Occupational Rent
Occupational Rent
When couples separate, one of the most common sources of tension is the family home. If the property is jointly owned but only one person remains living there, the question arises: should the non-occupying owner be compensated? That’s where occupational rent comes in.
What is occupational rent?
It’s rent, as it says, but as a form of compensation paid by one co-owner of a property to another when they live in the home alone. It’s not automatic and it will depend on the specific circumstances for the parties, and can be decided by a court.
When can it be claimed?
Occupational rent is usually considered during financial proceedings following divorce or separation. It may be awarded if:
The court will look at fairness, the reason for the exclusion, and whether children were living in the home.
What is “Constructive Exclusion”?
Constructive exclusion doesn’t just mean when someone is physically locked out of property, it can also mean they were made to feel they couldn’t reasonably live in the property anymore. This could include:
If someone leaves the home because they feel they have no choice, the court may treat that as an exclusion.
How is rent in these circumstances calculated?
There’s no rigid formula, however, courts will often start with the market rental value of the property and divide it based on ownership shares. For example:
Will it be backdated?
In some cases the court will consider backdating such payments. If the court finds that one party was unfairly excluded, it may award occupational rent from the date of departure. However, this is discretionary and will depend entirely on the facts of the individual case.
Important to note:
We’re available to discuss your specific circumstances. You can either Ask A Question, or contact us.