Wife's House

Banquo21

I am thinking of declaring myself bankrupt. I have £30,000 in unsecured debt. All in my name. I live with my partner and have done for 1 and a half years. The mortgage on the house is in her name only and comes out of her account. She has lived there for 12 years and bought her ex husband out around 3 years ago. I do pay toward household costs. But that is all. She wants to keep our finances separate and who can blame her! We don't have any kind of credit, loans etc in joint names. Should my wife see a solicitor to see where she stands? It seems like the opposite of divorce as I am NOT claiming interest in the house.

I am worried about the Official Receiver thinking I have "beneficial interest" in the home. I want to make a clean start as we are expecting a baby this year, there is already my stepdaughter who is 10 who lives with us. It seems doing research into this that it is up to the OR's discretion whether or not we have beneficial interest. Obviously I'd like to know one way or the other before declaring myself bankrupt.

Any help or advice would be appreciated.

alastairq

Beneficial Interest can be a bit of a minefield.

However, I suspect it would only start to be noticeable after quite a few years of co-habiting.

Since your partner will have evidence of her complete ownership of the property, an Official Receiver may have a problem proving you have acquired even a small percentage of the equity.

[the fact that you do not pay the mortgage, but, contribute towards the housekeeping, is irrelevant.....you are deemed to be 'supporting' the payment of the mortgage by doing what you do.]

Bear in mind, if you petitioned BR now, then the OR can look at the Beneficial interest up to 3 years from now....

Is the house in positive equity?

Banquo21

My partner got a £75,000 mortgage and has £61,000 left to pay. Average house prices where we live are around £65,000

debt_doctor

Hi,


I have never once (and neither have my colleagues) ever seen a claim made in bankruptcy against the beneficial interest in a property where the legal title did not belong to the bankrupt.
In a fair few cases, the home owning non bankrupt owned the house outright and contributions had been made by the bankrupt for many years.
DD

Banquo21

Just spoke to a debt advisory bloke and he said it's rare they will take an interest in the house. But, again no promises.

alastairq

Go for it!

It is probably arguable reference BI...and wouldn't amount to much, pounds-wise, anyway....since the 'value ' of the property can be argued by yourself.