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Bankruptcy before marriage
shadowxsong
Posts: 5 Forumite
Hello all!
My fiance has debt hanging around from defaulting on a mortgage before we began our relationship (maybe 7 years). It's more than he can repay. I am the legal owner of the flat where we both live and everything is my name. We're set to get married in a month and we're both wondering whether our getting married will affect anything or if we need to be careful not to make any blunders. I know if this were a family law situation and we were to divorce he could be entitled to half the property as it would be the 'marital home'. Is there any way this could be implied into anything to do with bankruptcy?
Basically should he file before our wedding (which is fast approaching) or should he wait until a little after when we have less stress and more free time? Would it matter either way? Any advice for how we should set up our finances? We mostly keep everything separate and always have as a personal preference rather than for any other reason.
Would appreciate any advice anyone can give? He has never done anything fraudulent just made a mistake when he was younger and we believe the mortgage company sold the house at an undervalue, but proving that would be quite difficult as we've lost a lot of paperwork.
My fiance has debt hanging around from defaulting on a mortgage before we began our relationship (maybe 7 years). It's more than he can repay. I am the legal owner of the flat where we both live and everything is my name. We're set to get married in a month and we're both wondering whether our getting married will affect anything or if we need to be careful not to make any blunders. I know if this were a family law situation and we were to divorce he could be entitled to half the property as it would be the 'marital home'. Is there any way this could be implied into anything to do with bankruptcy?
Basically should he file before our wedding (which is fast approaching) or should he wait until a little after when we have less stress and more free time? Would it matter either way? Any advice for how we should set up our finances? We mostly keep everything separate and always have as a personal preference rather than for any other reason.
Would appreciate any advice anyone can give? He has never done anything fraudulent just made a mistake when he was younger and we believe the mortgage company sold the house at an undervalue, but proving that would be quite difficult as we've lost a lot of paperwork.
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Comments
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BR needs a bit of investigating really. One thing you must not do is create any financial link between you so no joint bank accounts etc.
It is technically possible that the OR might view him as having some interest in the property you share if he has been contributing to the costs of the home for some time. He needs to get some professional advice - free from Stepchange/National Debtline or the CAB (if your local CAB has local debt expertise - not all do)0 -
Thanks for the advice! We currently have no financial links and all bills come out in my name. However, I feel like once we're married it is less easy to dispute that he's contributing to finances even if he's not contributing to bricks and mortar (e.g. he buys our food).
Does the marriage really affect much? What I am really wondering is will there be some great difference to him filing for BR now as opposed to in two months when we will be married? (As there is no option to postpone).
Thanks for the recommendations re advice I will get him to contact them.0 -
Hi shadowxsong
Getting married will make no difference to your partner's bankruptcy, but TheGardener is correct that the OR can look into whether he could have a beneficial interest in your property. It's very important your partner seeks specialist advice before going ahead with his application. Good luck for the big day.
Susie
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
Does anyone know if some form of pre-nuptial agreement would exclude the OR from trying to infer that he has a beneficial interest in the property? (I don't even know if these are legally binding in the UK).
Is there some kind of legal document we can sign prior to marriage that states that he has no interest in my property or does UK law prevent that?
Thanks for the help so far guys!0 -
Hi again shadowxsong
A pre nuptial agreement would be very unlikely to have an effect on the OR's decision into beneficial interest. Your partner either will or will not have it, depending on factors like how long he has lived in the property and what he has contributed towards the household bills.
One thing that you might want to bear in mind is you could receive wedding presents of significant value. They could be considered assets (which your partner would be entitled to a share of) and could then be considered in his bankruptcy. That would be the case whether he applies for bankruptcy before or after the wedding.
Susie
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0
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