Severance of Joint Tenancy

There are two types of joint property ownership:

• Joint tenants
• Tenants in common

Severance of joint tenancy means changing the ownership of your home from joint tenants to tenants in common.

Reasons to consider severance of joint tenancy:

• Relationship breakdown
• Future consideration of care costs
• Children from a previous relationship

What are joint tenants?

Joint tenancy means that in the event of the death of one of the owners, that person’s share automatically passes to the survivor. This is irrespective of whether there’s a Will or intestacy (no Will). Many couples start out as joint owners because it’s a straightforward way to own a property.

What are Tenants In Common?

Tenancy in common means the ownership of the property is held in entirely separate shares. In the event of the death of one of the owners, that person’s share doesn’t automatically pass to the survivor. The share in the property passes in accordance with the deceased person’s Will or intestacy. This option may be appropriate if one of the owners paid more to buy the property or if there are children from a previous relationship who need to be provided for in the future.

Tenants in common is also an effective way to ensure that only that person’s share would be at risk to any potential care costs in the future. It means the children or beneficiaries can benefit from the other person’s share of the property. But tenancy in common isn’t dissipation of your assets in terms of care costs; it’s a way of legally protecting your whole house from being at risk of care costs should just one of you go into care.

Property ownership solicitors, Alderley Edge, Cheshire

Choosing the right type of joint ownership is an important decision, so it’s essential for you to talk it through with a professional when planning your finances for you and your family.

Our team can provide you with relevant information and can explain your options clearly and simply.