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Matt Jones
Matt Jones, Solicitor
Category: Property Law
Satisfied Customers: 671
Experience:  I am a qualified and practicing Solicitor with over 7 years post qualification experience
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Hi I am married and just about to purchase a house in London,

Resolved Question:

Hi

I am married and just about to purchase a house in London, using cash (mainly mine) . My wife and I are looking at owning the house on a tenant in common basis. Unfortunately my wife has had a gambling problem in the past. Would my share of the house be protected from her creditors if she relapsed and got into dept?
Submitted: 3 years ago.
Category: Property Law
Expert:  Matt Jones replied 3 years ago.

Matt Jones :

HI, I will try and help you

Matt Jones :

are you planning on having a formal deed of trust drawn up?

Customer:

Hi Matt

Customer:

Yes that's correct

Matt Jones :

have you considered the terms of the the Deed of trust with your lawyer? i.e the percentage you hold the equity in the property etc?

Customer:

Yes probably with a 75% for me and 25% for my wife

Matt Jones :

Ok that's good. In the event that your wife runs into problems with creditors she could be sued for the debt..They could then go after her assets which would involve, amongst other things, obtaining a charging order against the property. However this could only ever be against her "equitable interest" i.e. the 25% and not your 75%. So to answer your question yes your assets would be protected, but you need to have the Deed of trust drawn up well and professionally

Customer:

That's great Matt

Customer:

Thanks for your help

Customer:

Excellent Service!

Matt Jones :

they key to this however is that she is not in debt now as the creditors could see this action as trying to defeat their right to payment

Matt Jones :

i.e you are trying to get around the debt by ring fencing an asset

Matt Jones :

as long as this is not the case you should be ok

Customer:

Yes

Matt Jones :

Sorry,do you mean she is in debt now?

Customer:

She is debt free at the moment I appreciate that it wouldn't work if she had current depts

Matt Jones :

Good. If you are happy then kindly leave me positive feedback so i can be paid for my time. the question wont close and if you think of anything further on this subject later on you can always ask and I will respond. Hope everything works out for you.

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