Selling home when ex husband has IVA

Glasses01

Hi, my husband and I are separated and he is pushing for our home to be sold so he can have his share of the equity, he currently has an IVA which is due to finish early around Feb 2025,  If our house is sold will the IVA company take money for his debt, if so will it just be out of his half of equity or will I be penalized too, even tho IVA is his and not mine, also do you have to 3 months after IVA is finished to get a certificate of completion, thanks 

RAS

Are you sure his IVA finishes in Feb 2025? Normally those with IVAs are asked to remortgage in year 4 or 5 to release equity which goes to their creditors. And very commonly this doesn't happen because the other owner refuses to remortgage, as does the mortgage provider.

So the debtor ends up paying an additional year towards their debt.

If you are doing this with the additional complications of a pending divorce, then you need good advice from someone versed in divorce law and insolvency. 

The basic rule round divorce is that the parties split 50:50 those assets that are owned at the time of the settlement. So hubbie may release 50% of the equity to complete his IVA and still try for 50% of the remaining assets when you divorce. You need very careful advice.

As to the completion certificate, it takes at least 3 months. If the original IP went bust and cases have been taken over, or the provider is just slack, it can be 9 months or more.

Glasses01

thanks for you thanks for your advice RAS, yes it definitely finishes in a few months, but I am unaware of any request for him to remortgage or anything, I’m wondering if that’s why he is pushing for a sale of house so quickly, it’s not because he is still paying the mortgage even tho he has left, because he won’t pay anything towards it now, he says because he is not living here, so I am paying it all and trying to clear the arrears on mortgage that I was not aware of,   I wanted to put off speaking to solicitor because of the cost but I think I will have to pretty soon 

sammyjammy

I don't understand why he is in such a rush, if it were me I would be waiting until I had a certificate of completion, if the house is sold before this happens they will want some/all of his equity from him for his creditors/their fees.

fatbelly

He wants his share of the equity to pay his creditors in full and all the IP fees.

What a generous chap!

Seriously, if the IVA is that close to completing (and even if it isn't) he needs to let it complete.

You can see the status of his IVA on the insolvency register. It'll be marked current at the moment. You need that to change to completed

RAS

OP, fatbelly knows what they are talking about. 

Glasses01

Thanks guys for your advice, he just can’t wait to get his hands on some money, I think his new woman my be behind it, but just wanted to make sure that what I had read was true about IVA so you have all answered my concerns, much appreciated X

RAS

You need to tie the house sale ( or your buy out of his equity) with the financial settlement of the divorce. Surprised he hasn't initiated divorce?

And you need to be aware that if you pay all the mortgage and the arrears, he will still be entitled to 50% of any additional equity that build up as a consequence. So it is in your interest to sever this financial arrangement as soon as possible.