Property Adjustment Orders: How Courts Transfer Property

Part of: Financial Settlement after Divorce

A property adjustment order is a court order that changes who owns property when a marriage or civil partnership ends. It can move the family home into one name, hold property for your children, or change a trust set up for you as a couple (Matrimonial Causes Act 1973, s.24). If the home is the biggest thing you own together, the terms you accept now can shape your family’s life for years. So this page shows what a judge can order and where families go wrong. Our financial settlement after divorce specialists assist and advise at every stage. The page covers the law of England and Wales only.

Reviewed by: Garry Steedman, Family Law Consultant (Divorce, Children & TOLATA), Kabir Family Law

What is a property adjustment order?

The Act groups property adjustment orders under three headings: transfer of property, settlement of property and variation of settlement (s.21(2)). Section 24(1) spells them out as four separate orders. In plain terms, a judge can:

• order one of you to transfer property to the other, to a child, or to someone for a child’s benefit;
• order one of you to put property into a trust for the other spouse, the children, or both;
• change a trust set up for you both as a couple, before or during the marriage, even if you have no children;
• reduce or end either spouse’s interest under that kind of trust.

The family home is usually the focus. However, the order can reach any property a spouse owns, such as a second home, a rental flat or land. Pensions follow separate rules, such as a pension sharing order. The same powers apply when a civil partnership ends (Civil Partnership Act 2004, Sch. 5, para. 7).

The rules change if you never married. Unmarried couples usually rely on a TOLATA property claim instead. Also, a parent can ask the court to settle or transfer property for a child under Schedule 1 to the Children Act 1989.

Transfer, sale or delay: which property order fits?

Most families end up weighing three broad shapes. Each one suits a different mix of income, children and equity.

The right shape depends on your whole financial picture. In other words, a judge looks at the home alongside savings, pensions and income, rather than on its own.

Who can ask the court, and when?

A spouse or civil partner can ask once divorce, dissolution, nullity or judicial separation is under way. The court can make a property adjustment order when it makes the conditional divorce order, or at any time after, whether or not the divorce is final yet (s.24(1)). GOV.UK says it is usually simpler to apply after the conditional order. It also suggests applying before the final order, because a later application can have financial effects, especially for pensions.

From there, the path splits in two. If you agree, a judge can approve your terms as a consent order, and there is usually no hearing. The court fee is £62, and you each give the court a statement of information (GOV.UK: if you agree). Our guide to the financial consent order explains the agreed route.

If you cannot agree, you usually have to attend a meeting about mediation, known as a MIAM, before you ask the court to decide. There are exceptions, for example where there has been domestic abuse (GOV.UK: get the court to decide). Then one of you applies on Form A for a financial remedy order, and the court fee is £321.

What does a judge weigh before moving the home?

The Act sets no fixed split. Instead, the court looks at all the circumstances, and it puts the welfare of any child under 18 first (s.25(1)). It must also consider a list of factors, including:

• each of your incomes, earning power and other resources;
• your needs, now and in the foreseeable future;
• the standard of living before the marriage broke down;
• your ages, and how long the marriage lasted;
• what each of you gave, including looking after the home or caring for the family;
• conduct, but only where it would be unfair to ignore it.

Our guide to section 25 and conduct arguments explains when behaviour can count. The court must also consider whether a clean break is right, so that your financial ties end as soon as is just and reasonable (s.25A).

Other people can have a say too. If the case involves land, the person applying must send a copy to any mortgage lender named in the application, and the lender can reply (Family Procedure Rules, r.9.13). Before it orders a sale, the court must also let anyone else with a share in the property make their case (s.24A(6)).

How does a property adjustment order work, step by step?

Every case is different. Even so, most follow a similar path.

1. Try to agree first. Talking or mediation usually comes first. If you need the court to decide, you normally have to attend a MIAM before you apply.
2. Apply, or send in your agreement. Agreed terms go to a judge as a consent order. Otherwise, the court sets a first appointment 12 to 16 weeks after the applicant files Form A (r.9.12).
3. Share the full picture. You both exchange a financial statement at least 35 days before that first appointment (r.9.14). Our guide to Form E explains it.
4. Work towards a settlement. A financial dispute resolution appointment helps you agree. If you still cannot, a judge decides at a final hearing.
5. Wait for the final order. On divorce, the order only takes effect once the divorce is final (s.24(3)).
6. Complete the move or sale. The legal title then has to change hands, or the sale has to finish. If someone will not cooperate, read our guide to enforcing financial court orders.

A judge makes the final call, so nobody can promise you a result. What you can control is how clearly you set out your needs and evidence.

Before you agree a property adjustment order: are you on track?

Tick what is true for you today. The list helps you spot gaps before you fix any terms.

What can go wrong with a property order?

Most problems start before anyone reaches court. These traps are common, and each one is easier to avoid than to fix.

• Agreeing before you see the numbers. Without full disclosure, you cannot tell whether a share of the home is fair.
• Leaving the mortgage to chance. If the plan relies on one of you taking over the loan, test that early. Otherwise a signed agreement can stall.
• Expecting to change it later. A court cannot usually vary a transfer ordered on divorce, so a poor bargain can last.
• Remarrying before you apply. Once you remarry or form a civil partnership, you cannot then apply for a property adjustment order against your former spouse (s.28(3)).
• Property moved out of reach. A court can stop a spouse selling or giving away property to defeat your claim, and it can set such a deal aside (s.37).
• Loose trigger events. A delayed sale needs clear events or dates, because vague wording can spark a new argument.

The timing of a transfer can also affect tax. GOV.UK explains tax when transferring assets between spouses.

How do our specialists assist and advise?

Our specialists assist and advise from the first conversation. They explain which orders a court could make in your case, and what a judge is likely to weigh most. Evidence matters, so expect practical guidance on the valuations, mortgage details and dates that shape your options. When an offer arrives, a specialist helps you understand what it would mean for your home. If the case goes to court, we help you prepare for each stage.

A free initial consultation is a conversation with a specialist, who gives you initial advice on your circumstances. It does not include drafting or reviewing documents. Before the call, jot down a rough value for the home, the mortgage balance and the date you separated.

Frequently asked questions

General information about the law in England and Wales, not advice on your circumstances.

Expert Tip

Before you agree who keeps the home, ask one practical question: could the person staying pay for it alone, month after month? Many agreements look fair on paper, then stall because the mortgage cannot move into one name. Get a realistic view of borrowing early, and weigh the home against the rest of your finances, not on its own. A property order is very hard to reopen, so the time you spend now pays off.

Iblal Iqbal, Partner & Family Law Strategist