Applying for Divorce and Negative Equity

Gloomendoom

daska wrote: »

Chances are that each of them is liable for the full debt.

OP - the simple answer to your wife is "yes of course darling, anything you want, more than happy to oblige, let me know when you've paid C&G the lump sum they insist on to do this." She is asking you to take on a debt that would otherwise be in her name so you wouldn't be being unfair.

This is what I was going to suggest. Keep the status quo or, if she really wants out now, suggest she pays all or a fair proportion of the lump sum.

IIRC there are other costs involved too. They should at least be shared.

peachyprice

daska wrote: »

Chances are that each of them is liable for the full debt.

OP - the simple answer to your wife is "yes of course darling, anything you want, more than happy to oblige, let me know when you've paid C&G the lump sum they insist on to do this." She is asking you to take on a debt that would otherwise be in her name so you wouldn't be being unfair.

This exactly. She wants out, she's the one who should be paying for it, not you.

BitterAndTwisted

"Chances are that each of them is liable for the full debt."

When the mortgage is in joint-names, there is no chance about it. Both are equally liable for the whole debt and will continue to be until either the property can be remortgaged by the OP or there is no longer any negative equity. The true difficulty is that the OP is the more easily found, so should they default they will be the one the mortgage-lender will pursue as long as the ex is out of the country.

The only option, where remortgaging is impossible, is to over-pay the mortgage until the property is no longer in negative equity. If there is a spare room I'd be having a think about taking in a lodger. That could be over four grand a year tax-free to put towards over-paying the mortgage.

In the meantime, no divorce settlement.

DS4215

You house is in negative equity by £30k and the mortgage is £158k. Tell her she needs to buy out of the negative equity and it will cost her £15k - instant 10% deposit for you

The alternative is for her to remain on the mortgage until such time as you have paid off the balance or enough to be in positive equity (and you could end up paying her to be off the mortgage then).