An older couple, one self-employed and the other employed in the private sector, wished to divorce. They had no mortgage, and children who were no longer dependent. One of the couple continued to reside in the family home whilst the other rented. They were amicable but the person in the family home was not happy to give up the nice house. Having gone to mediation, they had been unable to reach an agreement.
The private sector worker had concerns that the self-employed person had not been upfront as to financial circumstances. Because the other party was self-employed, there was no P60 and therefore investigations had to be done to ascertain this. This meant financial statements prepared by an accountant for 3 years, together with other financial documentation. These showed the self-employed person was not hiding anything.
In this scenario, the party residing in the house was not in a position to raise sufficient monies to buy out the other party’s interest in home. The court has to make sure that there is proper provision for both parties. Given the assets of all involved, the outcome was to allow for 2 smaller houses to be purchased, giving them both financial security into the future.