Property Adjustment Order – What is it?

A Property Adjustment Order is one of a wide range of orders that the Court can make to adjust or transfer property ownership between separating couples. If the parties are married, the order would be made under Section 24 of the Matrimonial Causes Act 1973, and Schedule 5 of the Civil Partnership Act 2004 has similar provisions for those who have entered into a civil partnership.

These powers allow the Court to transfer property between the parties or to a child of the family.  Most commonly, the property the parties will be concerned about will be the family home, but can relate to buy to let properties, holiday homes or commercial premises.

What are the types of Property Adjustment Orders?

There are several types of orders that can be made, these are:

• The Court can transfer jointly owned property into one of the parties’ names;
• The Court can transfer a property from the sole name of one party into the sole name of the other party;
• The Court can leave the property in joint names and vary each of the parties’ shares in the property, providing clauses to determine when the property should be sold and the proceeds divided between the parties. The delayed sale often has triggers which might include the youngest child reaching 18 or finishing their secondary education,  or the party remaining in the family home re-marrying or voluntarily vacating the property.

What factors affect a Property Adjustment Order?

The main driver of the decision is to achieve fairness between the parties.  The needs of any child of the family will be the first consideration of the Court.  There are a set of statutory factors to be taken into consideration, and a Judge will determine how much weight is to be given to each factor in an individual case.  The most important factors in the majority of cases are:

• The ages of the parties and the duration of the marriage;
• Each party’s financial needs, obligations and resources;
• The contributions made by each party to the welfare of the family – these contributions can be financial or non-financial e.g. caring for children and the home;
• The welfare of any children, especially their housing needs.

How can I get a Property Adjustment Order?

The financial terms of a settlement can be agreed by direct discussion between the parties with the assistance of solicitors or via mediation.  If you are able to agree on the terms of a financial settlement with your former partner, it is possible to instruct a solicitor to draft the agreement into a formal Court Order.  This draft Order can then be submitted to the Court for a Judge for approval with a payment of a small court fee.  The Order also has to be accompanied by a statement of both parties’ financial circumstances signed by both parties.  In this situation, the order can be approved by the Judge, without the parties having to attend any court hearings.

The application can only be submitted to the Court after the Conditional Order of divorce is pronounced, and the order becomes enforceable after the Final Order of divorce is pronounced.

If it is not possible for the parties to reach an amicable settlement, one party can issue a formal application to the Court for the Judge to make a decision which will be imposed on both parties.

In each circumstance, the Property Adjustment Order will form part of the overall financial settlement order.

Family Law Solicitors Near Me – book an appointment and talk to Tollers

We recognize the emotional challenges of Family Law matters and disputes.  Our Family lawyers are dedicated to advising and assisting based on having our clients’ best interests at the heart of everything we do.  We pride ourselves on keeping our clients fully informed of the progress of your case.  We are here to provide comprehensive Family Law advice, ensuring you have the information and support you need to make an informed decision.

For an initial appointment – up to 1½ hours for a fixed sum of £200 including VAT,  please get in touch with the Family Law Team at Tollers Solicitors to arrange a Family Law consultation.  These are available in one of our locations –Northampton, Corby, Stevenage, Milton Keynes, Kempston, Welwyn, Letchworth and Oakham.

Our aim is that you will leave this initial appointment better informed about your legal rights and responsibilities with a sense of direction on moving forward and information on possible options available to you for a satisfactory resolution.

Talk to Tollers

If you need assistance and advice regarding a Property Adjustment Order or are unsure where to start when it comes to resolving financial matters…Talk to Tollers on 01604 258558, our Family Law Team is on hand and would be happy to assist.

More information regarding Finances on breakdown is available here.