Multi-generational living and divorce

The rising cost of living in recent years means many families are considering living together to help share living costs and to combat other issues such as loneliness and care needs in old age or help with young children for busy working parents. 

But what happens if there is a relationship break down and subsequent divorce or separation in one of the generations? This is an important consideration to address before moving in together.

In the event of a relationship breakdown, the first consideration will be to look at whether the couple separating was married or cohabiting. Cohabiting couples don’t have the same rights as married couples, so it is important to take legal advice to understand your position if you were cohabiting.

Secondly, consider who are the dependents of the relationship which has broken down and their age and what are their needs until they reach the age of 18. It is important to put the needs of younger children first to establish who will care for them and where they will live.

Next it is necessary to look at the combined assets of the couple divorcing including who owns the property or the respective shares in it, along with other assets such as savings, pensions, business interests etc. A question often asked is can one person’s share of the property be bought by those intending to stay in it, which may allow the multi-generational living to continue?

If it isn’t possible to buy out their share or enough cash to divide assets to ensure everyone’s needs are met, then it is likely the home which is usually the largest asset will need to be sold to fund this.

There are also many other money squabbles which can arise on a relationship break down in a multi generation household. These can include:

• Was a parental financial contribution made to the separating couple to allow them to all live together a gift or a loan.
• Was the property ‘gifted’ by one generation to another to allow everyone to live there.
• Who has paid for property renovations, maintenance and bills during the time everyone has lived together.

Clearly there are many issues which can arise from multigenerational living and the breakdown of a relationship or marriage. 

We offer a one-hour fixed fee consultation at a charge of £200 plus vat.

Get in touch to find out your rights.

Sunita Chauhan can be contacted at s.chauhan@gullands.com