What is a Property Adjustment Order?

A Property Adjustment Order is a court order made during divorce or civil partnership dissolution proceedings, setting out how marital property (e.g., the family home) will be dealt with once the marriage ends. It can specify whether ownership is to be transferred from joint names into one person’s name, if it is to be sold, or whether one spouse can remain in the property until certain conditions are met (such as children reaching 18).

Key Points

• Governed by Section 24 of the Matrimonial Causes Act 1973 for divorces.
• Parallel provisions exist under Schedule 5 of the Civil Partnership Act 2004 for civil partnerships.

2. Why is a Property Adjustment Order important?

PAOs ensure fair division of property and provide clarity on who remains in the home. This can be especially relevant when children under 18 are involved, offering security and continuity.

3. How do you obtain a Property Adjustment Order?

1. Negotiated Agreement: Ideally, you and your spouse will agree on property matters. Your solicitor includes this in the financial consent order, making it legally binding without further court intervention.
2. Court Intervention: If no agreement is reached, the court may issue a PAO as part of the overall financial settlement in your divorce. PAOs are enforceable once the final divorce order is granted.

4. What forms can a Property Adjustment Order take?

• Transfer of Ownership: One spouse’s name is removed from the property, and ownership passes entirely to the other spouse.
• Order for Sale: The property must be sold, with proceeds divided in a specified manner.
• Mesher Order: Defers the sale of the property, often until any children finish full-time education.
• Martin Order: Allows one spouse to remain in the family home for life or until they remarry or cohabit with another partner.

5. Is a Property Adjustment Order legally binding?

Yes. PAOs are part of a consent order—a binding court order—so non-compliance can lead to contempt of court, which carries possible penalties like fines or imprisonment.

6. Do PAOs apply only in divorce?

While they’re most common in divorce, they can also be used for unmarried couples who have a child (under Schedule 1 of the Children Act 1989). However, courts have more limited powers to alter property ownership for cohabitees as compared to married couples.

7. Who can apply for a Property Adjustment Order?

Either spouse (or civil partner) can apply for a PAO if you cannot mutually agree on how the family home or other properties should be handled during divorce or dissolution proceedings.

8. When does a Property Adjustment Order take effect?

It typically comes into effect once the Final Order (legally ending your marriage or civil partnership) is pronounced.

9. Can a Property Adjustment Order be amended?

Generally, once approved, it cannot be varied unless both parties agree. However, if the order involves selling a property and one spouse refuses to cooperate, you can ask the Family Court to help enforce the sale. The court can sign documents on behalf of a non-compliant spouse or otherwise ensure the order’s implementation.

10. Does it apply to property located abroad?

Yes, English and Welsh courts can issue PAOs on foreign properties. However, enforcement of such orders abroad can be more complex, depending on local laws and whether that country recognises English court orders. Seek specialised legal advice for overseas properties.

Need More Guidance? Contact HM & Co. Solicitors
Address: 186 Lower Road, Surrey Quays, London SE16 2UN
Telephone: 02071128180
Email: info@hmsolicitorsltd.com

Our experienced family law solicitors can guide you through every step of applying for a Property Adjustment Order, helping you secure the best outcome for your family’s future.