Property Adjustment Orders

It is often the case that the family home is the most significant marital asset a couple shares, and what happens to it when they get divorced is often a source of considerable contention. Family homes are usually associated with sentimental memories, as well as the physical need for a safe home, particularly where children are involved.

Property Adjustment Orders are common in divorce proceedings, as they provide for the transfer of, or settlement of a property where there are children under 18.

It may be important for you to know about these orders when considering your financial settlement, and what limitations there are around them.

What is a Property Adjustment Order?

A Property Adjustment Order is a court order made by the court, under section 24 of the Matrimonial Causes Act 1973, included within the financial consent order that identifies the outcome of negotiations into what will happen to the family home after divorce. There is a similar order that can be made if you are going through civil partnership dissolution, under Schedule 5 of the Civil Partnership Act 2004.

The order specifies what happens to the property when the couple finalises their divorce. For example, if the property is to be transferred from joint names into a sole name, or from one party’s name to the other person. It determines who retains the property and use it as the home for any children under 18 until they have (all) turned 18.

The Property Adjustment Order can also dictate whether the property should be sold, and when, and how the proceeds should be divided.

The order can also be used to determine the outcome for other property, such as second homes or other real estate assets.

These orders ensure that assets are split fairly in divorce, and that any children are suitably provided for after their parents’ separation.