Transfer of Property Ownership After Divorce

How Is Property Ownership Transferred After Divorce?

When a couple divorces, the court may order that a property - often the family home - be transferred from one spouse to the other. This is known as a transfer of property ownership, and it is a common way to divide assets without forcing a sale.

Transfers are typically made under a property adjustment order as part of the financial settlement.

What Is a Property Transfer in Divorce?

A property transfer involves changing the legal ownership of a property from joint names to one party, or from one spouse to the other. This is done using a transfer deed (usually Form TR1), which must be signed and submitted to HM Land Registry.

When Will the Court Order a Property Transfer?

The court may order a transfer when:

• One party is keeping the matrimonial home
• The property is being used to house dependent children
• A clean break is being achieved through asset division

The court’s goal is to ensure fairness and meet the housing needs of both parties, especially where children are involved.

What If One Party Refuses to Sign the Transfer?

If a party refuses to sign, then the court may execute the transfer deed (Form TR1) itself under section 39 of the Senior Courts Act 1981, which will be treated as if it was signed by the relevant party.  

What If the Property Has a Mortgage?

If the property is subject to a mortgage:

• The lender’s consent is required for the transfer
• The receiving party may need to remortgage in their sole name
• If the lender refuses, the court may order the property to be sold instead

Is Stamp Duty Payable on a Property Transfer After Divorce?

No. Stamp Duty Land Tax (SDLT) is not payable on property transfers made under a court order as part of a divorce settlement. Read more on this in our guide, here.

Our expert divorce solicitors can guide you through the legal and financial steps of transferring property ownership after separation. Contact Vardags today for a free initial consultation.

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Frequently Asked Questions

Q: Can the court transfer property ownership after divorce?

A: Yes. The court can order a transfer of ownership as part of the financial settlement.

Q: What if my ex won’t sign the transfer deed?

A: The court can sign it on their behalf under the Senior Courts Act 1981.

Q: Do I need to pay Stamp Duty on the transfer?

A: No, not if the transfer is made under a court order during divorce.

Q: What if the property has a mortgage?

A: The lender must approve the transfer. You may need to remortgage in your own name.