There is a lot of confusion about what happens with the ownership of a property after divorce, or even when an unmarried couple split up and are left with a joint property ownership to deal with.
Let Mc Naught and Co help you, either prior to divorce or a split, make proper arrangements for dealing with the respective parties' shares.
PROPERTY AFTER DIVORCE
If property is jointly owned, or owned by one party before divorce, what happens afterwards?
The Divorce order will determine ownership of the property. Either it needs to be sold or transferred, or the share of one transferred to the other.
Transferring a share of one to the other, where both names already appear on the title deeds, is easiest. It's done by way on an endorsement stamp on the title deeds showing that the one party is now the owner of the whole property. If only one name is on the existing deeds, the whole property needs to be transferred to the other; or, if the party in whose name the property is already registered, is keeping the property no transfer needs to take place.
MORTGAGE BOND
More complicated is where the property is bonded to the bank and the loan is still outstanding.
In such case, if the property is being sold, the bond will get paid off simultaneously from the purchase price and the bond will be cancelled.
If a share of the property or the whole is to be endorsed or transferred, the party becoming the owner will need to take over responsibility for the mortgage loan. This will depend on the bank being satisfied that such party can afford the loan alone and can be substituted as the debtor under the bond and the other party released from liability. It will require an application to the bank and if unsuccessful the property may still need to be sold and the bond paid off.
Mc Naught and Co are property and conveyancing specialists and can help you determine the best course of action, and help you put it into place.
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- divorce affects property ownership
- sale or transfer one party's share
- what about mortgage bonds and bank loans
These are questions Mc Naught and Co can help you resolve.