If you do not own the property

Thelightisnowon

Hi

My husband bought me out of our last property roughly 6 years ago and it was put into his name. He sold the house and we moved into a new property just under a year ago which is only in his name. If I wanted to go bankrupt would they still take the house into this even though I do not legally own the property?

Thanks

inmypocketnottheirs

Just a question. If you were to divorce, would you expect to receive a share in the property?

Broken_hearted

It dfepends if you are paying towards the house

fermi

My understanding is that if you have in some way contributed to the purchase of the property, then the Official Reciever/Trustee may well decide that you have accrued a 'beneficial interest' in the property. This can apply irrespective of whose name the house is in.

I think contributions may include things such as:

* Paying towards the deposit.
* Contributions to the mortgage.
* Long term contributions towards other household expenses that allow your partner to make additional or lower contributions to the mortgage from their own income. In others words, paying part of the mortgage indirectly.

If it should be decided that you have accrued a 'beneficial interest' then the OR/Trustee will normally allow a partner/relative to purchase back the BI for a reasonable sum; so even if you have a BI not all is lost.

If you even suspect you may have accrued a beneficial interest in the property it is important to get some professional advice on this issue before you proceed with bankruptcy.

Please also be aware that if you are made bankrupt, the OR/Trustee my also want to look at the previous 'buy out' on the property to make sure that it was not done for over/under value. There is a time limit I think for how far they can look back on these transactions, but I don't have it to hand a the moment.

Hopefully some others here more knowledgeable on the property side will be able to add to this or correct me if I'm wrong.

rog2

I think it would be very unusual for the OR to question the previous 'buyout' - normally they would only go back 5 years, max, unless there were a question of potential fraud.
Providing that you can convince the OR that you have not contributed towards the purchase of your husband's house, then the OR will not normally vest any interest in the property. Be very carefull, though, as it may look a bit suspicious as your husband only bought the house a year ago.
As fermi says - take a bit of professional advice on this one.

fermi

rog2 wrote: »

I think it would be very unusual for the OR to question the previous 'buyout' - normally they would only go back 5 years, max, unless there were a question of potential fraud.

Thanks rog. I knew the general limit on normal transactions was 5 years, but I had an inkling that is was longer for property transactions. Useful to know its not.

Thelightisnowon

Thanks for your advice - im not going to do it. I hit a low moment last night but feel better today. I can pay my debts off although it will take quite a long time.

Many thanks again

Conor_3

Always worth knowing what your options are and any ramifications involved.

Good luck with getting those debts down. Remember to ask on the Debt Free Wannabee forums.

rog2

Thelightisnowon wrote: »

Thanks for your advice - im not going to do it. I hit a low moment last night but feel better today. I can pay my debts off although it will take quite a long time.

Many thanks again

Good luck - Have you spoken to any of the Debt Counselling Services - CAB, CCCS or National Debtline (to name just three). Their advice is Free, Impartial and Professional. They will be able to advise you on the way to deal with your debts that is best suited to your situation.

Good Luck.

Broken_hearted

Thelightisnowon wrote: »

Thanks for your advice - im not going to do it. I hit a low moment last night but feel better today. I can pay my debts off although it will take quite a long time.

Many thanks again

Good luck. Check out the debt free and old style boards for ideas to get you debt free faster.