What is a Property Adjustment Order in a Divorce?

To resolve disputes about property ownership or occupancy after a marriage ends, a Property Adjustment Order helps achieve a fair distribution of property based on each person’s financial needs, contributions, and circumstances.

The Property Adjustment Order can apply to other properties as well as the family home. Made during divorce or civil partnership dissolution proceedings, this type of order can transfer of ownership of a property or change the rights to occupy a property.

You would need a Property Adjustment Order if you cannot agree on how your property should be divided in your divorce. This could happen if you want to remain in the family home while your ex moves out or if you wish to sell the property and divide the proceeds. Either way, if you cannot agree on the best way forward, a Property Adjustment Order can dictate the course of action.

The court can transfer a property’s ownership from one spouse to the other, often in cases where one party remains in the family home. The court can also order the sale of a property, with the proceeds divided as agreed or directed by the court. There is also the option of a deferred sale (Mesher Orders) where the sale of the property is postponed until a specific event. This could be when children reach a certain age or a remarriage.

Negotiation where couples reach an agreement and avoid court intervention is encouraged. If this is not possible, the process begins with an application to the court. Your family law solicitor will be able to help guide you through this process. The court’s decision is legally binding, and non-compliance with it can lead to enforcement actions.

A Property Adjustment Order can be varied, but only under specific circumstances and within certain limits. Typically, the court retains the ability to vary terms regarding timing or implementation if unforeseen changes arise, such as non-compliance or significant changes in the financial circumstances of either party. However, the court’s power to alter property ownership itself is generally limited once the order has been finalised. Legal advice is crucial to assess the likelihood of a successful application for variation.

A Property Adjustment Order can directly influence the sale of a home by determining when and how the property is sold. For example, it may stipulate that the sale is deferred until children reach a certain age or another specified event occurs. Until those conditions are met, the property cannot be sold without violating the order. The order may also outline how proceeds from the sale are to be divided between the parties.

The cost of obtaining a Property Adjustment Order varies based on complexity and whether an agreement is reached amicably or requires litigation. Court filing fees are typically around £275, but legal fees can significantly increase this amount, especially if contested proceedings are involved. The overall cost will also depend on the level of legal advice and representation needed. Consulting a family law solicitor can help you understand potential costs and explore cost-effective resolutions.

The duration of a Property Adjustment Order depends on the terms outlined by the court. Some orders are time-limited or contingent upon specific events, such as children reaching adulthood or remarriage of one party. Others, such as outright transfers of ownership, are permanent. Orders tied to deferred sales or specific conditions remain in effect until those conditions are satisfied. Clear legal guidance can help ensure compliance with the order’s terms.

It is important to get legal advice from a specialist family law solicitor. A Property Adjustment Order can impact your financial future and your solicitor will be able to advise on your rights and the best way forward.

As leading family lawyers in Milton Keynes, we are experienced at helping our clients with property disputes during divorce. Contact us to get the advice you need to move forward with confidence. In addition to our head office in Milton Keynes, we also have divorce lawyers in Watford, and Central London. Talk to us in confidence and find out where you stand. Get in touch – we’re here to help.

This article is intended for the use of our clients and other interested parties. The information contained in it reflects the author’s view and is believed to be correct at the date of publication. However, it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional legal advice.