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Navigating Pension Division and Retirement Funds in Divorce

1. Introduction
2. Understanding Pension Division
3. Types of Pensions Affected
4. How Pensions Are Divided
5. Key Considerations
6. Common Pitfalls
7. Conclusion

Introduction

Worrying about how assets will be divided when you’re going through a divorce are keeping you up at night.

Divorce in itself is hard. While you’re reeling with the end of your marriage you’re probably going to be faced with sorting out the finances too. One of the most critical yet overlooked aspects is the division of pensions. While people tend to focus on immediate financial concerns, such as property division or child support, pensions and retirement funds can represent a significant portion of a couple’s wealth. Understanding pension division and divorce pension rights is essential to ensuring a fair financial settlement that secures both parties’ futures.

I get it. You want some certainty because your world has been turned upside down and you are probably playing various worst-case scenarios in your head right at this moment. It could be 3am right now and you’re doing your research because you can’t get a straight answer online, can’t get hold of your solicitor and can’t discuss it with your (soon to be ex) spouse.

This comprehensive guide explores the legal and financial aspects of pension division, the different methods available, key considerations, and common pitfalls to avoid.

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Understanding Pension Division

Let’s start with basics. England and Wales, pensions are considered part of the marital assets, just like the family home, savings, and investments.

This means they are subject to division as part of a financial settlement. The principle behind this is simple: marriage is a partnership, and both partners contribute in different ways, whether financially, emotionally, or through responsibilities such as raising children. Consequently, both should receive a fair share of the pension accrued during the marriage.

As I mention elsewhere in just above every divorce, you can’t `ring fence’ pensions or anything else you brought into a marriage. I mean…it does happen but it’s very rare and I’m going to be honest with you – if you think they’re going to be taken out of the equation in most situations you’re almost certain to be disappointed.

However, pension division isn’t always straightforward. The rules and methods for splitting pensions can vary depending on the type of pension, the couple’s financial circumstances, and any agreements they reach.

I need to point out that pensions don’t have to be divided at all. They’re an asset like anything else – their value goes in the `matrimonial pot’ – and it’s possible that this value is what is split rather than the pension itself. Think along the lines of `You keep the entire pension and I’ll get 40%/50%/whatever of the value of it in another part of the settlement’. Or to put it another way – if a pension is worth, say, £100,000 and the court decides to split assets 50/50, one person gets to keep that pension entirely while the other one gets £50,000 in cash, the value of a house or something else.

I’ll go into how you get to this position in detail later.

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Types of Pensions Affected

Not all pensions are the same.

Their differences all impact the part they’ll play in a divorce settlement. Understanding their differences is key to achieving a fair settlement. The types of pensions that may be divided in a divorce include:

• State Pensions – While the basic State Pension itself cannot be shared, additional State Pension benefits might be subject to division.
• Workplace Pensions – These can include defined benefit pensions (final salary schemes) or defined contribution pensions (pot-based schemes where contributions are invested).
• Private Pensions – Individually arranged pensions, including self-invested personal pensions (SIPPs), also fall under pension division.
• Public Sector Pensions – These are often valuable and come with special rules, especially for members of the NHS, police, teachers, and armed forces.

To be honest, the complexity can be a bit of a mine field: Your average family law solicitor may be an expert on the 1989 Children Act or 1973 Matrimonial Causes Act but they’re probably not going to know about the intricacies of the financial sector and the characteristics of various pension types.

Nonetheless, all of these types need to be factored in. This can make things even more confusing when you realise that it’s far from uncommon for someone to have more than one pension and of different types too.

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How Pensions Are Divided

The division of pensions in divorce is based on fairness, though this does not always mean an equal split. The court has a wide range of options open to it to make things as fair as possible (although of course…if it’s imposed on you, you may well not feel that it is fair.

Several methods can be used to divide pensions, each with its own benefits and drawbacks. This includes:

1. Pension Sharing Orders

A pension sharing order allows for a clean break. The pension is divided immediately, with a percentage transferred to the ex-spouse, who then holds their share independently. This method ensures that both parties have control over their pension funds and can make independent decisions regarding investment and withdrawal.

Pros:

• Provides a clear, immediate division.
• Allows financial independence post-divorce.
• Ensures pension security for both parties.

Cons:

• Requires a court order, which can involve legal costs.
• May result in a lower pension for the party giving up a portion.

2. Pension Offsetting

With pension offsetting, the value of the pension is offset against other assets. For example, one spouse may keep the pension while the other takes a larger share of the family home or savings.

Pros:

• Avoids the complexity of dividing a pension.
• Provides flexibility in settlement negotiations.

Cons:

• Requires accurate pension valuation.
• Can be unfair if pension values are underestimated.

3. Pension Attachment (Earmarking) Orders

This method, also known as earmarking, means that a portion of the pension benefits will be paid to the ex-spouse when the pension holder begins to draw their pension. However, the pension remains in the original holder’s name, and the receiving spouse has no control over when it is accessed.

Pros:

• Allows for a division of pension income.

Cons:

• No immediate access to funds.
• Loss of payments if the pension holder dies before retirement.
• No financial independence for the receiving spouse.

As always, it has to be pointed out that these are things the court can impose. It’s quite possible for divorcing couples to agree whatever arrangement they like. The court will always prefer people work things out between themselves. Because if it’s your idea (or you’ve agreed to it) you’re more likely to stick to it and be happy (relatively speaking) than you would compared to a court ordering something regardless of what you think.

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Key Considerations in Pension Division

Valuing Pensions Accurately

One of the biggest challenges in pension division is valuation. It’s fair from unknown for financial settlements to help up because of delays in getting this crucial information.

Pensions are complex assets, and their true worth isn’t always reflected in simple statements. The Cash Equivalent Transfer Value (CETV) is often used, but this may not fully represent the actual benefits. Defined benefit pensions, such as final salary schemes, can be particularly difficult to value correctly.

Consulting a Pensions on Divorce Expert (PODE) can help ensure that valuations are accurate and fair.

The Impact of Divorce on State Pensions

State Pensions are often overlooked in divorce settlements. While the basic State Pension cannot be split, additional State Pension entitlements can sometimes be adjusted, particularly in cases where the marriage lasted a long time.

If a spouse has lower National Insurance contributions due to career breaks, they may be able to claim National Insurance credits to boost their pension entitlement.

Tax Implications of Pension Division

Different methods of pension division can have significant tax consequences. For example, pension sharing does not usually trigger immediate tax liabilities, but the way funds are accessed in the future could impact taxation.

Seeking financial advice can help you avoid unexpected tax bills down the line.

Public Sector and Armed Forces Pensions

Public sector and military pensions often come with specific rules regarding pension division. These pensions may be particularly valuable and require specialist advice to ensure fair division.

Pensions can add a huge layer of complexity to a finance case – even more than child matters – that see too many financial settlement cases dragged out over months (and sometimes years!)

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Common Pitfalls in Pension Division

People often forget about pensions. Or don’t realise they’re relevant, worth discussing or even count based on a misunderstanding of the law or getting bad advice from people who are basing it on a lack of knowledge of the law.

Here are some of the pitfalls:

1. Ignoring Pensions Altogether – Many people focus on immediate assets like the family home but forget that pensions may hold more value.
2. Accepting an Unfair Settlement – Without professional advice, some individuals agree to settlements that leave them financially vulnerable in later life.
3. Failing to Consider Future Needs – A settlement that seems fair now may not be suitable in retirement.
4. DIY Divorce Risks – Trying to handle pension division without legal support can result in costly mistakes.

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Conclusion

Pension division is a crucial part of any divorce settlement, and understanding your divorce pension rights ensures that both parties receive a fair outcome. Whether through pension sharing, offsetting, or earmarking, the goal should be financial security for both individuals moving forward.

Taking the time to obtain accurate valuations, considering future needs, and seeking professional guidance will help ensure that your financial future is protected after divorce.

Did you know the most recent ONS government figures on marriage and divorce show that the number of people to remarry in the UK has remained largely the same since 2019? In fact, the number of people to marrying more than once remains quite high. Over 14% of marriages involved both partners remarrying while 17% of newlyweds, a least one of the partners had been previously married. That’s nearly a third of couples (32%) combined where at least one of the partners has been married before.

Amidst all the excitement of a marriage though, one thing that people often forget to revisit or consider is their will. However, if you want anyone other than your current spouse to inherit the majority of your property when you pass away, making a will after remarrying is essential.

Our latest blog provides valuable insights into the realm of marriage and estate planning.

Marriage and inheritance law

Alarmingly, “recent studies reveal that 59% of UK citizens have yet to create a will, with the number rising to 65% among individuals aged 45 to 54” (source: Legal and General)

Yet, by creating a will, you can utilise tax planning strategies to reduce the inheritance tax for your beneficiaries. This includes capitalising on exemptions and reliefs like the nil-rate band, residence nil-rate band, and charitable donations.

This advice is for England and Wales.

A will also gives you control over who inherits according to how your estate is divided up. Without one, assets are distributed according to intestacy rules. Only married or civil partners and some other close relatives can inherit under the rules of intestacy. Your spouse will get all of your personal property and the first £270,000.00 of your inheritance. (This will change to £322,000.00 on 28th July 2023) More involved processes are employed to decide how your estate will be allocated when its value reaches £270,000.00. You can read more here on ‘Who inherits if someone dies without a will?’’

What will happen to my will if I remarry?

For anyone with a will then it’s worth noting that getting remarried nullifies the will. To avoid this happening, before marrying, ensure your will contains a clause from your solicitor that interprets the terms as if you are already married. Making a new will soon after getting married though is advised.

Assets and second marriage

Assets involving second or blended families are rarely simple due to the numerous factors that must be considered, such as:

• The overall wealth of your family
• Age of any minors involved
• The age or health of your current spouse or partner
• Your former partner’s age and health
• Retirement benefit
• Other people from whom your children could inherit

This is why we recommend speaking to a legal representative who can guide you through the process.

Can children from a previous marriage contest a will?

The adult children from an earlier marriage may feel betrayed if a will is drafted but does not provide for them, and they may be able to file a claim against the estate for “reasonable provision”.

“Reasonable provision” is the fair financial arrangement left in a will for those who were financially dependent upon the writer.

Can a child be excluded from a will in the UK?

Current inheritance laws would allow your new spouse to inherit all, if not most of your possessions, instead of children from a previous marriage. That is why it is important to make a new will soon after you get married to ensure you are in control of your own inheritance planning.

Who can help me make a will for my second marriage?

Thomas and Thomas Solicitors have a dedicated team who specialise in providing professional legal services for wills and inheritance tax matters, and can work through the estate planning process with you, step-by-step, offering a no-obligation discussion.

With a wealth of experience in handling complex issues related to estate planning, asset protection, and inheritance tax planning, Thomas and Thomas Solicitors are committed to protecting your interests and achieving desired outcomes.

In the first three months of 2023, the Family Court saw 69,208 applications for probate grants, up 12% compared to the first quarter of 2022. Notably, the court managed to issue over 50,000 probate grants during this period. Furthermore an unprecedented 89% of applications, and 90% of grants, were processed digitally, signifying the continual shift to the court’s online system.

While the courts are making headway, they remain inundated with a growing number of applications, as it has also become apparent that a significant portion of the population is neglecting to establish a will, putting more pressure on the system.

Recent surveys have unveiled that a staggering 59% of UK citizens have not created a will, and this number rises even higher to 65% among individuals aged 45 to 54. The absence of a will not only complicates the inheritance process for loved ones but also puts more strain on the courts.

This blog explores in more detail probate and its significance in managing and distributing assets of someone that has died, delving into the scenarios where probate is required and emphasising the need for validating the will, and appointing an authorised person to manage the estate.

What is probate?

When someone passes away, their assets (money, property, and belongings) are called their “estate.” Probate is the legal process of managing and distributing this estate, which includes collecting owed money, paying debts (like taxes), and dividing the remaining assets among beneficiaries. You should not make any financial plans or put a property on the market until you’ve got probate.

When is probate required?

Probate validates the will (if available) and appoints the person authorised to manage the deceased’s estate. The executor of a will is typically the person appointed by the deceased (testator) to administer the estate according to the terms of the will. The testator can choose anyone they trust to be their executor, not necessarily the next of kin.

If the deceased did not name an executor in their will or if the will is deemed invalid, the next of kin might have the right to apply for probate and become the administrator of the estate.

The individual appointed as the executor in a will is responsible for managing the deceased person’s estate based on the will’s provisions. The testator has the liberty to select anyone they trust as their executor, without requiring them to be the next of kin.

If the deceased person did not designate an executor in their will or if the will is declared invalid, the next of kin may have the right to seek probate and assume the role of estate administrator. A Residuary beneficiary can also step up to administer the estate.

When a person passes away without leaving a valid will (intestate), the estate’s distribution follows intestacy rules. In such circumstances, an administrator will be appointed to oversee the estate’s distribution, functioning similarly to an executor’s role.

To handle the assets and distribute the estate, both the executor and the administrator must first obtain a grant of probate or a grant of letters of administration, respectively. These grants confer legal authority to manage the deceased person’s assets and fulfil their wishes or carry out the estate’s distribution in accordance with the law.

What is a grant of probate?

A grant of probate is a legal document that allows the holder to access private information about the deceased, such as bank accounts, as well as to resolve outstanding tasks like debts. This is usually the next of kin or appointed executor. It’s worth noting that this grant is only ‘of probate’ if the person who died had a will. If they didn’t have one, then it’s called a grant of letters of administration, and must be applied for.

Regardless of whether the deceased had a will, a grant document allows the holder to deal with the deceased’s estate. This can include everything from debts to assets, although when it comes to distribution, it must strictly follow the instructions in the will. If there isn’t a will, the law determines who will get the assets.

Applying for a probate if there is a will

The person named as an executor in the will can apply for probate. This is still true even if they were only made an executor in a revision of the will (a ‘codicil’). It’s common for the deceased to have told them in advance so that they’re aware of the responsibility and will prioritise it when the will-writer passes away. An executor is not entitled to any inherited assets by taking on that role.

Applying for probate requires the will to be physically included in the probate application. Copies of any form do not qualify, and the version of the will being sent must be the most recent and updated version. Ideally, the deceased should have informed the executor about the location of their will. It may not be in their home – the document could be held by a solicitor’s office or the national probate registry in Newcastle, for example.

There can be multiple executors to deal with a single case of probate. If desired, the right to be an executor can be forfeited. This can also be done permanently if the potential executor has no interest, or capacity, to apply in the future. Probate is a crucial legal process that manages the distribution of assets after someone’s passing. Understanding probate requirements, whether with or without a will, ensures a smooth transition of assets. Seeking advice from qualified probate solicitors, like Thomas and Thomas Solicitors, can be valuable. Overall, comprehending probate empowers individuals to plan for the future and simplify estate management.

If you are looking into probate or need legal advice on a related matter, don’t hesitate to contact Thomas and Thomas Solicitors today for a no-obligation discussion. Our team of probate solicitors are here to help.

Are you facing a legal disagreement or problem? We know that dealing with legal matters can feel overwhelming, especially if you’re not familiar with the world of law. 

In just the first three months of 2023 there were 443,000 civil litigation County Court claims lodged, the highest number for three years according to data from the Civil Justice. 89% of these are money and damages claims, up 8% compared to the same period as last year, while non-money claims are up 10% compared to the same months. But what exactly is civil litigation? 

What is civil litigation?

Civil litigation and civil law is the process of solving legal disagreements between people or businesses using a ‘litigator’. It handles non-criminal conflicts, covering various matters from family and property disputes, arguments over money, and contract breaches. 

A dispute is an umbrella term for issues that result from an unfulfilled task or an expectation that was not met when there was a legal obligation to do so. This can range from anything from unpaid bills to defective products. Litigation is the process of resolving these disputes. 

Furthermore, in civil litigation, one side seeks compensation (usually money) for harm or things that weren’t done as promised (a dispute) by filing a lawsuit with the litigator where the matter can be handled in court. These conflicts can be settled with the help of the litigator in various ways such as through a trial, meetings or through discussions with mediators or arbitrators. 

13 types of civil litigation

Litigation covers a range of areas. Be sure to hire a legal representative that specialises in the relevant practice area because the process may differ depending on the dispute. The most common areas are:-  

1. Personal injury 
2. Medical malpractice 
3. Marital law 
4. Intellectual property 
5. Employment and labour 
6. Educational law 
7. Tenancy disputes 
8. Product liability 
9. Environmental law 
10. Construction issues 
11. Real estate 
12. Anti-trust law 
13. Worker’s compensation 

It is important to know that criminal charges are not resolved under civil litigation. As laws are broken, criminal litigation is brought by the state, while civil litigation is a private lawsuit between two parties. 

Dealing with civil litigation and its process

Within the jurisdiction of England & Wales, there are five stages to civil litigation that are prescribed by court rules. It’s important to ensure that any litigation matter follows these in this particular order:-  

• 1.) Pre-action Protocol

  A party’s claim for a dispute must comply with CPR (Civil Procedure Rules). This includes sending a letter of claim to the other party and giving them a chance to respond. Parties are expected to engage and make an effort to resolve the dispute without involving the court, as civil litigation is a last resort. If no resolution is reached then civil litigation action is taken.  

• 2.) Exchange of Statements

  The claimant issues a Claim Form which sets out their case and states the resolution they seek, such as monetary compensation. Once this is issued by the court, the defendant will have 14 days to file an Acknowledgement of Service. This is called the ‘Defence’. The court will then govern proceedings from this point on.  

• 3.) Exchange of Evidence

  This is usually the first time that the parties appear before the court. Their representatives should have prepared documents and evidence for disclosure at the upcoming trial. Each party will be required to exchange witness statements under the timetable set out by the court. This can also include the exchange of ‘expert evidence’ – unbiased evidence given by an expert in the dispute’s legal area. 

• 4.) Trial

  To ensure that both parties can attend the trial, they should have provided dates which they cannot make so that the court chooses a day that works for both sides. During the trial, the court will witness evidence and hear legal submissions. Judgement doesn’t usually happen during the trial. Instead, there will be a second hearing at court later on to announce the decision made.  

• 5.) Post-Trial

  After judgement is announced, the party that was not in favour will be ordered by the court to fulfil any judgements made within a set period. However, they do have 14 days to appeal for a case review after the dispute was resolved. 

Do civil cases always go to court?

Civil litigation is considered a last resort both for the sake of the court’s time as well as the amicable outcome of a private dispute.  This is why the parties must demonstrate that an effort was made to engage and find an ADR – an Alternative Dispute Resolution before the case reaches the courts.  

Thomas and Thomas Solicitors is a friendly, local law firm that has a unique insight and an inclusive approach to clients with years of experience. With a team of specialists in their specific legal field, the firm offers a range of legal services, including both civil litigation and criminal law.

In the ever-evolving landscape of the UK legal system, certain cases shape the course of legislation and set crucial precedents for future judgements. Join us as we journey through some of the most impactful law cases in the UK. By delving into these legal battles in recent history, we offer a glimpse into the intricacies of the law as well as the marks they leave in society and the judicial system.

Injunctions exposed by the internet

The beginning of the 2010s was a strange time. Social media was rapidly going mainstream, injunctions were all the rage, and the extramarital engagements of football celebs were a popular scandal. However, the case of Ryan Giggs’ injunction against a tabloid newspaper stood out.

In April 2011, the footballer sought to prevent The Sun from publishing claims that he had an extra-marital affair. However, his wish to stay anonymous was short-lived – the gagging order was flouted by thousands of people on Twitter. This became one of the first prominent cases where the law had to react to the age of social media that we were entering.

The case grew even more farcical when an MP used his parliamentary privilege to name Giggs in the House of Commons itself when he was meant to have anonymity. Between this and the Twitter gossip, Giggs ultimately consented to the removal of his injunction’s anonymity in February 2012.

Snail Beer

A court decision was credited with laying the foundations of negligence in common law worldwide… all thanks to a snail. Quite the legacy! Donoghue v Stevenson, also known as the ‘Paisley Snail’ or ‘Snail in a Bottle’ case, was a 1932 debate when Mrs. Donoghue was drinking a ginger beer in a café in Paisley, Scotland. Little did she know that an unfortunate snail was decomposing inside the bottle, and subsequently made her ill.

As a result, Mrs. Donoghue sued the beer manufacturer. The House of Lords held that the manufacturer had breached its duty of care to Mrs. Donoghue as a consumer, resulting in Donoghue winning the case as well as making a full recovery. We can’t say the same for the snail, sadly.

Before this case took place, liability for personal injury was quite restrictive. There had to be physical damage inflicted directly or indirectly, but a noxious substance, like ‘the snail’ beer, was defined by neither trespass. This meant that from the orthodox perspective, Mrs. Donoghue had no sustainable claim, but the court’s decision created a new kind of liability.

Manslaughter under the influence

Another law-defining case that took place in 1967, R v Lipman helped establish what could be used as a defense in English criminal law. It forced the court to deal with the issue of unintentional murder, specifically committed under the influence.

In this case, a couple that regularly partook in recreational drugs, used LSD. The man hallucinated, claiming that he was being attacked by snakes, and while defending himself from these imaginary terrors, he strangled his partner. The police quickly saw the evidence of his guilt, but he claimed that he had no intention of murdering her.

The man was eventually found guilty despite his intoxication, as the court found that by creating a reckless situation with LSD, he had also created a risk that “ordinary sober and responsible people would recognise”. Cause vs intention is a timeless debate that even today is taken on a case-by-case basis in the court of law, but this decades-old tragedy still defines whether a person’s voluntary intoxication could be used as a defense against manslaughter.

Splashing civilians

In January 2014, a 22-year-old driver in Essex faced court summons and a £50,000 fine for driving through a puddle. Why? While doing so, he splashed a mother and her two children. Debbie Pugh was convinced that the driver had done it deliberately because he could have easily avoided the water.

Claims are one thing, but witnesses are another. To the driver’s bad luck (and Pugh’s good fortune!) a police officer was driving behind all of this and seeing the whole thing, PC Mark Hercules pulled over the driver. Officially, the driver was reported for careless driving under violation of Section 3 of the Road Traffic Act upon grounds of driving ‘without reasonable consideration’. According to the Crown Prosecution Service policy, this included ‘driving through a puddle causing pedestrians to be splashed’.

While some cases are isolated incidents in legal history, others become solicitor folklore and the basis of our profession. Fascinating cases like the Paisley Snail and R v Lipman prompt the law to evolve and adapt to new scenarios, becoming milestones in our profession. They reveal insight into the laws that we take for granted, and how they may have had to be created in the first place.

Whatever your legal case, here at Thomas and Thomas Solicitors we can help. We offer a range of legal services, from conveyancing to probate and criminal law on

In this blog, we’ll unravel the intricacies of property co-ownership, specifically the difference between ‘Joint Tenancy’ or ‘Tenants in Common’, and how these choices can profoundly affect your ownership experience. Did you know that there are significant legal and financial differences between both?

How does a Joint Tenancy work?

Property ownership can be shared in two different ways – ‘Joint Ownership’ and ‘Tenants in Common’.

Property can be purchased by any kind of pairing, such as spouses or business partners. However, when this purchase is made, it’s important that the legal title under which the property is held, is clear. This is because future contingencies must be considered, and these will differ between circumstances (like whether the joint owners are personally or professionally related).

Joint Ownership/Joint Tenancy

‘Joint Ownership’, which is also known as ‘Joint Tenancy’, considers both partners the legal owner. However, when one partner passes away, the property remains with the surviving party. This is because the deceased’s ‘interest’ disappears, and nothing needs to done other than to record the death. The property cannot be inherited by the deceased’s relatives because the property still has a living legal owner, this being the co-owner that survived them.

As joint tenants you have an undivided share of the whole property. Up to four people can own the same property. (you cannot have more than four parties registered at the Land Registry).

Tenancy in Common

‘Tenancy in Common’ considers the property to be split between its owners as separate percentages known as shares. These shares do not have to be equal, which means one party could have a much higher share than the other. Because each party is only legally entitled to their own percentage, that share will be inherited by next of kin. Thus, the surviving co-owner of the property will not get this share by default.

For ‘Tenants in Common’ it is sensible and sometimes necessary to document the precise agreement between the owners. This agreement is best recorded in a formal trust deed.

Joint Tenancy versus Tenants In Common

The ideal form of ‘Shared Ownership’ depends on the co-owner’s circumstances and their individual interests.

‘Joint Ownership’ has an appeal for being convenient and simple, leaving minimal paperwork in the event of a death when it comes to who now owns the property. ‘Joint Ownership’ may be preferable if a property owner does not wish for their share to be inherited by their next of kin and would prefer the property to remain with their co-owner. This is often why married couples are in ‘Joint Ownership’ so that the property remains within the marriage by law.

‘Tenancy in Common’ is usually recommended by solicitors because it gives each co-owner more agency when it comes to their share. When a property is split unevenly for example, the party with the larger share may not wish for all of it to go to their co-owner. This is often the case in circumstances such as unmarried couples and business partners where events can change. For example, a business property co-owner may wish for their share to go to their family instead of their partner.

What happens if a shared property owner passes away?

In the event of a shared property owner dying, ‘Tenants in Common’ is recommended if they would not wish for their share to automatically go to their co-owner. A remarried parent may wish to bequeath their share to children from their previous marriage and not their new spouse.

‘Tenants in Common’ may also reduce potential inheritance liabilities, as a party will have greater autonomy over what would be inherited by their next of kin and, as a result, more control over the consequential inheritance tax.

Overall, a good rule of thumb for choosing ‘Tenants in Common’ is when the co-owners will be making unequal contributions toward the property, or there is no positive reason to consider ‘Joint Ownership’.

Thomas and Thomas Solicitors understands that buying or selling a property can be one of the most important financial commitments you will make in your lifetime, and we are here to ensure that the process is handled seamlessly. Our solicitors will guide you through every step of the process.