Going through a divorce or civil partnership dissolution is never just about ending a relationship it also means making big decisions about your home and financial security. One of the key tools the family court can use to help reach a fair outcome is a property adjustment order.
It can feel overwhelming when trying to find the right information that relates to your situation, so our team of experts have come together to explain what a property adjustment order is, when it’s used, how the court decides what’s fair, and how our family law team in Nuneaton can support you through the process.
What is a property adjustment order?
A property adjustment order is a court order that the family court can make during divorce or civil partnership dissolution. This order decides what happens to property, most often the family home.
Under section 24 of the Matrimonial Causes Act 1973, the court has power to transfer, sell or otherwise adjust the ownership and occupation of property between spouses, to help achieve a fair financial settlement.
In practical terms, a property adjustment order might:
- Transfer the family home from joint names into one person’s sole name.
- Order the sale of a property and set out how the proceeds will be divided.
- Give one party the right to stay in the home with the children for a set period.
Similar powers exist for civil partners under the Civil Partnership Act 2004.
A property adjustment order is usually just one part of a wider financial order dealing with all of the assets which is not something the court looks at in isolation.
When is a property adjustment order used?
A property adjustment order is commonly used where:
- A couple cannot agree who should live in the family home after separation.
- One person wants to keep the home, but the other wants it sold so they can receive their share.
- There are multiple properties, for example buy-to-let properties or a holiday home that need to be divided. Stowe Family Law+2Tollers Solicitors+2
It can also be important where only one spouse’s name is on the legal title, but the other spouse has contributed financially or needs housing security – especially where there are children involved.
Many couples reach an agreement about property with the help of solicitors or mediation. That agreement is then turned into a consent order and approved by the court. The consent order will often contain the property adjustment order alongside other financial provisions.
What can a property adjustment order do?
The court has a wide discretion. A property adjustment order can:
1. Transfer ownership
The court can order that a property is transferred:
- From joint names to one spouse.
- From one spouse to the other.
- To or for the benefit of a child of the family (in limited situations).
Often, the person taking on the property will also take over the mortgage, sometimes with a lump sum being paid to the other party to reflect their share.
2. Order an immediate sale
Sometimes the fairest solution is to sell the family home and divide the proceeds. A property adjustment order can:
- Direct that the property is sold.
- Set out how the sale is to be handled.
- Specify how the net proceeds will be split between the parties.
3. Defer the sale (Mesher-type orders)
In other cases, the court may decide that the home should not be sold straight away. For example, it might be more appropriate for the main carer to stay in the property with the children until they reach a certain age or finish education.
A property adjustment order can therefore provide for a deferred sale. A deferred sale is a transaction where a portion of the payment is made at a later date, after the initial sale is completed. These types of transactions are written up with detailed terms about:
- Who lives in the property in the meantime.
- Who pays the mortgage and outgoings.
- What happens, and how the equity is shared, when the trigger event (such as the youngest child turning 18)
4. Regulate occupation
The court can also make orders about who has the right to occupy a property for a period of time, sometimes alongside other orders such as occupation orders or non-molestation orders where safety is an issue.
How does the court decide what’s “fair”?
The court doesn’t divide property at random. In England and Wales, judges are guided by the factors set out in section 25 of the Matrimonial Causes Act 1973. These include:
- The income, earning capacity and financial resources of each party.
- The financial needs, obligations and responsibilities of each party including their housing needs.
- The standard of living during the marriage.
- The age of each party and the duration of the marriage.
- Any physical or mental disability.
- Contributions made to the welfare of the family, including caring for children.
- The welfare of any minor children of the family (this is the first consideration).
The court’s overall aim is to reach a fair outcome. That does not always mean a straight 50/50 split of all assets. Where resources are limited, the housing needs of the children and the primary carer are often a priority.
Where appropriate, the court will also try to achieve a clean break so that, in future, the parties are no longer financially tied to one another. A property adjustment order is one of the tools that helps achieve that.
How do you get a property adjustment order?
In most cases, a property adjustment order will be part of a wider financial order made during the divorce or dissolution process.
The typical steps are:
- Financial disclosure
Each party provides full details of their financial position including property, mortgages, savings, debts and pensions usually using Form E. - Negotiation and agreement (if possible)
With the help of solicitors, mediation or other non-court dispute resolution, many couples are able to agree how their assets, including the family home, should be divided. - Consent order
Once agreement is reached, a solicitor drafts a consent order setting out the full financial settlement. This may include a property adjustment order (for example, a transfer or sale of the home). The court then considers the draft order on paper. If the judge is satisfied it’s fair, they approve it and it becomes legally binding. - Contested proceedings
If agreement cannot be reached, either party can apply to the court for a financial remedy order. There will typically be a series of hearings before a final hearing, where a judge decides the outcome including whether to make a property adjustment order and in what terms.
Because these decisions can affect your housing security and long-term finances, it’s important to take legal advice early rather than waiting until positions are entrenched.
Why timing and a clean break matter
In England and Wales, there is no strict deadline for applying for a financial order after the divorce is finalised. In some situations, people have brought financial claims years after the marriage legally ended, where no order was made at the time.
Without a court-approved order (often a consent order):
- Your ex may still be able to make claims against you in the future.
- You might also retain the ability to make claims against them.
- There can be uncertainty about who really owns what, particularly the family home.
A properly drafted order which may include a property adjustment order and a clean break clause where suitable can close off future claims and give both parties certainty and peace of mind.
Property adjustment orders and other financial orders
It’s helpful to see a property adjustment order in context. It is just one of several types of order the court can make on divorce, which may include:
- Lump sum orders – where one party pays a set amount of money to the other.
- Spousal maintenance (periodical payments) – ongoing income from one party to the other.
- Pension sharing or pension attachment orders – dealing with rights in pension schemes.
A fair financial settlement often involves a combination of these orders, tailored to the family’s particular circumstances.
Common questions about property adjustment orders
Who can apply for a property adjustment order?
Either spouse or civil partner involved in divorce or dissolution proceedings can apply, usually as part of a wider application for financial remedies.
Do we always have to go to court to get a property adjustment order?
Not necessarily. If you can reach an agreement on what should happen to the property, you can ask the court to approve it by way of a consent order. This is usually dealt with on paper, without you having to attend a hearing. But you still need that court order to make your agreement legally binding.
Can a property adjustment order be changed later?
Once a final order is made, changing it is difficult. In most cases, you would either need a new agreement (approved by the court) or grounds to appeal. That’s why it’s vital to get the terms right first time and to understand the long-term consequences.
Does a property adjustment order cover pensions and savings?
No, pensions and certain other assets are usually dealt with using different types of orders, such as pension sharing orders or lump sum orders. However, the court will look at the whole financial picture when deciding whether to make a property adjustment order and on what terms.
What if we’re not married but own a house together?
Property adjustment orders only apply to married couples and civil partners. If you are an unmarried couple who own a property together, your situation will normally be dealt with under different areas of law (such as trusts and property law). Specialist legal advice is essential in those cases.
How Bromfield Legal can help
Deciding what should happen to the family home is often the most stressful part of a separation. At Bromfield Legal, our experienced family law team in Nuneaton advises clients across Warwickshire on divorce, financial settlements and property adjustment orders, providing clear, practical guidance at every step.
We can:
- Explain your rights and options in plain English.
- Help you negotiate a fair settlement and draft a robust consent order.
- Represent you in financial remedy proceedings where court involvement is necessary.
If you’re worried about what will happen to your home or other property during your divorce or civil partnership dissolution, we’re here to help.
Contact Bromfield Legal today on 024 7638 2343 or use the online contact details on our Nuneaton office page to arrange a confidential discussion about your situation.
