Hello ccbtl,

I'm sure one of our experts will be able to provide you with an answer pretty soon. It may be that if the property share were not given away for the purpose of avoiding the repayment of the debt it isn't a problem but your question is best answered by Mark or Kevin.

When you say that your Dad signed over his share of the property how was this transaction actually carried out?

Hello,
Thanks for your reply.
My dad signed it over because of the separation and this was done by both my mum and dad's solicitors.

Hi ccbtl

If your Dad signed a Trust Deed or went for bankruptcy, the Trustee appointed would have to look at the transfer of the house and may raise legal action to get his half back. In the circumstances you outline, the transfer would be challengable for the next 4 years, as a Trustee can look at transfers for a 5 year period before he was appointed.

Mark

Hi Mark

Thank you very much for your response. Would this only be if my dad wanted to raise legal action? He doesn't want to do that. This house has been the family house for over 20 years. My dad no longer lives with us.

C

Hi ccbtl

I'm not entirely sure what you mean by your Dad raising legal action.

Very generally if your Dad was to sign a Trust Deed or become bankrupt and he had transferred any assets (house etc) The the Trustee could raise an action (Called an action of reduction) As the sale was to an 'associate' The Trustee could look at all transfers in the period of 5 years before the date of Trust Deed.

The only defence to the action would be that your dad was solvent (ie had more assets than debt) at any point AFTER the transfer.

I suppose a key point is what is was the value and what was outstanding on the mortgage. This could calculate the equity and then if it was previously in joint names, a Trustee could only ever seek half of the equity.

A possibility is that the Trustee looks at the position with the property and your dad makes an offer to creditors for some/all of the equity. If the creditors were in agreement, then this would be fine.

Hope this helps

Mark

Thanks Mark, I think I understand now. I meant would they only do this if my dad informed them and wanted to claim half the house back. Otherwise, how would they know about the transfer last year. I also meant to say that my mum did give him some money for the house (I think it was ?ú10,000 but not sure). They bought the house about 15 years ago for ?ú10,000, which was a gift from my mum's father.

Thanks Mark - I really appreciate your help.

Claire