Depending on whether the home is being sold or one party is buying the other out challenges can occur that can sometimes make the process long and difficult.

It is important to know how to manage these issues to remain on amicable terms and gain the best possible outcome for both parties. 

Outlined below are common challenges or disagreements that can arise and how you might troubleshoot these, depending on what option you chose.

Option 1: Marketing the property for sale.

 Finding an agent to represent you both fairly.

Often both parties will have diverging interests. Finding an agent who can represent you both fairly will help ensure the process runs smoothly. Meeting with several agents and getting a market appraisal from them before making a decision will help to indicate who best to choose to market the property.

Sale price and offers.

This is an especially delicate issue, particularly when one party can afford to wait or accept a lower offer due to their financial position being stronger. The first step will be to ensure you both have independent legal advice. This will help cement your position and know what your rights are going forward. It might also help avoid going to Court which can come at even further cost.  

Sale method.

Disagreement can arise as to the method of sale. When a decision is not made, the process can be drawn out. If you have chosen the right agent, this should be something they can help with, meeting both your needs. It is important to consider your agent’s recommendations, as they have the expertise to know what sale method is best for your property.

Option 2: Buying the other party out.

Valuation disagreements.

The very first step advised is to get the property valued by a certified valuer. Not only will this remove any confusion as to the market value of the property but will reduce the risk of unfairness in the transaction by one party.  

Both parties can get their own appraisal from separate valuers which can also lead to further disputes and a third, independent, valuation could be needed.

However, this may also be advised to give parties their own certainty as to the value of the house. You will then both need to agree on a ‘buy out price’ based on factors such as a mortgage and contributions made.

Dealing with outgoings in the interim.

When issues arise regarding the care and maintenance of the house, it is common to come to an agreement that the person remaining in the house or seeking to buy it takes responsibility for this. Other options include getting a third party to mediate disputes around property matters while waiting for sale.  

Applying for orders for sale

When a sale is sought to be sped up by one party due to the other party not wanting to sell or buy the other party’s interest, applications can be made to the Family Court to decide whether the property should be sold and on what conditions.

This can avoid further conflict and can also remove the ability for one party to strong-arm the other. It is unfortunately a more time-consuming and costly exercise.

Placing the property on rental market.

Sometimes if the market is not right for sale, but neither party wants to buy out the other party’s interest or reside in the property, one option can be to lease the property so that outgoings are paid with minimum disruption as to finances.

Sometimes there may be a dispute as to who collects and holds the rental income or how that is used, but this can be avoided through employing a property manager.

Then, when the market improves for sellers, the property can be placed on the market. However, you will need to bear in mind the tenant’s notice period.

It is very difficult to avoid disputes throughout a separation let alone when a property is added into the mix. Ensuring you have considered possible issues that may arise and how to deal with them can help reduce conflict.

Obtaining legal advice can also be beneficial, especially when things are no longer amicable between the parties.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

Shaun Cousins and Brianna Cadwallader

Please note that Rainey Collins is not contracted to provide Legal Aid, other than in the Treaty of Waitangi area.  We therefore are unable to take on any Civil or Family Legal Aid work. If you require Legal Aid in those areas, you can search the list of Legal Aid lawyers on the Ministry of Justice website.