There may be uncertainty around financial matters following on from a divorce, particularly in relation to the dividing of assets and the former marital home. This can become difficult when children are involved, as their needs are paramount. It is usually best to ensure that any children involved are able to retain as much normality as possible throughout the divorce process, as it is going to be challenging for them to adjust to change. The change to the family unit may already be hard for them to accept, so by being able to retain the family home, attend the same school and maintain friendships will make the situation easier to come to terms with.
There may be uncertainty around financial matters following on from a divorce, particularly in relation to the dividing of assets and the former marital home. This can become difficult when children are involved, as their needs are paramount. It is usually best to ensure that any children involved are able to retain as much normality as possible throughout the divorce process, as it is going to be challenging for them to adjust to change. The change to the family unit may already be hard for them to accept, so by being able to retain the family home, attend the same school and maintain friendships will make the situation easier to come to terms with.
In order to promote stability, a delay can be put in place to ensure that your children are able to remain in the family home until they are old enough to adapt. The courts are able to use what is known as a ‘Mesher Order’ to prolong the immediate sale of a property or transfer of equity. The case of MESHER involved a divorcing couple with a nine-year-old child. It was held that neither sale of property or transfer of equity was fair, and the house was to be held on trust for the parties in equal shares, on the basis that it would be sold once the child turned 17. The mortgage payments were to be paid equally by the parties over that time period (this can vary in each case).
The current economic market may also encourage the need for a Mesher order. By delaying the sale of a property, it could benefit by holding off until the financial situation improves in the future, during which the parties involved are able to remain on the property ladder. This may provide benefit in the future as there is presently an increased difficulty getting on the property ladder. The idea around this Order is to create security for any children involved and guide them through this difficult time. Some may argue that it creates a financial tie between the parties, however, in reality the parties will inevitably be tied until the children become independent. It is important to maintain communication and mutual respect, which will enable the parties to reach agreements based on the child’s best interests.
The Order may not be suitable for a number of reasons, depending on the circumstances. With both parties remaining on the mortgage, it can be difficult to obtain a second mortgage, therefore resulting in one having to rent for a set period of time. If the children are young, money tied up within the house will be unavailable for a number of years. Eventually, this may work at a disadvantage once the property is sold, due to increased age and reduced working life affecting potential mortgage borrowing capacity.
It can be hard to weigh up the options on whether a Mesher Order is suitable for your situation. It is advisable that you contact a qualified solicitor who will be able to assist you and discuss any further financial matters. At New Leaf Solicitors, we have experienced solicitors on hand to make the process that little bit easier.
Please contact us by email below.
Rugby office - amandaweaver@newleafsolicitors.co.uk
Daventry office – amytrevellick@newleafsolicitors.co.uk
Birmingham office - paulineorourke@newleafsolicitors.co.uk
Hinckley office – melaniewestwood@newleafsolicitors.co.uk
