Divorce, Defaults and starting over...

TheoJones

First time poster folks, so please be gentle..

six months or so back, my sister's husband of nine years walked out on her and the kids. Turns out he has been having an affair with an old flame that he ran into again after changing jobs.

He's doing the usual scummy things - demanding that they sell the house (he has very unrealistic idea of what the house is worth, and thinks there is 20K equity there - in reality, it's likely to break even), and refusing to pay anything towards the mortgage or kids (plus a bunch of debts they racked up doing the place up)

Sis is borderline on affording the mortgage, but he could manage it on his own easily.

She frankly just wants shot of him, so instructed her solicitor to offer to transfer the house into his name for nowt, plus a straight split 50/50 of the credit cards etc.

so far, so good...

The problem? it's been two months and no response from him - his solicitor keeps sending "awaiting instruction" holding letters - from family friends, he has been living it up with with the new woman, new car etc, and enjoying having no bills to pay, no doubt...

I'm wanting to help - I have a buy to let place that Her and the kids could stay in on low/no rent so she can get back on her feet.

She is thinking of just stopping paying the mortgage (she is paying the whole thing just now, solely to avoid a default), and telling him it's his problem to pay, sell, whatever.

If she is staying in our BTL, she has somewhere to live without any worries about credit checks for renting etc. and given the kids are settled in school, she has no plans to move for the next six years anyway.

So, big question - is there anything we are missing here? We think the worst case is he doesn't pay the mortgage, they both take a default (which she is actually okay with), and wait it out for six years...

Are we going to get blindsided by something else here? any ideas on a better way to straighten this out?

TJ.

renegade

Sounds like he doesn't want the debt of maintaining the house & paying the mortgage.
He is no doubt sitting pretty, no responsibilities, no debt to pay as he is living with his new love in her house.All he wants is the money from the sale of the home. Don't know about the legalities of her moving into your BTL house but she needs to get the child benefits sorted out with her Solicitor, he cannot be allowed to get away scot free from his responsibilities to them.

daska

She can use the CSA to try to get some maintenance out of him. And she could, alternatively, agree to sell the house rather than transfer it. If there is equity in the house and she 'gives it away' she might conceivably run into difficulties if she needs to claim means tested benefits.

mackemdave

She needs to get in touch with CSA pronto

clearingout

is your sister in Scotland (I notice you're in Glasgow)? I am not sure how the laws are there on divorce, but it is different to England. I would suggest filing for divorce if she's able (I think she might have to wait for at least a year in Scotland?) and that will force the issue of money etc. as it will all need straightening out to get the divorce over and done with.

the CSA will deal with child maintenance but do be prepared for him to leave his job if the girlfriend is in a good position financially. Unfortunately, this happens all too often. Regardless, getting used to managing on what money she has and not including maintenance in her monthly budget is a good idea so that if she gets it, it's a bonus but she's fine if she doesn't.

Tell her to hang on in there, it gets better. Eventually.

princessdreamer

My advice if there is no equity and loads of debt hand the keys back and go bankrupt, him and the tart can sort it out.

milliemonster

I understand from your post you are suggesting that she stops paying the mortgage and obviously if he doesn't pay either the house will be repossessed?, I think the only thing you need to realise is that if the house is repossessed and there is a shortfall on when it is resold, the mortgage provider has 10 years to chase for payment, so it is highly possible that this would not just drop off her credit file after 6 years and could affect her for much longer, the only way to avoid this would be a) if there is no shortfall when the property is resold, or b) go bankrupt then the shortfall will fall into her bankruptcy and to her ex

princessdreamer

I'm saying if her and the kids can have a better life by throwing the towel in and walking away why struggle.

TheoJones

clearingout wrote: »

is your sister in Scotland (I notice you're in Glasgow)? I am not sure how the laws are there on divorce, but it is different to England. I would suggest filing for divorce if she's able (I think she might have to wait for at least a year in Scotland?) and that will force the issue of money etc. as it will all need straightening out to get the divorce over and done with.

the CSA will deal with child maintenance but do be prepared for him to leave his job if the girlfriend is in a good position financially. Unfortunately, this happens all too often. Regardless, getting used to managing on what money she has and not including maintenance in her monthly budget is a good idea so that if she gets it, it's a bonus but she's fine if she doesn't.

Tell her to hang on in there, it gets better. Eventually.

Yeah, in Scotland not far from us. She has started the divorce proceedings, but things move slowly - even more slowly because he isn't responding to his lawyer...

Sounds like she needs to sic the CSA on his sorry !!!, pronto.

Thanks for the kind words!

TheoJones

Thanks Milliemonster - that's the sort of thing I wasn't aware of. it's one thing to take a 6 year hit on a default - another thing entirely to be hounded by the bank for 10 years.

neverdespairgirl

TheoJones wrote: »

Thanks Milliemonster - that's the sort of thing I wasn't aware of. it's one thing to take a 6 year hit on a default - another thing entirely to be hounded by the bank for 10 years.

I don't know about Scotland, but it's 12 years in England & Wales.