Hello Haggis and welcome.

I think that it's going to be extremely important that you or your solicitor liaise with your ex-husband's trustee (the person that is handling his protected trust deed).

The issue might be that your ex-husband's assets will have vested (passed to) his trustee when he signed the trust deed. If the trustee believes that your ex remains a part-owner of the property they'll be duty-bound to look at this quite closely I'd imagine.

Did your ex tell his trustee about this property when he signed his trust deed?

Hi thanks for replying

No he didnt tell them about the property. He lives with his partner and child in a council flat and I know very little about him - even where he lives. All corresponding was done via my solicitor to his place of work as he wouldnt give us an address. So all paperwork been done for transfer to title including him signing a form asking for 0. He has said he wants nothing and has never asked for anything.

I just cant believe this. I am the complete opposite - I have no debt because I have tried so hard to be careful with the little money I have coming in every month and have my (our) son to care for.

Hi Haggis.

The issue is likely to be whether your trustee considers your ex husband to legally remain a joint owner of the property. If they do consider him to be a legal joint owner of it, and there is equity in your property, the trustee may feel obligated to require that some of that equity is used to repay his creditors rather than him giving it to you by passing full title over to you.

Without having known about this property the trustee will have been unable to factor it in to the advice given to your ex before he signed the trust deed. It sounds as though they may be made aware of this now, which is something that you may have reason to be concerned about. Therefore the conversation with your solicitor seems to be quite urgent and important at the moment.

If the worst happens which I think will - would I need to pay all of my ex husbands debts? Or just part. I am in tears just now at this and just cant believe it.

Also as my ex has never even given me an address - how can I find out who to contact re his trustees? I have just read that to have a trust deed you need to have a minimum of £10000k debt??????!!!!!!!! I cant believe that.

Hi Haggis.

I really don't know that this is going to happen in that kind of way. It's just that there is obviously some uncertainty for you (in a number of different ways) at the moment and your solicitor should be able to guide you through that and help you to protect your position.

You certainly aren't responsible for your ex husband's debts. The question is more whether his trustee will consider that he remains an owner. If he is still the legal owner the trustee may feel obligated to try to realise some of his asset to help repay his creditors. You have rights as well though, which is where your solicitor should be able to guide and assist you.

Okay - thank you very much for all your advice I am really grateful.

I need to wait till Monday till the solicitor is back in the office - will update the thread when I have more information.

Thanks again

Hi Haggis

The process is actually more straightforward than you think. If the property is in joint names, the your husbands trustee has an interest in one half share of the net equity. The level of debts have no part in this.

The trustee will instruct a valuation, obtain the redemption from the mortgage and if there is any equity he will seek half of this. You would then need to negotiate with the trustee to pay all of this half share or try and agree a compromise.

Mark

So if his debts for example are £15k - and half the equity is £30k - they would apply for 30k?

Also if the level of debts have no part in this - then what happens to the extra money that would be left over?

I am just fuming about this - always penalised for doing the right thing i.e working and paying for anything I buy and not getting myself into debt. Why bother when there are so many get out of jail cards available.

Hi Haggis

In that scenario the trustee would only seek a sum sufficient to clear all debts, plus interest and the cost and outlays of the trust deed.

Mark

quote:

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Originally posted by Mark McFadyen

Hi Haggis

In that scenario the trustee would only seek a sum sufficient to clear all debts, plus interest and the cost and outlays of the trust deed.

Mark

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If the trustee doesnt know about this property as my ex partner obviously hasnt told them - how will they find out - does the bank need to alert them as they only found out today when this search was done?

Also - when you say they will seek a sum sufficient to clear all debts - is that figure based on the original full debt or the reduced debt agreed at when the trust deed was started

Thanks for your help

Hi Haggis

The trustee will have an inhibition and that will alert the solicitor, bank etc who have an obligation to advise the trustee.

The trustee is entitled to half of the net equity as stated. If this is sufficient it needs to pay the full debt, not what was agreed under the TD proposal.

Mark

Last question - I work part time i.e 20hours at minimum wage - the mortgage amount is the very most that I can borrow and thats why the bank had agreed on the transfer of title as I JUST earn enough. If I was to lose equity there is no way the bank would remortgage a higher amount - I couldnt afford to pay a higher amount. What happens with situation like that - is that taken into account.