When couples separate or divorce, property often becomes a major point of dispute. If one person stays in the home and the other moves out, the question of occupational rent may arise. This legal concept allows the non-occupying party to potentially claim compensation for their share of the property.
In this guide, the team at John Fowlers Solicitors explains what occupational rent is, when it applies, how it’s calculated, and how you can make a claim.
What Is Occupational Rent?
Occupational rent refers to compensation that one co-owner of a property may owe another when they remain in the property alone. It usually comes up during divorce or separation when one party stays in the jointly owned home without the other's consent or agreement.
For example, if you co-own a property with your former partner and they continue living in it while you move out, you may be able to claim occupational rent as part of a financial settlement.
It is important to note that occupational rent is not automatic. It is considered on a case-by-case basis and is subject to the court’s discretion.
Can Occupational Rent Be Backdated?
Yes, in some cases, occupational rent can be backdated. The court will consider a range of factors, including:
- Whether one party was excluded from the property
- The reason for the exclusion
- Who paid the mortgage and household bills
- Whether children were living in the home
If you were effectively prevented from living in the property or had no reasonable option to return, the court may agree to backdate occupational rent to the time of your departure.
However, each case is different. It’s important to seek legal advice early to understand your position.
How Do I Claim Occupational Rent?
Occupational rent is usually claimed as part of financial proceedings following a separation or divorce. It is not a standalone application but forms part of the wider negotiations or court proceedings around asset division.
To claim occupational rent, you will need to:
- Provide evidence of joint ownership of the property
- Show that you were excluded or no longer living in the home
- Demonstrate that your ex-partner had sole use of the property
- Make the claim within divorce or civil partnership dissolution financial proceedings
A solicitor can guide you through this process and help present a strong case.
Need advice on making a claim?
How Is Occupational Rent Calculated?
There is no fixed formula for calculating occupational rent. However, courts often start with the market rental value of the property and divide it according to ownership share.
Example:
If a home is worth £1,200 per month in rent and is owned 50/50, the starting figure might be £600 per month owed to the non-occupying party.
The court may adjust this based on:
- Mortgage payments made by the person in the home
- Ongoing maintenance costs
- Presence of children
- Other financial contributions
Each situation is unique. Courts aim to achieve a fair outcome rather than apply rigid calculations.
Is It Worth Pursuing?
Pursuing occupational rent can make sense in certain cases, especially when:
- The property has significant value
- The occupying party has refused to sell or leave
- You have suffered financial loss due to being excluded
However, it’s not always worth the legal cost or stress. In lower-value cases, it may be better to focus on securing an overall financial settlement that works for both parties.
At John Fowlers Solicitors, we will always advise you on the most cost-effective and strategic route to resolve your case.
Settling Outside of Court
Occupational rent claims can often be resolved through negotiation or mediation rather than court proceedings. If both parties are willing to engage constructively, a settlement can be reached that reflects the value of occupation without the expense of litigation.
Our solicitors are skilled negotiators and will help you achieve the best outcome possible, whether through agreement or legal action.
Talk to John Fowlers Solicitors Today
If you are considering making an occupational rent claim or need advice during a divorce or property dispute, we’re here to help.
The Family Law team at John Fowlers Solicitors provides trusted legal advice with compassion and clarity. Whether you are claiming occupational rent or defending a claim, we will guide you every step of the way.