Getting married on IVA?

fingersuk

I'm currently a year into my IVA, the second year is up in May 2009.

My question is i'm thinking of getting married in 2010/2011, what will happen when you get married with the house assets.

i.e. After getting married 50% of everything is split between you including any assets etc

Will this effect the IVA in any way?

MIVAA

Hi Fingersuk,

It's a difficult question to answer without being in possession of all the relevant details.

Having said that, I'll try to guide you as to where there maybe some impacts.

For this answer I am assuming you are the sole legal owner of your property.

Firstly, if you were living with your fiancee at the time your IVA was accepted by your creditors, then there should not be any significant changes to your agreement. This is because the joint household income and expenditure will, I assume, remain the same or very similar.

If, however, you were living apart at the time of the IVA being agreed, then should you marry and begin living together, there will be major changes in the household income and expenditure.

In this case the most likely net effect would be an improvement to your financial position, as all the household expenditure would be now shared, and therefore it is likely you would be able to afford an increase in your IVA monthly contributions. This would be assessed and quantified by your IVA supervisor during your annual review.

With regard to the equity in the property, and whether or not there would be an impact on the IVA, you would be best off talking to your IP about it when you get a moment.

Chances are there would be no change in your obligation to release your equity. The IVA is legally binding to both parties of the agreement, and therefore as you have formally agreed to release your equity when the time comes I imagine you will still be held to that.

What I can't answer is whether your new wife's claim on a part of the equity will 'out trump' the claim of your creditors. I cant imagine it will, and if it does, I don't think she would be entitled to a full 50% interest in the property. Certainly not in your creditor's eyes anyway.

Talk to your IP. They should help you understand what'll happen to the equity, but be aware of the other points I've raised.

I hope this helps

MIVAA

Dr_Hook

MIVAA wrote: »

What I can't answer is whether your new wife's claim on a part of the equity will 'out trump' the claim of your creditors. I cant imagine it will, and if it does, I don't think she would be entitled to a full 50% interest in the property. Certainly not in your creditor's eyes anyway.

Absolutely. As far as creditors and your IP are concerned, she will not acquire a 50% interest in the property purely by virtue of your being married.

The flip-side of this is that the same is true if the house belongs to your fiancee (you didn't say who owns the property), so it is highly unlikely that the IP will want (or be able) to include equity if none was included in the original proposal.