What is a Property Adjustment Order?
A property adjustment order is a legal decision made by the court during divorce or civil partnership dissolution proceedings. Its main purpose is to change the ownership or rights relating to property – such as the family home or other assets – so that both parties receive a fair share when their relationship ends.
When a couple separates, deciding what happens to shared property can be one of the most complex and stressful parts of the process. A property adjustment order allows the court to step in and make binding decisions about how property should be dealt with. This could involve:
- Transferring ownership of a property from one spouse or civil partner to the other
- Ordering the sale of a property, with the proceeds divided between the parties
- Dividing the value of property in another way that the court considers fair
The goal is to ensure that both parties’ needs are considered – especially when there are children involved or when one person has a greater need for housing or financial support. Property adjustment orders are a key part of the broader process of financial settlements in divorce, where all assets and finances are reviewed to reach a fair outcome. You can find more practical guidance on this process by visiting financial settlements.
Property adjustment orders gain their authority from family law statutes, including the Matrimonial Causes Act 1973 and, more recently, updates brought in by the Divorce, Dissolution and Separation Act 2020. These laws give courts the power to make flexible arrangements based on each couple’s unique circumstances.
If you’re unsure whether you need a property adjustment order, it’s important to consider how your property is owned and whether you and your former partner can reach an agreement yourselves. If not, the court can step in to ensure a fair division. For a deeper understanding of how these orders work, including examples and legal precedents, see this detailed guide on Property Adjustment Order.
In summary, property adjustment orders are a vital tool for ensuring that property and assets are divided fairly during divorce or dissolution. They offer protection and clarity when agreement cannot be reached, forming a central part of the financial settlement process.
How Property Adjustment Orders Work
When a couple divorces in the UK, one of the main concerns is what happens to property and assets they own together or separately. A property adjustment order is a legal tool that allows the court to decide how these assets should be divided to achieve a fair outcome. Understanding how property adjustment orders work can help you prepare for the process and make informed decisions about your future.
Applying for a Property Adjustment Order
The process begins as part of the overall financial settlement during divorce proceedings. Either spouse can apply for a property adjustment order, usually alongside other financial claims. The court will consider the application as part of its wider review of the couple’s finances, debts, and family circumstances. For a step-by-step overview of how property is typically handled during divorce, see our guide on property considerations during divorce.
What Types of Property Can Be Affected?
A property adjustment order can relate to a wide range of assets, including:
- The family home (whether owned jointly or by one spouse)
- Other residential properties (such as buy-to-let or holiday homes)
- Commercial property
- Land
- Shares in property-owning companies
- Sometimes, other valuable assets if they are tied to real estate
The court’s power is not limited to the main home; it can make orders regarding any property in which either spouse has a legal or beneficial interest.
Possible Outcomes of a Property Adjustment Order
The court has several options when making a property adjustment order. These can include:
- Transferring ownership: For example, transferring the family home from joint names into the sole name of one spouse.
- Ordering the sale of property: The court may require a property to be sold, with the proceeds divided between the parties in proportions it considers fair.
- Dividing the proceeds: If a property is sold, the court will decide how the money should be split.
- Granting a right to occupy: In some cases, the court may allow one spouse (and any children) to remain in the home for a set period.
The court’s approach is flexible and aims to meet the needs of both parties, especially where children are involved.
How Does the Court Decide What Is Fair?
The court’s main goal is to achieve fairness, taking into account all the circumstances of the case. This includes factors such as:
- The welfare of any children under 18
- The financial needs and resources of each party
- The length of the marriage
- The standard of living enjoyed during the marriage
- The age and health of each spouse
- The contributions each has made (financial and non-financial)
The legal framework for property adjustment orders is set out in the Family Law Act 1996, Section 24. For a practical overview of how these orders work in real situations, you can also refer to the Property Adjustment Order resource.
The Role of the Court
While many financial settlements are agreed between spouses, a property adjustment order is made by the court when agreement cannot be reached. In England and Wales, these cases are usually heard in the Family Court, not the Crown Court, which deals mainly with criminal cases. The judge will review all the evidence and make a decision based on the law and the specific facts of your case.
Timeframes and Practical Steps
Applying for a property adjustment order is part of the wider divorce and financial remedy process. Key steps include:
- Disclosure: Both parties must provide full details of their finances and property.
- Negotiation and Mediation: Couples are encouraged to reach agreement if possible, often with the help of solicitors or mediators.
- Application to Court: If no agreement is reached, either party can apply for a financial order, including a property adjustment order.
- Court Hearings: There may be several hearings, including a final hearing where the judge makes a decision.
The process can take several months, depending on the complexity of the assets and the willingness of both parties to cooperate. It is important to seek legal advice early and ensure you understand your rights and options.
For a detailed explanation of the legal rules and practical guidance, see the Property Adjustment Order page, and for the official legal text, refer to the Family Law Act 1996, Section 24.
By understanding how property adjustment orders work, you can take informed steps to protect your interests and achieve a fair resolution following divorce.
When is a Property Adjustment Order Used?
When is a Property Adjustment Order Used?
A property adjustment order is commonly used during divorce or civil partnership dissolution when there is a need to decide what happens to shared property, such as the family home or other significant assets. These orders play a key role in ensuring a fair division of property, especially when both parties cannot agree on how assets should be split after separation.
Typical situations where property adjustment orders are requested include:
- Disputes over the family home: If both spouses have a legal interest in the marital home, but only one wishes to remain living there, a property adjustment order can transfer ownership or change the shares each person holds.
- Division of shared assets: These orders can address other jointly owned properties, holiday homes, or investment properties, setting out who will own or benefit from them after the divorce.
- Protecting children’s welfare: Courts may use property adjustment orders to ensure that children of the marriage have a stable home, often allowing the primary caregiver to remain in the property until the children reach a certain age.
- Balancing financial fairness: If one spouse has contributed more financially or needs additional support to rehouse themselves, the court can use a property adjustment order to reflect these circumstances.
A property adjustment order helps achieve a fair financial settlement by giving the court flexibility to transfer, sell, or reallocate property in a way that meets both parties’ needs. The court’s primary consideration is fairness, taking into account factors such as the length of the marriage, each person’s financial resources, and the welfare of any children.
Legal framework: The authority for property adjustment orders comes from the Family Law Act 1996, Section 24, which outlines the court’s powers to make these orders during divorce and separation proceedings.
Comparison with other financial orders: Property adjustment orders are just one type of order the court can make. Other options include lump sum orders (where one party pays a set amount to the other), maintenance orders (ongoing financial support), and pension sharing orders. To understand how property adjustment orders fit into the wider picture, see our guide to divorce financial orders.
Practical examples:
- If one spouse wants to “buy out” the other’s share of the family home, the court can order the transfer of that share.
- Where both parties agree to sell the home, but cannot agree on the split of proceeds, the court can determine and order the division.
- If the property is in one person’s name but the other has contributed financially, a property adjustment order can recognise those contributions and adjust ownership accordingly.
For a detailed overview of how these orders work and the legal principles involved, you can refer to Property Adjustment Order, which provides practical answers and guidance on property adjustment orders in UK family law.
If you are considering applying for a property adjustment order, or want to know how it might affect your situation, it is important to seek legal advice and understand your rights. The court will always aim to reach a financial settlement that is fair to both parties and any children involved.
Property Adjustment Orders and Other Financial Orders
When going through a divorce or dissolution of a civil partnership in the UK, the court can make several types of financial orders to help both parties reach a fair settlement. Understanding how property adjustment orders fit alongside other financial orders is crucial for making informed decisions about your future.
Overview of Financial Orders in Divorce
Financial orders cover a range of issues, from dividing property and assets to ongoing financial support. The main types include:
- Property adjustment orders
- Clean break orders
- Lump-sum orders
- Pension sharing orders
- Spousal maintenance
Each order serves a different purpose and may be used alone or in combination, depending on your circumstances.
Property Adjustment Orders and Their Role
A property adjustment order allows the court to transfer or change the ownership of property – including the family home – between spouses or civil partners. For example, the court might order that one person’s share of the house is transferred to the other, or that the property is sold and the proceeds divided.
To learn more about how these orders work in practice, see Property Adjustment Orders for detailed guidance and examples.
How Property Adjustment Orders Compare to Other Financial Orders
Clean Break Orders
A clean break order is designed to end any ongoing financial ties between you and your former partner. While a property adjustment order deals specifically with property, a clean break order can complement it by ensuring neither party can make future financial claims after the settlement is finalised. In many cases, both orders are used together to achieve a complete and final division of assets.
You can find more about how these orders work in practice on the Clean Break Orders page.
Lump-Sum Orders
A lump-sum order requires one party to pay a fixed sum of money to the other. Unlike property adjustment orders, which transfer ownership of property, lump-sum orders provide immediate financial compensation – sometimes as part of a wider settlement involving property or pensions.
Pension Sharing Orders
Pension sharing orders deal specifically with dividing pension assets. The court can order that a percentage of one person’s pension is transferred to the other, providing long-term financial security. This is different from a property adjustment order, but both may be used in the same settlement to ensure a fair division of all assets. For more information, visit Pension Sharing Orders.
Spousal Maintenance
Spousal maintenance is an order for regular payments from one party to the other, usually where there is a significant difference in income or earning potential. While property adjustment orders deal with assets, spousal maintenance provides ongoing financial support, and both can be considered together as part of a comprehensive financial settlement.
Why Understanding All Your Options Matters
Every divorce or dissolution is unique, and the court will consider your individual circumstances before making any financial orders. By understanding the full range of options – including property adjustment, clean break, lump-sum, pension sharing, and spousal maintenance orders – you can better protect your interests and plan for the future.
For a practical overview of how the courts approach property and financial settlements, see Property Adjustment Orders and Clean Break Orders.
If you are unsure which orders may be appropriate in your situation, seeking legal advice can help you make the right choices and achieve a fair outcome.
How to Apply for a Property Adjustment Order
How to Apply for a Property Adjustment Order
Applying for a property adjustment order is an important step for many people going through a divorce or separation in the UK. This type of order allows the court to decide how property – such as the family home – should be dealt with after a relationship ends. Below is a step-by-step guide to help you understand the process, the paperwork involved, and what to expect along the way.
Step-by-Step Guide to Applying
- Understand Your Options and Legal Position
Before making an application, it’s vital to understand how property adjustment orders fit into the broader context of financial settlements. A property adjustment order is just one of several financial orders the court can make during divorce proceedings. - Seek Legal Advice
While you can apply for a property adjustment order yourself, it is highly recommended to consult a solicitor or legal advisor. They can help you assess your rights, prepare your application, and ensure you meet all legal requirements. Professional guidance is especially important if there are complex assets or if you and your ex-partner cannot agree on how to divide property. - Prepare the Necessary Paperwork
To apply, you’ll need to complete a Form A (Notice of intention to proceed with an application for a financial order), along with supporting documents about your finances, such as Form E (financial statement). You must provide full disclosure of your assets, income, and liabilities. Incomplete or inaccurate information can delay proceedings or affect the outcome. - File Your Application with the Court
Submit your completed forms to the family court, along with the required fee. The court will then set a timetable for your case, including deadlines for exchanging financial information and attending court hearings.
Legal Requirements
Property adjustment orders are governed by the Family Law Act 1996, Section 24. The court will consider several factors when deciding whether to grant an order, including the needs and resources of each party, the welfare of any children, and the length of the marriage or civil partnership.
For a more detailed explanation of the law and practical guidance, see this overview on Property Adjustment Order.
The Role of Solicitors or Legal Advisors
Solicitors play a key role in the application process. They can:
- Advise you on your legal rights and likely outcomes
- Help you negotiate with your ex-partner to reach an agreement where possible
- Prepare and submit the necessary paperwork
- Represent you in court hearings
If you’re unsure about any part of the process, a legal advisor can clarify your options and help you avoid common pitfalls.
What to Expect During Court Hearings
Most property adjustment order applications require at least one court hearing. The court will review both parties’ financial disclosures and listen to arguments from each side. It’s common for the court to encourage settlement through negotiation, but if no agreement is reached, the judge will make a decision based on the evidence.
While family law matters are usually dealt with in the family court, it’s useful to understand the wider court system, including the Crown Court, which handles more serious cases but is not typically involved in property adjustment orders.
Possible Outcomes and Enforcement
The court can make a range of property adjustment orders, such as:
- Transferring ownership of a property from one party to another
- Ordering the sale of a property and division of the proceeds
- Granting one party the right to occupy the family home for a set period
Once an order is made, it is legally binding. If one party fails to comply, the other can return to court to seek enforcement. The court has various powers to ensure its orders are followed, including imposing penalties or instructing third parties (such as banks or land registries) to carry out the necessary actions.
Further Guidance
Applying for a property adjustment order can be complex, especially when dealing with valuable or disputed assets. For a practical overview and answers to specific legal questions, visit the Property Adjustment Order resource. To read the official legal text, refer to the Family Law Act 1996, Section 24.
Understanding the process and your rights can help you make informed decisions and achieve a fair outcome in your property and financial settlements after separation.
Impact of Property Adjustment Orders on Children and Other Matters
When a couple separates or divorces, the financial arrangements – including what happens to the family home – can have a significant impact on any children involved. Property adjustment orders are legal tools that allow the court to transfer, sell, or otherwise alter interests in property to ensure a fair outcome for both parties. However, the court’s decisions do not occur in isolation; they are closely linked to arrangements made for the children’s welfare and living situation.
How Property Adjustment Orders Intersect with Child Arrangements
The court’s primary concern in family law is the welfare of any children. When considering a property adjustment order, judges will look at where the children will live and how their needs can best be met. For example, if a child’s main carer needs to remain in the family home to provide stability, the court may order that the property is transferred to that parent, or that its sale is postponed until the children reach a certain age. These decisions are often made alongside, or in connection with, child arrangements orders, which determine who the children will live with and how much time they will spend with each parent.
For a deeper understanding of how child arrangements orders work and how they might affect your property settlement, see this Analysis: An Introduction to child arrangements orders.
Considering Children’s Needs in Financial Settlements
The law requires that the needs of any children are given first consideration when making financial orders after divorce. This principle is set out in the Matrimonial Causes Act 1973, which governs property adjustment orders and other financial provisions. Section 25 of the Act specifically instructs courts to take into account the welfare and housing needs of any children under 18. This means that, in practice, the court will often ensure that the children’s primary home is protected as far as possible, even if it means delaying the sale of the property or adjusting ownership shares.
Coordination Between Financial Orders and Child Arrangements
Financial settlements and child arrangements are closely connected. For example, if a parent is granted the majority of the children’s care, this can influence the court’s decision on who should remain in the family home. The goal is to provide stability for the children while also achieving a fair division of assets. It is not uncommon for property adjustment orders to be crafted in a way that supports the agreed or ordered child arrangements, ensuring that both financial and emotional needs are met.
For more information on how property adjustment orders are applied and the legal principles behind them, you can consult Property Adjustment Orders for practical guidance. To explore the legal framework in detail, the Matrimonial Causes Act 1973 provides the statutory basis for both financial and child-related orders.
Understanding how property adjustment orders and child arrangements interact is key to ensuring the best outcome for your family after separation. If you are facing these decisions, it is wise to seek legal advice and consider the long-term needs of your children as part of your financial settlement.
Frequently Asked Questions About Property Adjustment Orders
Frequently Asked Questions About Property Adjustment Orders
When going through a divorce or separation, questions about what happens to shared property are common. Below, we answer some of the most frequently asked questions about property adjustment orders, helping you understand your rights, the legal process, and where to seek further help.
Who can apply for a property adjustment order?
Property adjustment orders are available to married couples or civil partners as part of the financial settlement during divorce or dissolution proceedings. Either party can apply for such an order if they are unable to agree on how assets, such as the family home, should be divided. These orders are not generally available to cohabiting couples who have not been married or in a civil partnership.
What does a property adjustment order do?
A property adjustment order is a type of court order that can transfer, sell, or change the ownership of property between divorcing or separating spouses. The court has wide powers under the Family Law Act 1996, Section 24 to:
- Transfer property from one spouse to the other
- Order the sale of a property, with proceeds divided as the court sees fit
- Change the shares each spouse holds in a jointly owned property
The aim is to achieve a fair outcome, taking into account factors such as the needs and financial resources of both parties, their contributions to the marriage, and the welfare of any children.
How does the court decide how property is divided?
The court considers several factors, including:
- The welfare of any children under 18
- The income, earning capacity, property, and other financial resources of each party
- The financial needs, obligations, and responsibilities of each party
- The standard of living during the marriage
- The age and health of each party
- The duration of the marriage or civil partnership
There is no automatic 50/50 split. Instead, the court seeks a solution that is fair and reasonable in the circumstances. For a more detailed explanation, see Property Adjustment Orders from LexisNexis.
What rights does each spouse have to the family home?
Both spouses usually have a legal right to occupy the family home until the divorce is finalised, regardless of whose name is on the deeds or tenancy agreement. The court can make an order to transfer ownership, grant one party the right to remain in the home for a certain period, or order the sale of the property. The specific outcome will depend on the family’s needs and the overall financial settlement.
What if we cannot agree on how to divide the property?
If you and your spouse cannot reach an agreement, you may need to apply to the court for a property adjustment order. The court will consider all the circumstances and make a decision for you. Before applying to court, it is usually advisable to try mediation or negotiation with the help of a solicitor.
What happens if one party refuses to comply with a property adjustment order?
If a party does not comply with the order, the other party can apply to the court to enforce it. The court has the power to ensure that its orders are followed, which may include penalties for non-compliance or further orders to facilitate the transfer or sale of property.
Which court deals with property adjustment orders?
Property adjustment orders are usually dealt with in the family court as part of divorce or dissolution proceedings. In rare cases involving complex legal issues or appeals, the Crown Court may become involved, but most matters are resolved at the family court level.
Where can I get legal advice about property adjustment orders?
It is important to seek independent legal advice if you are considering applying for a property adjustment order or are involved in a dispute about property division. A family law solicitor can explain your rights, help you negotiate an agreement, and represent you in court if necessary. For authoritative legal information, you may also wish to consult the Family Law Act 1996, Section 24 and the detailed guidance provided by Property Adjustment Orders from LexisNexis.
Understanding property adjustment orders can help you make informed decisions during a challenging time. If you have further questions or need tailored advice, contact a qualified family law professional.
