Divorce after 35yrs Finacial settlement and existing equity release loan

megarox

We got divorced after 35 yrs ,last Yr. We are currently going through financial remedy 

Matrimonial home was paid for by me in full .but somehow I never ended up on the deeds.
Key points
1) I stupidly was co Vincent by spouse to  transfer my  equity in matrimonial home to  spouse during marriage but after separation   as I was going bankrupt. 
2) spouse used this to secretly get equity release lump sum

I only just found this out.

My question is 

1)will transfer of equity affect my claim for 50% of house 
2) will equity release in spouse name only also affect my claim for 50% , 

I'm hoping the equity release loan will come out of spouse' pot, and that the transfer of equity or whatever it was I was co orced to sign can be null and void by the judge ?

Keep_pedalling

Whoever has ownership does not effect the fact that 100% of the house is a matrimonial asset, as is any money raised through ER (if any is left).

I am sure the OR would love to know about the transfer of your share of the house because I am pretty sure that is classed as fraud unless she paid you for your share of any equity in the home.

https://www.purnells.co.uk/bankruptcy-and-ivas/house/transferring-to-your-spouse

megarox

Thanks for your response .. fortunately I didn't go bankrupt as I came to an agreement with creditors . And debts were paid off. Spouse then decided on divorce before we could remove the transfer of equity back to joint.

TBagpuss

The house is a matrimonial asset regardless of whose name it is in. If your divorce hasn't been finalises, and if you haven't already done so, register your Matrimonial Homes Rights against the property. If your divorce has been finalised then you cannot register matrimonial hom rights but may be able to register a restriction.

The money your wife has recieved from the loan will be an asset which she will need to diclose.

If your debts were cleared from joint asets that's also a relevant factor which the court can take into account .

Any claim you have against the property will be subjecttohe mortgage lenders prior charge - i.e. you can only calim against the equity, and against the lump sum your wife has received. 

If you trnasferred the orerty into her name to try to avoid paying your creditors this is behaviour which the court is entitled to take into account - did you end up payingthe debts in full, or sis the creditors settle for less than they were owed in the belief you had no assets? 

74jax

Have you and your wife / husband had your Absolute? 

Scorpio33

Does your ex still own the house? Often with these equity release schemes, the ownership is transferred. If that is the case, she doesn't own the house, so can't give you half of what she doesn't have. The question is then - what has she done with the money she received?

megarox

Thank you all for younresponses I will try and answer 

1)debts were paid off and a public liability claim against my company was unsuccessful and so didn't make me bankrupt. Some debts still  left that I am paying off out of my own pocket .

2) divorce is absolute and I did manage to get home rights logged at land registry

3)house is in spouses name at land registry and equity release company are listed as an interested party on the deeds

4) I have no idea of what has happened to ER money . There no response  to exchange of finance declaration as required by courts.

Scorpio33

If there is a charge on the house by the equity release co, it may be that there is no equity in the house to share with you (or at least that is what I suspect). 

Even if the judge agreed, I don't think the transfer of equity you signed can be null and voided by the judge as that equity has now (in effect, through a charge) been transferred onto the equity release company.

So you'd still be entitled to 50% of the equity in the house, it being a marital asset. Its just now the marital house is value less mortgage less the equity release interest (which will be not much).

TBagpuss

megarox said:

Thank you all for younresponses I will try and answer 

1)debts were paid off and a public liability claim against my company was unsuccessful and so didn't make me bankrupt. Some debts still  left that I am paying off out of my own pocket .

2) divorce is absolute and I did manage to get home rights logged at land registry
Matrimonial home rights notice can be removed by sending a copy of the Absolute to the Land Registry, so at the very least be aware that it could be removed if your ex wife applies, at any time.

3)house is in spouses name at land registry and equity release company are listed as an interested party on the deeds

4) I have no idea of what has happened to ER money . There no response  to exchange of finance declaration as required by courts.

see bolded above 

megarox

TBagpus - fortunately , as far as I was   was told , there is a financial remedy case in place so it cannot be removed 

Scotch_Bonnet_

As you registered the Home Rights Notice, you will have to agree to it being removed, she cant do it on her own.