The home you built together is now the hardest thing to divide. One of you has moved out, the mortgage still needs paying, and neither of you can move on until the house is sorted. Here's how selling works after a separation, what happens with tax, and what to do with the house while you wait.
This guide is general information, not legal or tax advice. Take advice on your own situation.
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Key takeaways
- You can sell and split, buy one another out, or keep the home for now.
- Both of you stay responsible for a joint mortgage until it's repaid.
- Since April 2023, separating couples have up to three years to transfer assets without a tax charge.
- A partner who moves out but keeps a share may be able to claim Private Residence Relief.
- Short stays can cover the bills while the home sells, if you both agree.
Contents
What are your options for the family home?
- Sell and split the money. The cleanest break, but it takes months.
- One of you buys the other out. Only possible if that person can take on the mortgage alone.
- Keep it for now, for example until children finish school, then sell later.
Are you both still responsible for the mortgage?
Yes, if the mortgage is in both names. The lender can chase either of you for the full payment, even if one of you has moved out. Agree in writing who pays what until the house is sold, and talk to the lender early if money is tight.
Do you pay Capital Gains Tax when you transfer the home between you?
The rules became more generous in April 2023. The government's policy paper says separating spouses and civil partners are given up to three years in which to make no gain/no loss transfers of assets between themselves when they cease to live together, with unlimited time if the transfer is part of a formal divorce agreement.
There's also help for the partner who moves out but keeps a share. HMRC explains that a spouse or civil partner who retains an interest in the former matrimonial home can be given an option to claim Private Residence Relief when it's sold. Take advice from an accountant on your own position.
How long will the sale take?
Much like any sale: a few weeks to find a buyer, then months of legal work. Both owners usually need to agree the price, the buyer and the dates, so agree the process with each other early to avoid delays.
What does the home cost while you wait?
The bills don't stop. Springbok Properties notes that mortgage, council tax, insurance and utilities keep running while a home sells, commonly £1,000 to £1,700 a month. If neither of you lives there, check your insurance, because standard policies often restrict cover once a home is empty for about 30 days.
Can the home earn money while it sells?
If both owners agree, and the lender and insurer allow it, the home can be let on short stays while it's on the market, with viewings always put first. The income can cover the mortgage and bills, which takes pressure off both of you.
Frequently asked questions
Can I sell the house without my ex's agreement?
Not usually, if you own it jointly. You'll both need to agree, or ask the court to decide.
Who pays the mortgage after separation?
If it's a joint mortgage, you're both responsible. Agree the arrangement in writing.
Do I pay tax when my ex transfers the house to me?
Usually not, if it's within the three-year window after separation or part of a formal divorce agreement.
What if neither of us lives in the house?
Tell your insurer, and consider short stays to cover the bills while it sells.
Should we wait to sell?
It depends on children, money and the market. Take advice before agreeing to keep a jointly owned home for years.
Related guides
Sources
This is general information, not legal, financial, tax or insurance advice. Market figures are averages as of the date shown above and change every month. Speak to a qualified professional before you act on anything here.