Bankruptcy & ex-wife's property - advice please.

wazza

Sister has been divorced for 15+ years. She has three children. The youngest is 22 and is at full time education. She lives in a house which her and husband bought years before the divorce. The house and mortgage is in his name and she pays the mortgage and the upkeep/maintenance etc. He does not contribute anything to the house or the children. Has completely cut himself off from her and the children until a couple of years ago. He rings now and then to talk to the children.

Seeking legal advice in the past she has been told that her ex has a quarter share of the property and cannot sell the house while the youngest is in full time education. He wants my sister to buy his share out. Her being on benefits does not have that amount of money available.

Few days ago he told her to start action in getting the house transferred into her name and he will sign the documents. Apparently he took out a loan of £250k few months back and is planning to apply for bankruptcy this summer. He has already transferred his assets to his girlfriend. Scheming so so i thought.

Sister is worried sick that if he goes for bankruptcy will they seize her home? Told her to go to CAB but she is stressed out and does not want to face anyone.

I know that there is a court hearing when someone declares bankruptcy. If one knows that this was planned when he took out loans who can she complain to that this is fraud?

Any advice will be greatly appreciated.

Thanks in advance

fiveyearplan

Hi Wazza - yes, your sister needs to seek advice and quick. I don't know why the ex has a quarter share - it seems to me he would have half! In bankruptcy there is no court hearing as such. The judge looks at the forms and stamps them without the need to really speak. In my case, and most, I didn't even see the judge.

How much is the property worth and how much is the mortgage?

We don't even need to go into the other assets he has transferred - he'll find out about that once he speaks to the OR - and they'll likely go through his case with a fine tooth comb!

peachyprice

Hi Wazza,

Well you can give your sister the news that when he does go BR he will be in major trouble for transferring his assets any anything he has done can be undone by the OR, especially where fraud is detected.

As for the house, it's not all bad news for your sister, firstly she needs to tell you how much the house is worth and how much is outstanding on the mortgage, and if he's taken out an secured loans on the house. The OR is only interested in the equity, this is the beneficial interest (BI), now because her ex hasn't paid a penny towards the mortgage for the last 15 years it can be argued that he has no BI, or only a small percentage if so, this can be bought from the OR by anyone. She will get dragged into his bankruptcy insofar as they will want evidence from her that he hasn't lived there and hasn't paid a penny for all that time, and I'm not saying it's going to be very nice for her, but she does have some rights.

If she does as he suggests as transfers the house into her name so close to him going BR and with all the other things he's done it's likely the OR will go for the house along with all the other asset he's disposed of.

She needs to speak to her solicitor agvain and find out why he has 25% share in the house, as 50% would be normal, but 25% is better for your sister.

When he does go BR his name will appear on the insolvency register, she can get details on there of who his OR is and this is who she can report the suspected fraud to. It would be in her interest to get them onside.

wazza

fiveyearplan wrote: »

......... he'll find out about that once he speaks to the OR - and they'll likely go through his case with a fine tooth comb!

Sorry but can you explain what or who OR is

wazza

peachyprice wrote: »

...



She needs to speak to her solicitor agvain and find out why he has 25% share in the house, as 50% would be normal, but 25% is better for your sister.
.......

When they got divorced the agreement was the house will be divided into 4 share, quarter for the ex and the remainder for the three children who at that time were under 16.

peachyprice

wazza wrote: »

Sorry but can you explain what or who OR is

Sorry wazza, it's the Official Receiver, the person who will be sorting out your sisters ex's bankruptcy.

She really does have a good case to keep her house, as it also belongs to the children.

fiveyearplan

Was it a legal agreement that the house would be split that way or did they agree between themselves. I think there would have had to been a trust set up for the children. Who's name is the mortgage in? Its too late to set up something like that but if it was all done legally and not some 'handshake' then it should be fine.

If the mortgage is still in ex's name then it is still his house however your sister would still have her beneficial interest in the property.

How much is the property worth and what is the mortgage on it?

wazza

fiveyearplan wrote: »

Was it a legal agreement that the house would be split that way or did they agree between themselves. I think there would have had to been a trust set up for the children. Who's name is the mortgage in? Its too late to set up something like that but if it was all done legally and not some 'handshake' then it should be fine.

If the mortgage is still in ex's name then it is still his house however your sister would still have her beneficial interest in the property.

How much is the property worth and what is the mortgage on it?

the house is worth around £100k. Mortgage remaining is about £5k

fiveyearplan

Ouch - that could be a lot at risk! Do you know how much ex's debts are? Do you know if the property was divided up as above all legally?