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Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 34589
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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Overview: We are separated and are currently selling our house.

Resolved Question:

Overview: We are separated and are currently selling our house. In addition to the mortgage there is a second charge against the property, which is for a loan against our Ltd company (franchise) which is no longer trading, as it was taken back by franchisor through default, due to me receiving a conviction. We are both Directors and 50% shareholders of the company, and the company will show a loss due to the default.
Questions:
1. Can the solicitors hold on to equity on the house once sold, or must they release this?
2. Has my wife a claim against me with regards ***** ***** losses gained against the business, and as its against the company, should it be dealt separately from the house?
Submitted: 2 years ago.
Category: Law
Expert:  Clare replied 2 years ago.
Hi
Thank you for your question.
My name is Clare
I will do my best to help you but I need some further information first.
How much is the house worth. how much is outstanding on the mortgage and the Second Charge, and what have you both agreed should happen to the equity.
Clare
Customer: replied 2 years ago.

Hi, the house is currently being sold for £355,000; mortgage of £62,000, with a second charge of circa. £92,000. Nothing has been agreed as yet with regards ***** ***** my partner feels I should pick up all of the second charge due to my conviction. Therefore my partner is asking 75% of the equity? Although I feel morally to pay the second charge, the advice is that I'm in no financial position to do so.

Expert:  Clare replied 2 years ago.
Hi
Have divorce proceedings been issued?
How long have you lived together and are there any children involved?
Clare
Customer: replied 2 years ago.

Hi Clare. No, no children. Been together nine years now. We've been apart for around three months, and I'm still residing in residence, and partner does not want to divorce. I don't want a divorce either, and still hope we can get back together, but its the finances, and her family getting involved that is the problem?!! I feel that the issue of house sale should be dealt with separately from that of the business?

Expert:  Clare replied 2 years ago.
Hi
Unless you both give the solicitors the same instructions with regard to distribution then the Solicitors have no choice but to hold on to the funds until an agreement can be reached.
It is not unreasonable for the finances to be dealt with when the only asset is sold - and equally it is not unreasonable for your ex to seek a larger share of the equity to reflect the fact that the franchise was lost because of you.
However IF the matter came before the Family Court a 75/25 split in her favour is NOT a likely outcome - 60/40 or 65/35 is more likely.
You should offer to discuss matters with your ex using Family mediation
www.familymediationhelpline.co.uk
I hope that this is of assistance - please ask if you need further details
Clare
Customer: replied 2 years ago.

Hi Clare. thanks for the advice. just one last thing. My wife was aware of the case leading to my conviction, and knew that I would lose the business if I was to be found guilty! As a result my wife was offered £15,000 last year to come out of the business which she declined, hoping that we would get either more money from the sale, or that I would be found not guilty! She was also present with my council when I was told that I had a 95% chance of imprisonment if I went to trial that day. We discussed this and decided to take a plea of guilty knowing we would lose the business. Would this therefore have any bearing on the outcome of equity split? Thanks in advance for your help.

Expert:  Clare replied 2 years ago.
Hi
No I am afraid that has no relevance
Clare
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