Recently seperated, applied for decree nini, can his bankruptcy affect our house??

[yeska]

I recently seperated from my husband, he moved out of our home. I have applied for the decree nisi last Thursday. I have offered him the minimal amount out of the house. The amount will not pay off his solicitor debts or other debts he has which include Inland Revenue. I think he is going to have to go bankrupt. His name is on the mortgage and on the deeds of the house. If he goes bankrupt, can they come for his share of the house?? There is 100k of equity, of which i guess he is entitled to 50%. We have 2 small children, of which a access order has been sorted in family court already.

[themas]

You have offered him "a minimal amount" but then say you guess he is entitled to 50%. If the house is owned as joint tenants the 50% is probably right, but the financial settlement in the divorce might overturn that.

You should try to get that settlement first - before he goes bankrupt. Then, if you can pay him off by giving him whatever sum the settlement comes to it is possible the bankruptcy people will not be able to come after the house.

However this is quite a complicated area & divorce settlements relating to houses do not always get followed in bankruptcy.

If you can't pay him off or the bankruptcy people don't accept the divorce settlement then the house is at risk.

You may find more info on the insolvency.gov. website.

[Auntie-Mimi]

Sadly for you it would seem a financial order is not yet in place, you have to do that before decree absolute.. you need an order from court (District Judge at county court dealing with your Divorce) making the house soley yours, that way the banrukptcy should not affect things

[boxtops]

You ought to see a solicitor, yeska, get all this sorted out before your nisi is approved and certainly before absolute. You must have your financial affairs in order before the divorce, to protect your children.

[yeska]

Thank you for your help and advise. Am i right in thinking that if we are only at the dercree nisi stage and his name is still on the deeds and mortgage of the house, the house is at risk? I just need to get my head round that, as I've been told yes and no from different sources. His share of the equity is about 50K. Because i've offered a payout and its not enough to get him out of this situation obviously he's refusing to do a financial settlement. I'm guessing a bigger offer needs to be made?? I probably sound awful to you guys, but just thinking of my own financial needs and those of our children. If he goes bankrupt and a financial settlement isnt agreed in time will this affect getting the decree absolute in 6 weeks?? Your help is really appreciated.

[themas]

1. Yes - as things stand - the house is at risk if he goes bankrupt. This does not mean there is 100% certainty it would be taken, but it is pretty likely that would be the outcome after a period of time (probably at least 12 months after be became bankrupt).

2. If you are in a position to make a bigger offer & pay the money then it might be a good idea if it does result in him avoiding bankruptcy. Note that unless you trust him 100% it would be better if you paid the money direct to his creditors & not to him. Also note that the mortgage lender will only agree to his name coming off the mortgage if they are satisfied that you alone have sufficient income to keep it up to date. However, this all sounds quite complex & you really should have advice from a family law solicitor.

3. Immediately he is bankrupted the Official Receiver takes an interest in his assets, which include his share of the equity in the house. As a result, I do not think he would be able (or the Court would be able to order him) to hand over his equity share to you. So it is very important to get the divorce financial settlement implemented before he goes bankrupt.