I hope someone can help...

Stacyluvya

My fiance and his wife split up 5 years ago, they have a home and a loan together. After the split, a solicitors agreement was made that he would pay the loan and she would pay the mortgage. (She lives in the home) They are the same amount to pay each month.

She got in arrears straight away and his Dad had to loan her £1000 to get back onto track, with the understanding he would get this back when they sold the house. She got in arrears again, and he loaned her another £1000.

We called up the mortgage company earlier this year to be told that she hadn't paid it for 18 months. She has now paid back some of the arrears but is still around £1500 off.

The house has finally sold and is all going through just now. However, our solicitor has just advised that my fiance will have to pay half of her debt as they are married!

This is SO unfair as he has kept to his side of the bargain for 5 years so why should he pay for what she has done. She has the money to afford the mortgage each month, she has more money than myself and my fiance together. We both work full time!

Has anyone been in this situation? Shouldn't the solicitors letter stating that they each have to pay a part count? This is so upsetting, sometimes I wonder why we are honest people and pay our bills on time every month

Hope someone can help us out here xxx

Lovelyjoolz

I suspect the problem here is that, because they never actually got divorced, there was never a financial agreement that said that it was in "final settlement". Which means that they are forever financially linked, and she's using that situation to her advantage.

The first question that springs to mind is why are they still married after 5 years apart??

I would suggest going back to the solicitor who they saw when they split and asking for his advice.

Stacyluvya

They didn't get divorced as we are in Scotland and we were told that if they waited, then it would be a lot easier and cheaper to arrange. All is very amicable and they have children so I guess the divorce was just put on the back burner.

He has been seeing his solicitor for a while now and he says that she can do this! If she decides not to pay him that money back then that's up to her.

It just doesn't seem very fair does it. I am hoping that she is honest about it but I just can't see it happening...

kingstreet

Typically, credit agreements are written on a joint and several basis. This means there's no "your bit, my bit" it's all owed and paid by whoever has the ability to pay.

At the point a financial settlement is reached, the lenders should be contacted to amend any agreements to the sole names of the individuals, if the lenders will agree.

Stacyluvya

Thank you - I will mention this to his solicitor. xxx

Anyone else been in this situation?

dancingfairy

I guess in theory she should pay it off. Especially if there is a financial doucment that states she is to pay that and he is to pay the loan. However presumably the shortfall will come off the profit (if there is any) and they will each get half each so it's about 750 pounds?
He could ask his solicitor about trying to get her to pay the arrears out of her share of the profit but if it is 750 you might find that quickly eaten up in solicitors costs etc etc and the time and stress and hassle involved. Ask the solicitor what the chances are and weigh up whether to proceed or not with fighting it.
If you mean 15,000 then that might be a different kettle of fish but for 750 I think I'd roll over and be glad to be shot of her before she does any more damage to the credit rating to be honest.
df

Stacyluvya

She owes £3500 altogether! It isn't a huge amount of money but when he's only ending up with around £5000 after the sale then that's a real chunk if that. We don't have a lot of expendable income and have been waiting for this for years. It just seems so unfair that he should have £1750 taken off him when he has been honest! xxx

Stacyluvya

PS - This will be our wedding fund so need as much as we can get! Surprised he hasn't been turned up marriage for good! x

Fire_Fox

Stacyluvya wrote: »

My fiance and his wife split up 5 years ago, they have a home and a loan together. After the split, a solicitors agreement was made that he would pay the loan and she would pay the mortgage. (She lives in the home) They are the same amount to pay each month.

She got in arrears straight away and his Dad had to loan her £1000 to get back onto track, with the understanding he would get this back when they sold the house. She got in arrears again, and he loaned her another £1000.

We called up the mortgage company earlier this year to be told that she hadn't paid it for 18 months. She has now paid back some of the arrears but is still around £1500 off.

The house has finally sold and is all going through just now. However, our solicitor has just advised that my fiance will have to pay half of her debt as they are married!

This is SO unfair as he has kept to his side of the bargain for 5 years so why should he pay for what she has done. She has the money to afford the mortgage each month, she has more money than myself and my fiance together. We both work full time!

Has anyone been in this situation? Shouldn't the solicitors letter stating that they each have to pay a part count? This is so upsetting, sometimes I wonder why we are honest people and pay our bills on time every month

Hope someone can help us out here xxx

Your fiancee completely misunderstood what he had signed up to. A mortgage means you are jointly and severally liable for the FULL debt, you cannot get a solicitor's agreement that overrides your legal obligation to the lender and it's madness to trust an ex. Your partner should have reread his mortgage documents, insisted upon a sale or buyout, kept track of whether the mortgage had been paid every month.

Unfortunately your partner's credit rating may well have been affected by the arrears. Your wedding may not be the main concern here. It doesn't seem to me you have been getting good legal advice at all, nor still because it's not simply that your partner is still married but rather than he is still a party to the debt in the eyes of the lender.

Stacyluvya

Yes his credit rating has been affected already, we are aware of this. We are both on good salaries but can't buy our own house as I can't afford to do this on my own. So we are stuck in a renting loop, it's just a nightmare! Who could give us financial advice? We received a letter earlier that the solicitor has sent to her, asking her to sign a document that says that these debts will be solely her responsibility. If she signs this then is that it? I don't trust her at all. She has caused lots of trouble in our life and we have been doing the right thing. I can just see her putting a final nail in the coffin, so to speak xxx

Fire_Fox

Is there enough equity to pay the mortgage, any other secured loans, the legals and the estate agent? The buyer's solicitor will insist on assurances that the debts will be settled upon completion, if there is not enough equity and the ex doesn't have savings the sale may not go through unless the lender is willing to convert a secured debt in two names to an unsecured debt in one name which is not in their interests. Please read your mortgage documents and speak to the lender, this is not just between your partner and his ex.

Sorry to be blunt but you have not done the right thing, your partner didn't make regular checks on the mortgage he is jointly and severally liable for. Why didn't the lender write to him about the arrears, did he inform the lender of his change of address? On the plus side if you'd purchased another place in the last few years you would probably have made a whacking loss due to the recession.