Is the tenancy in which the title of a house is held severed on divorce?

[John Simpson]

I have been divorced from my wife for 4 yrs but she still lives in the property (value say £700,000). We bought the house in joint tenancy which usually means that on death it would vest automatically in her name and not form part of my estate for death duty purposes. We have an understanding that when I retire (by which time my youngest will be 20) we'll sell and she'll get 60% and me 40%. We've never had a financial agreement drawn up and legalised. My wish is that if I died she'd get to keep the family home and hence why we've left it in joint names under the original joint tenancy but I read somewhere that on divorce all tenancies are severed? Is this true and why? After all if I'd bought the house with a sibling or indeed a friend and decided to buy in joint tenancy rather than the more usual tenants in common, they'd get to keep the whole thing IHT free wouldn't they? p.s. my estate inc the 40% would be say around £750,000.

Likewise I have a joint life policy with her where once again the joint policy holder as long as they have an insurable interest at the time the policy was taken out (it's always presumed a husband and wife do) gets to keep the proceeds of a the policy on death of the other party tax free. I assume that stays the same as there's no tenancies involved?

 

[mf1]

Are you in England? You are using the £ symbol. This is an Irish site so the law is not necessarily the same.

Here, Divorce does not sever the tenancy but it severs your spousal entitlement to tax free inheritances! You are strangers in blood and CAT would be payable on any inheritance by a survivor. As it would if the other owner was a sibling or friend.

mf

 

[John Simpson]

thanks.