Deed of Trust with new partner whilst going through divorce

shakespeare99

Hi. I am currently going through a divorce (between nisi and absolute). I have bought a house with my new partner and we have a deed of trust in which she owns deposit and majority share (99%). Due to this, and the fact that as we have just bought the house there is very little equity, can my ex wife make a claim in financial order? Not sure if it is relevant, but I got together with new partner about 3 years after separation. Any advice greatly received. Thanks.

WillowCat

Post separation assets can be considered if they are necessary to meet the needs of the parties, though it is not possible to force a sale or transfer ownership of a property which is in joint names with a person who is not a party to the proceedings.

I would be concerned if the declaration of trust doesn't reflect the reality of the money put into the property.

Did your new partner put in 99% of the deposit, and is she paying 99% of the mortgage? If so, you are fine.

If not, there may well be a quite reasonable question that you have made the declaration of trust in an attempt to frustrate your ex wife's claim, and it would therefore be viewed with scepticism. You may find it would be assumed that you do in fact own a greater share than the trust declares. All this would be argued, expensively, in court.

Be aware that the deposit you did put down, if it were from savings built up during the marriage would be considered matrimonial anyway.

TBagpuss

Your wife can make a claim against any assets *you* have, and as Willowcat says, if the dec. of trust is not a true picture of how you and your partner own your new property a Court may take that into account. They would be unlikely to seek to adjust the trust deed but could determine that you in fact had a larger share of the property against the other matrimonial assets, and therefore assess you as needing less of the joint matrimonial assets, due to your interest in the property you own with your new partner.

shakespeare99

Thanks for the replies - I appreciate your input. At the moment, due to financial difficulties I had in marriage, I currently pay half food and half bills whilst my partner pays the mortgage and the other half of bills and food costs. My partner paid 100% of the deposit from the sale of her house. It is a joint mortgage based on both of our incomes, however due to the costs I have going out, the Dec of Trust is reflective of what we put in. Also, as the property has only very recently been bought, so very little equity as yet, is it just the equity that could be contested? Thanks.

WillowCat

It sounds like you are fine then. Yes it is just the equity - and would be the 1% of the equity you have laid out in the deed of trust.

Be ready to provide evidence that your partner paid 100% of the deposit. Obviously the bank statements you provide with your disclosure will show that you are not making mortgage payments.

Good luck - divorce can be a long and stressful experience. I've only just got to the end of the road with mine and we separated 5 years ago.

shakespeare99

Thanks WillowCat - yes we can prove that.

Hopefully we'll get things resolved without too much stress. Best of luck for the future.