From Joint Owners to Tenants in Common
The Client
Mr G, a father of two from South Yorkshire, was in the process of getting divorced from his wife when he came to MW Legal. Together, they owned their three-bedroom detached family home in joint names.
Divorce is rarely straightforward, especially when the family home is involved. In this case, the situation was complicated as Mr G’s estranged wife was planning to remarry.
With emotions naturally running high and a financial settlement still to be agreed, Mr G was concerned about protecting his share of the property, and, most importantly, his children’s future.
The Challenge
Under joint tenancy, property is treated as one single asset rather than two separate shares. If sold, it’s usually divided equally between the owners. But during divorce proceedings, the actual split is decided as part of the wider financial settlement. That means Mr G had limited control and no certainty over exactly how much he would receive on the sale of the property.
Also, if Mr G were to have passed away before the divorce was finalised, the property would have automatically passed to his wife, regardless of what was in his will. So there would have been no guarantee that his children would inherit anything from the property in the future.
With the outcome of the financial settlement still uncertain, he was naturally concerned. He wanted to take practical steps to safeguard his interest in the property and ensure that his children would be provided for.
The Solution
Our first piece of advice to Mr G was to change the ownership of the family home from joint tenants to tenants in common with immediate effect.
In essence, it meant that his share of the property could be separated from his wife’s, giving him more control over what would happen to it in the future.
The key steps were:
- Notice of Severance – This legal document allows one owner to change the property ownership type without the agreement of the other.
- Updating the Land Registry – Once the notice was served, we notified the Land Registry so that the title deeds were updated.
- A new will – Alongside the property changes, we also prepared a new will for Mr G. He chose to place his share of the property and his residuary estate into a discretionary trust for the benefit of his children. This meant that, whatever the future held, his children’s inheritance would be protected as far as possible.
When it came to updating his will, there were a few different options. While leaving his share of the house directly to his children sounded simple on paper, that would have meant his children couldn’t legally own property until they turned eighteen. Someone would still have had to manage it on their behalf, and it wouldn’t have given much flexibility if one child needed more financial support than the other, for example.
That was why we recommended a discretionary trust. It means that his share of the property, along with the rest of his estate, will now be managed by trustees (a close representative of Mr G who will act for him following his death) for the benefit of his children.
Read more about protective property trusts.
The Outcome
During an unsettling time, Mr G took clear, positive steps to protect his children’s future.
By making these changes, he knows that his share of the home and his wider estate is safeguarded for his children, giving him some peace of mind.
- Switching to Tenants in Common gave Mr G control over his share of the property.
- Serving a Notice of Severance ensured the change could be made without needing agreement from his estranged wife.
- Writing a new will with a discretionary trust meant his children’s inheritance was safeguarded.
At MW Legal Services, we understand that legal decisions often come at emotionally challenging times. Our role is to provide calm, practical advice and to guide you through your options in plain English.
If you are in a similar situation, please do not hesitate to contact us today.
When it comes to your peace of mind and your family’s welfare, the right time is now. Do the right thing and fill in one of our online will forms today!