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Clare
Clare, Solicitor
Category: Bankruptcy Law
Satisfied Customers: 35273
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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Trying to sort divorce. The house is an asset we contributed

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Trying to sort divorce. The house is an asset we contributed to equally. Value approx 170k with approx 100k mortgage outstanding in husband name. He is in iva.If he paid me in instalments how could i protect my money given his iva. I was thinking i would have a charge on property but not sure how this would work in situation.The other idea is i pay off his mortgage and give him some cash and havebritle transferred to mt name. Again given his iva how would this work if i paid him enough to clear mortgage plus say £10k.We are currently sharing the house but it is not stable as he is agressive and irrational so keen to sort as soon as possibleDebbie

Thank you for your question

My name is Clare

I shall do my best to help you but I need some further information first

For clarity - is there any reason why the house should not be sold?

Customer: replied 8 months ago.
Neither of us are in a good position financially and unlikley to be able to get a mortgage at the moment. he refuses to seel voluntarily as this will mean his money going to the iva.Another idea was for me to give his a cash sum say £10k then he move out and I take over payments etc and change title to state I clearly have a ownership entitlement then we sell at a later stage in a few years but again we would need some sort of agreement to do ths. The mortgage company says they dont care as long as mortgage paid.

Just for clarity do YOU want a sale?

Customer: replied 8 months ago.
I would prefer to be able to live there. I have an option to buy a shared ownership which I can afford but it is very small for me and my son to live in so would ideally like the marital home. If not then from my perspective selling it would be best if he cannot pay me in one lump sum. His idea of installments was £20k at £200 per month which is obviously not sensible with it taking 10years !

Is your son also his son?

Customer: replied 8 months ago.
no and my son is 19

As you say his proposal to buy you out is not realistic as it leaves you with no capital whatsoever

Your other options are to

1. obtain a mortgage in your name; pay off the mortgage and pay him his share of the equity.

At that point he will have to renegotiate his IVA.

or

2. Have an Order confirming that you have the benefit of the equity subject to your paying the mortgage; paying him £10,000 now and the balance of his equity at some unspecified time in the future. He will have to declare this within his IVA

Frankly the middle option is the only viable alternative to an immediate sale but if you cannot obtain a mortgage immediately the third is a possibility and protection can be given to each of you within a Court Order

I hope that this is of assistance - please ask if you need further details

Customer: replied 8 months ago.
Hi ClareMy husband has now agreed for me to buy him out. His share would be £30k but he owes me £5k. we have agreed a sum of £26k. I am happy to give this to him in a lump sum but need to know how this should be documented.The deal is he gets the money but he has to remove all his property from the house. The mortgage is in his name and I will need it to stay that way until I am in a position to remortgage in a year or so. What needs to be lodged with the title deeds to show that he gives up the equity rights on the property? Is this something we would put in an agreement or in a consent order with the divorce?At what stage would the funds normally be paid to him?As mentioned before he is in IVA and whilst I am giving him the money it is for him to disclose it to the IVA. I presume they will have something lodged with the title deed too. Will they get notified if there is an amendment to the deeds to show Gary no longer has an equity share?I just need to ensure that whatever we do once I pay hi the money there is no comeback on me from Gary or the insolvency practitionerdebbie

Have you actually started the divorce proceedings?

Customer: replied 8 months ago.
No want to agree finances before we start so it all can be done quickly
Customer: replied 8 months ago.
Also he claims that a solicitor has told him he can immediately evict my son who is at the property. My son is 19. My understanding is that he is there as my guest and whilst gary does not have to allow him to be there if im not my son can be a guest for as long as i wish. What is the basis for this advice he has received? Can he do this ?

You have Matrimonial Home rights in the property and the right to have your son there as your guest - however technically when you are not in the property your son would have to leave if your ex asked him to go - and only return when you do which is not a good way forward.

In fact it is sensible to get the divorce proceedings underway sooner rather than later because the safest way of ensuring that the agreement that you have reached can be turned into a Consent Order and sealed by the court and that will protect you in the period until you can arrange for a mortgage

Customer: replied 8 months ago.
Thank you Clare but would it also be possible to address the issues raised specifically in my 2 messages
1) why would he have been told he could evict my son?
2) What has to be lodged at land registry to dhow he has given up his equity?
3) when should he be given his miney
4) will the iva practitioner be advised of the new ownership details for house?I intend to start proceedings minday

1. He has been told that when he is there and you are not then your son will have to leave.

2. A Declaration of Trust would have to be drawn up and registered at the Land Registry

3. Frankly it is unwise to pay him until there is a signed Consent order sealed by the ocurt within divorc eproceedings

4. If your ex fails to notify the IVA practitioner then it invalidates the IVA

Clare and 2 other Bankruptcy Law Specialists are ready to help you