What is a Mesher Order and how is it obtained?
When a marriage breaks down, there are several financial matters to sort out, including how assets will be divided, how children will be cared for and supported, and what should happen to the former marital home.
The latter is usually a source of concern for the parties and the big problem of how to fund two homes is unavoidable. In situations such as this, a Mesher Order might be appropriate.
What is a Mesher Order?
A Mesher Order, so-called after the eponymous case of Mesher v Mesher and Hall, is essentially a postponement of the exercise of a trust for sale until a named event occurs (usually called a ‘trigger event). This is normally connected with the children of the family.
The order is also sometimes called an ‘order for deferred sale’. The property for which the sale is deferred is usually the house where the parties lived before the divorce. Some of the trigger events may include the following:
The remarriage of the occupying party;
The youngest child of the marriage leaving home or turning 18;
The death of the occupying party;
The cohabitation of the occupying party.
Therefore, the terms of a Mesher Order are that the property will remain in the couple’s joint names until any of the above occurs.
A Mesher Order may be worth considering if you are opting for an amicable settlement and one party wishes to stay in the family home with the children, but is unable to meet the monthly payments or get a mortgage on their own.
Other advantages of the Mesher Order include:
Avoiding the need to immediately sell your family home, helping you to avoid the added disruption and stress of moving house during the emotional impact of a family break-up.
Putting the welfare of your children first, protecting their best interests and minimising stress and disruption to their lives by allowing them to remain in the same home and school environment.
Creating a stable home environment for yourself and your children whilst they are still under the age of 18 or in full-time education.
Securing a home where downsizing or buying another property is not possible or will prove too costly, because another mortgage may not be on the same favourable terms.
Avoiding the circumstances of negative equity by delaying the sale of the property until a more favourable economic and financial situation would make the sale worthwhile.
Allows both parties to stay on the property ladder as you both maintain equity in the house.
If you would like to speak with a member of our Family Law team about Mesher Orders, please call 01202 842929 or email family@mjplaw.co.uk.
