Divorce/Debt

simpywimpy

I am in the process of starting divorce proceedings.

I am drawing up a consent order which will let me keep my BTL properties (all in my name) and hubby keeps his income.

When I remortgaged into my sole name (within last 6 months) I had to get an insurance policy in case hubby went bankrupt in the next 2yrs as he technically gifted his interest in them.

If we divorce and the consent order gives me my properties, can they still come back for the properties if I am legally given them as settlement should he file for bankruptcy in the next couple of years?

debt_doctor

Hi,

The general rule is that settlements in matrimonial proceedings are safe from being 'undone' in a later bankruptcy unless;

The court was unaware of the potential insolvency of one of the parties (ie did the court have full disclosure)

and / or that there was no collusion between the parties regarding any future insolvency.

The insurance against BR for two years is quite interesting and I wonder why it wasn't 5 years (transaction at undervalue with an 'associate')

DD

simpywimpy

I was told by the solicitors acting on behalf of the mortgage company that the rule is 2yrs hence the insurance cover. To be honest, I had no idea once the property was remortgaged in my sole name, it could even be touched.