Interim order for sale of Family Home

In many divorces, it is very difficult for one party to afford to retain the family home and still provide a fair outcome for the spouse that has/will move out.  Coming to terms with the sale of the home is a psychological sticking point in many separations and can delay the resolution of other financial issues.

We come across cases sometimes where the sale of the family home appears to be so “obvious” to one party that frustration and debts mount as the proceedings run on and the costs of running that household continue to need to be met when they are clearly unaffordable for all concerned in the medium term, let alone the longer term.

It has always previously been thought to be enormously difficult to secure an interim order for sale but Mostyn J has recently made a controversial decision to order one to try to bring “financial sanity on [a] family” whilst the longer-term financial issues were resolved.

In the recent case of BR v VT [2015] EWHC 2727 (Fam), 02 October 2015 Mostyn J made an interim order providing for the termination of the wife’s (W’s) right of occupation of the property and the immediate sale of the family home under Family Procedure Rule (FPR) 20.2(1)(c)(v).

The husband (H) and W separated in 2014.  Since separation, £158,000 was unaccounted for out of H’s gross income of £346,000.  The family home was estimated to be worth approximately £2.5million.  Notwithstanding this significant valuation, after deducting the family’s liabilities, which included approximately £310,000 of unpaid legal costs, the capital available for division would only be £105,000.  If the current position continued, there would be a significant ongoing deficit between H’s income and the family’s outgoings and the family would face an even deeper financial crisis.

Mostyn J felt it was crucial to avoid that and made an interim order for sale (first having to terminate the W’s rights to live in the property).

The judgment is controversial as Mostyn J treats FPR 20.2(1)(c)(v) as a basis to make an interim order for sale of land.  However, notwithstanding that controversy, perhaps we will see this interim remedy being applied for a little more readily in extreme cases where a family otherwise faces financial ruin whilst the longer-term litigation rumbles on.

If you have any queries about this article please contact jonesnickolds on 0203 405 2300 or contact@jonesnickolds.co.uk