Divorce or separation when you own rental property

Divorce or separation when you own rental property

1. 1

   Married or in a civil partnership?

   YesThe family court can divide all your property, wherever it's held. Carry on below.

   No — unmarriedNo divorce-style sharing. It turns on who owns what: the deeds, any declaration of trust, and what each paid (TOLATA).
2. !

   Don't move anything

   Don't gift, sell, remortgage or transfer properties or divert rent. The court can reverse transfers meant to defeat a claim.

3. 2

   Full financial disclosure (Form E)

   Every property, loan, company share, director's loan and trust interest, with valuations.

4. 3

   How are the properties held?

   Personal namesBuilt up during the marriage: usually starts at 50:50. Owned before, inherited or gifted: usually kept, unless needed or mixed in.

   Limited companyYour shares and director's loan are what's divided — shares, a lump sum, or sales. Valued net of debt and tax.

   In trustCounted if the trustees would likely release it to you; sham trusts are ignored.
5. 4

   Mediation (MIAM), then agree or go to court

   Agree and get a consent order, or apply on Form A: first hearing, settlement hearing (FDR), then a final hearing.

6. 5

   Get the financial order before the final divorce order

   Without an order, financial claims stay open — even years later.

   ⏱ Divorce: 20 weeks + 43 days minimum

7. 6

   Transfer the properties

   CGT: no gain, no loss within 3 tax years of separating, or any time under the order. Stamp duty: exempt under the order. Lender consent needed to change the mortgage.

8. 7

   Tell the tenants

   Tenancies carry on. Give the new landlord's name and address in writing and update the deposit scheme.

9. ✓

   Finances settled

   Talk it through with Wala, then speak to a family solicitor.

Checked against official sources on 2 November 2026 · General information, not legal advice · landlordwala.com/diagrams/divorce-portfolio