For many people who are thinking about divorce, the thought of what is going to happen to their home and where they are going to live next can be very frightening. This is just as true for married couples who own their home as it is for those who rent so it can be a very daunting time, especially as you have got the break-up of your marriage to contend with as well.

A small crumb of comfort however is that divorce proceedings, especially when it comes to the home and finance can take many months to resolve which should allow you to buy yourself some time and to consider all your options.

Private Ownership

Once you know there’s no turning back, you need to obtain an up to date valuation on your home as this will be needed if court proceedings are to follow. As well as this information, you also need to know how much you have left to repay on your mortgage. The difference between that figure and the valuation on your home is the ‘equity’ that is left in the home itself which will be divided between both parties, although not necessarily equally. Obtaining legal advice by this stage is important and it will allow you to determine if either are you are looking to buy the other partner out and continue to live there or, if neither of you wish to do that, or can’t afford to, it’s then time to work out what other options you might have as you might need to consider private renting or staying with friends or family in the short-term at least, if you cannot afford a mortgage on your own.

Remember, even if one of you has subsequently moved out, you still have a joint responsibility to each other in terms of any mortgage repayments etc. until your divorce is made final by the court and you should do your utmost to keep on top of any repayments you’re obliged to make.

Rented Property (Private)

Ultimately, it will be the landlord who will decide whether or not one of you can stay in the property should you divorce. Usually, providing the person staying can meet the rental payments, a landlord would probably see no reason why they should move out. However, others have strict rules about not letting single parents or those on benefits rent houses from them and although that may seem discriminatory, they have the right to choose who they want to rent their houses to so it’s important that you discuss these issues with them.

Rented Property (Council or Housing Association)

If you live in a housing association or council rented property, it may be worth asking if they can arrange additional housing to be made available for the spouse who is moving out of the matrimonial home. Even if the other person has left and you feel that you cannot cope with the amount of money you may have left to live on now that your spouse has gone, do not simply hand over the keys to the property as you are, in effect, deliberately making yourself homeless which may have an impact upon you getting another similar home in the future. You should go and speak with the relevant council or housing association representative first as they may be able to make some temporary allowances for you.

Why Communication is so Important

Despite what we may read in the papers about lenders forcing people into bankruptcy as soon as they get into financially difficulty, many lenders are only too aware that divorce and the implications of it can happen to anyone at any time and, providing you open dialogue and keep them informed as to the current situation, they can often make allowances or agree some different terms which make things easier for you to manage for a pre-determined period, at least.

Even when renting, people are often willing to help and Shelter is a useful first port of call for any housing advice. If money has suddenly become scarce, it’s also well worth checking that you have all the state entitlements you are allowed. With your circumstances changing due to a divorce, you may have overlooked certain benefits and credits which you may be entitled to so you should check this out by visiting your local Citizen’s Advice Bureau.