TDA

Can we clarify 'equity', this is not the balance of property equity and creditors debt.

The balance of property equity against creditor liabilities was £7k......hence the need to take a TD out protecting the property.

C.

That's not the equity here cooler.

In terms of your trust deed it's property valuation minus mortgages secured upon the property.

There's a big and important distinction here between the principles applicable to your insolvency and the principles that would apply to a divorce.

It's not accurate to say that the purpose of a trust deed is to protect a property. Where there's a lot of equity the opposite might be the case.

I should have added cooler, this is why David, Mark and I all asked you what your original plan to deal with your equity was at the start of this thread.

TDA

Then you have confirmed my interpretation of Equity which was insufficient to settle with creditors and still have a roof over our heads hence the TD was only option.

Think we have diversified from my original post which was in response to my wifes assertion that matrimonial debt ceases to exist post TD in terms of settling financial split as settling of debt in the case of when wife abandons partner the date she left is the cut off date even if it is during the execution period of the TD.

Maybe I am not making myself clear but having spoken to insolvency agent today and dicorce solicitor I am in a much better place I think.

If anything deviates from this I will add to the thread.

C.

No problem cooler.

I still think you should discuss with your trustee what they'll expect from you, in terms of equity in your property, before they can discharge you.

I fear, from the content of the thread, that there's a big misunderstanding on this subject.

If I'm right, that could have major implications for any subsequent divorce proceedings.

Hi cooler,

We don't mean to keep going on about the equity in your property but this is one of the most important parts of a Trust Deed and it can sometimes result in the sale of a property. I realise that you only came on to ask about divorce and not speak about your property and the equity but this is something you need to be 100% sure you understand how this will be dealt with in the Trust Deed.

If my understanding of your situation is correct then you have:

Debts of £73,000.

The equity in your property is a total of £80,000 and this was at the point you signed your Trust Deed. Your half share therefore is £40,000.

How a Trust Deed should work is that you make a monthly payment for a period of 4 years but your Trustee also has to realise or effectively get access to or ingather any available equity in a property. If your share of equity is £40,000 then this sum or a proportion of this sum would need to be paid into the Trust Deed. If it's not paid in then it can result in the sale of the property.

It's the same with any other assets you may have i.e. stocks, shares, savings, motor vehicles, caravans, speedboats, motor bikes etc. When you sign a Trust Deed all of your assets need to be looked at.

All we want to ensure is that you understand that even although you signed up to the Trust Deed to keep the roof over your head, I'm not picking up that there was a clear plan to deal with the equity in your property when you signed your Trust Deed and this could cause you significant problems later on down the line.

Did you meet face to face with an advisor to discuss all of your options or did you do everything via the post?

I think that TDA and the other experts just want to ensure that the divorce aside, there will be no complications with your Trust Deed and no nasty surprises regarding your property and equity.