Polly Atkins examines whether a former spouse can be required to pay rent pending the sale of the family home in STEP Journal+

Polly’s article was published in STEP Journal Plus, 23 April 2021, and can be seen here.

Polly Atkins, Associate in our Family & Relationships department, highlights the importance of clear interim arrangements when a family home is to be sold following divorce.

In Derhalli v Derhalli [2021], the Court of Appeal considered whether a former spouse could be required to pay rent while remaining in the property pending its sale. Despite the husband’s argument that his ex-wife should pay rent or vacate the property, the court found that the original financial order implied she could remain rent-free, provided she covered the outgoings.

The judges emphasised that they were interpreting the specific agreement in this case, not setting a general precedent.

This case serves as a cautionary tale about the risks of overlooking interim scenarios in financial orders. Had the parties anticipated a delayed sale, they might have agreed on a rent arrangement after a certain period.

Instead, the lack of clarity led to costly litigation, with the husband inappropriately pursuing possession proceedings in the County Court rather than the Family Court.

With ongoing market uncertainties, such as those caused by COVID-19, it is vital that legal advisors help clients consider and document all potential outcomes to avoid future disputes.

Read the full article on the STEP Journal website [subscription required].