Q&As

A married couple separated five years ago, at which time there was no equity in the former matrimonial home. The spouse who remained in the former matrimonial home has since paid the mortgage on the property. The property has increased in value and there is now significant equity. How would the court approach the division of the equity that has now accrued?

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Produced in partnership with Katherine Illsley of 4 King’s Bench Walk
Published on LexisPSL on 18/02/2019

The following Family Q&A Produced in partnership with Katherine Illsley of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • A married couple separated five years ago, at which time there was no equity in the former matrimonial home. The spouse who remained in the former matrimonial home has since paid the mortgage on the property. The property has increased in value and there is now significant equity. How would the court approach the division of the equity that has now accrued?

Useful guidance on how the court is likely to treat assets which have increased in value post-separation was provided in JL v SL (No 2) (at paras [41] and [42]) as follows:

‘… for those assets which were in place at the point of separation. They remain matrimonial property but the increase in value achieved in the period of separation may be unequally divided. I emphasise may. Obviously passive growth will not be shared other than equally, and there will be cases where on the facts even active growth will be equally shared …’

and:

‘On the other hand there will be cases where the post-separation accrual relates to a truly new venture which has no connection to the matrimonial property or to the assets of the partnership. In such a case the post-separation accrual should be design

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