Divorce is rarely straightforward, but when a family home accommodates multiple generations—grandparents, adult children, or other relatives—the legal and practical complexities multiply significantly.

The intersection of family law, property rights, and multi-generational living arrangements can lead to difficult questions: Who has a right to remain in the home? Can a property be sold even if elderly parents are living there? How do informal financial arrangements affect entitlement? This article explores these issues, highlighting the potential complications that arise when the family home is more than just the marital home.

What is a multi-generational home?

A multi-generational household is one where multiple generations of a family—children, parents, grandparents—live together under one roof. This arrangement is becoming increasingly common thanks to economic pressures, housing shortages, and rising care needs for elderly relatives. According to recent statistics from the Office for National Statistics (ONS), around 3% of UK households are multi-generational, with a significant number of those encompassing older relatives dependent on the family home.

When a divorce happens, the legal focus often centres on the division of matrimonial assets, which includes the family home. However, in multi-generational households, the presence of other residents complicates matters. The interests of these individuals—whether financial, residential, or emotional—must be considered, even if they are not legally party to the divorce itself.

Rights of non-marital residents

One of the most common scenarios is that elderly parents or adult children live in the matrimonial home without having contributed financially to its purchase or mortgage. Here, such individuals are generally classified as occupiers with permission or licensees. They do not hold a proprietary interest in the property unless there is evidence to the contrary.

Key points include:

  • Occupancy rights: A person living in a property without financial contribution does not automatically gain the right to remain there after divorce. The court may, however, consider their housing needs under certain circumstances, particularly if the occupants are vulnerable adults (elderly or disabled).
  • Human rights considerations: Article 8 of the European Convention on Human Rights protects the right to respect for private and family life. Courts sometimes weigh this when elderly parents are at risk of eviction following divorce. This does not provide a guaranteed right to remain but may influence the timing or conditions of eviction.

Adults with informal financial stakes in the property

Some relatives may have contributed to the property, such as helping with the deposit or making mortgage payments, but without formalising their interest in writing. In these cases, the law recognises two main doctrines: resulting trusts and constructive trusts.

  • Resulting trusts: If a family member contributed directly to the purchase price, the law may infer a proportional ownership interest, even if not formally documented. This interest can be claimed in divorce proceedings and may affect the division of property.
  • Constructive trusts: If there was an agreement—explicit or implied—between the property owners and another family member, and that individual relied on this agreement to their detriment (for example, contributing to renovations or paying part of the mortgage), a constructive trust may be recognised. This can formalise an interest even without a written agreement.

The practical effect is that informal financial contributions may entitle a relative to remain in the property or receive compensation during divorce settlements.

Divorce proceedings and the family home

When a divorcing couple cannot agree on how to deal with the family home, the family courts can issue one of two main types of orders under the Matrimonial Causes Act 1973:

  • An order for sale directs that the property be sold, and the proceeds divided between the parties according to their respective shares as agreed or in some other shared determined by the court.
  • In certain circumstances, one party may be allowed to remain in the home, sometimes temporarily, especially if children or vulnerable relatives are involved. However, this tends to rely on whether it is affordable for the divorcing party to remain living in the property.

The presence of multi-generational occupants complicates this decision:

  • Children: If children live in the home, especially if their schooling or stability would be disrupted by a sale, courts may delay or restrict a sale.
  • Non-marital adults: Elderly parents or adult relatives typically have fewer protections. Courts may take their needs into account but are not legally obliged to prevent a sale.

Financial stakes of non-matrimonial residents

Where relatives have a formal financial stake in the property, the situation is relatively straightforward:

  • Their ownership percentage is respected in any sale.
  • They can claim their share of proceeds or negotiate to retain their interest through buyouts.
  • The court will not generally force a sale to benefit the divorcing spouses if it prejudices other owners’ rights.

Informal or Undocumented Stakes

Where a family member has contributed informally or without documenting their financial contribution:

  • Evidence of contributions is vital — bank statements, receipts, or witnesses can support claims of beneficial interest.
  • Courts may recognise an equitable interest through constructive trust principles.
  • Disputes often arise over the exact share owed, especially when contributions were non-monetary (for example, long-term caregiving).

If a relative has neither a formal nor an informal financial stake, their legal claim to remain is weak. Any right to occupy is usually based on licence or permission, revocable by the property owner or by court order during divorce proceedings.

Mediation and family agreements

Where possible, families should be encouraged to formalise arrangements before their living circumstances change. This could include:

  • Written agreements on occupancy rights
  • Deeds of trust acknowledging financial contributions
  • Setting out clear plans for care and housing for elderly relatives

Mediation can be particularly effective in resolving disputes that involve multiple generations, as courts prefer negotiated solutions to forced sales that disrupt lives.

Local authority and social services involvement

In cases where elderly or vulnerable relatives live in the property, social services may need to be involved if a forced sale or eviction would render them homeless. While this does not prevent a sale, it can influence the court’s timing and conditions.

Bankruptcy and property sale

In extreme cases where one spouse faces bankruptcy, the property may be subject to sale by creditors, regardless of multi-generational occupancy. Courts still aim to balance the needs of dependents, but financial realities can override informal or vulnerable occupancy claims.

Practical recommendations for multi-generational living

  • Document contributions: Encourage all contributing family members to formalise their financial interests in writing.
  • Consider long-term care needs: Take elderly or vulnerable residents’ needs into account when negotiating settlement agreements.
  • Use mediation: Multi-generational households benefit from mediation to prevent long-term disputes and preserve family relationships.
  • Seek legal advice early: Both divorcing parties and non-marital residents should obtain legal advice regarding occupancy rights, constructive trusts, and potential claims.
  • Plan for housing transitions: Identify alternative accommodation for vulnerable relatives before selling the property to reduce court intervention.