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How the Family Home is Treated in a Divorce
UK media has recently covered the news that Diane Culligan, the founder of the UK women’s national football team, the Lionesses, “has triumphed in a divorce row involving a £7 million home in north London.” (The Times).
Mr Justice MacDonald ordered that Mr and Ms Culligan should be awarded about £13.7 million each in assets, allowing for an equal division of the matrimonial assets. Ms Culligan would receive the family home, and her former husband would get the other properties and the bulk of his business interests. The couple married in 1992 and have three children.
The judge acknowledged that “on the face of it, it is difficult to see how the wife’s current needs as a single person extend to a nine-bedroom, seven-bathroom property”. However, he recognised her emotional connection to the family home, adding that “a fair distribution of the assets can be achieved without the need to sell” the property.
Usually, the former matrimonial or family home (“FMH”) is the most valuable matrimonial asset that couples have, both financially and emotionally. Deciding what will happen to the FMH is one of the more sensitive and contentious issues divorcing couples face.
Ms Culligan was fortunate in that there were surplus matrimonial assets to allow her to retain the FMH, whilst still leaving enough for her spouse to retain an appropriate share of the family assets overall. In other cases, however, deciding what happens to the FMH in a divorce can be more complex.
The Law
The FMH is considered a matrimonial asset and therefore forms part of the matrimonial pot that is up for division on a divorce. It is important to understand that both parties have a financial interest in the FMH. This is regardless of circumstances where for example, one spouse purchased the FMH prior to marriage, one spouse contributed more to its purchase, or if it is only in one spouse’s sole legal name.
The case of RM v WP [2024] EWFC 191 (B) highlights that a property owned prior to marriage can become a matrimonial asset if it is used as a family home. However, it makes clear that the FMH is not always shared equally. On divorce, the starting point is equality unless there are good reasons to depart from equality, as set out in Section 25(2) of the Matrimonial Causes Act 1973.
Therefore, the court can depart from an equal division of matrimonial property, even the FMH, where fairness requires it.
Examples Of How The FMH Could Be Dealt With On Divorce
This is appropriate if:
This is appropriate if:
This is appropriate if:
Need Advice Deciding What Happens To Your FMH During A Divorce?
At Seddons, we have a dedicated team of family law experts who will be able to assist you. Please get in touch.
How the Family Home is Treated in a Divorce | Seddons Solicitors UK media has recently covered the news that Diane Culligan, the founder of the UK women’s national football team, the Lionesses, “has triumphed in a divorce row involving a £7 million home in north London.” (The Times).
Mr Justice MacDonald ordered that Mr and Ms Culligan should be awarded about £13.7 million each in assets, allowing for an equal division of the matrimonial assets. Ms Culligan would receive the family home, and her former husband would get the other properties and the bulk of his business interests. The couple married in 1992 and have three children.
The judge acknowledged that “on the face of it, it is difficult to see how the wife’s current needs as a single person extend to a nine-bedroom, seven-bathroom property”. However, he recognised her emotional connection to the family home, adding that “a fair distribution of the assets can be achieved without the need to sell” the property.
Usually, the former matrimonial or family home (“FMH”) is the most valuable matrimonial asset that couples have, both financially and emotionally. Deciding what will happen to the FMH is one of the more sensitive and contentious issues divorcing couples face.
Ms Culligan was fortunate in that there were surplus matrimonial assets to allow her to retain the FMH, whilst still leaving enough for her spouse to retain an appropriate share of the family assets overall. In other cases, however, deciding what happens to the FMH in a divorce can be more complex.
The Law
The FMH is considered a matrimonial asset and therefore forms part of the matrimonial pot that is up for division on a divorce. It is important to understand that both parties have a financial interest in the FMH. This is regardless of circumstances where for example, one spouse purchased the FMH prior to marriage, one spouse contributed more to its purchase, or if it is only in one spouse’s sole legal name.
The case of RM v WP [2024] EWFC 191 (B) highlights that a property owned prior to marriage can become a matrimonial asset if it is used as a family home. However, it makes clear that the FMH is not always shared equally. On divorce, the starting point is equality unless there are good reasons to depart from equality, as set out in Section 25(2) of the Matrimonial Causes Act 1973.
Therefore, the court can depart from an equal division of matrimonial property, even the FMH, where fairness requires it.
Examples Of How The FMH Could Be Dealt With On Divorce
This is appropriate if:
This is appropriate if:
This is appropriate if:
Need Advice Deciding What Happens To Your FMH During A Divorce?
At Seddons, we have a dedicated team of family law experts who will be able to assist you. Please get in touch.
How the Family Home is Treated in a Divorce | Seddons Solicitors