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What are we each entitled to in our divorce settlement?

What does the law say about how to split the house, how to share pensions and other assets, and how much maintenance is payable.

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transfer of equity & charging order

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18 Aug 12 #350253 by Stress3
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Hi

Please help! My sister in law is at the end of her tether financially and emotionally with a divorce that has been dragging for 3 and a half years.

To cut a long story short, her soon to be ex husband has now agreed to gift her his share of the house. There is however a mortgage on the property and a charging order for a debt in his sole name.

My sister in law wants to sell the house , repay the mortgage and the debt on the charging order and use the remainder to rehouse herself and her 4 children.

The problem is her solicitor keeps changing her advice. After steering her down that route and succeeding in getting an agreement from her ex-husband, she now says that she cannot proceed with the divorce settlement unless the company who has put the charging order on the property agree to it.

Really? I have done my research and I haven''t find anything corroborating this..quite the contrary.

We know the deeds cannot be transferred in her name because of both charges but surely that should not stop a divorce settlement to be drawn up when there is still plenty of equity left?

What do you think? Is there a way of solving this without asking for the lenders agreement (which they will not give anyway).

Thanks

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18 Aug 12 #350267 by soulruler
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If your husband agrees to gift the house to you then when the transfer is done by I think a TR1 then it will trigger a confirmation by the Land Registry of any party who has a charge or an interest lodged with them.

So, before the Land Registry will agree to the transfer they will send notificiation to those who have an interest or charge which will include the bank and the other loan company.

I agree that the other company will not allow the transfer because they will not be able to chase you for a debt in the name of your husband when divorced.

Your husband will have to clear the debt or you will need some sort of agreement that the house remain in joint names until sold and that the solicitor acting on the completion of the debt ensures that the lenders are paid off before you get the proceeds.

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18 Aug 12 #350269 by Stress3
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Ex husband can''t/ won''t [ay debt so trying to do the agreement but , that''s the problem, now the solicitor now says that, the agreement is not valid without by the bank and the credit card company''s consent.

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18 Aug 12 #350273 by soulruler
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She can contact the bank and her husband will need to contact the credit card company.

If he fails to co-operate (and I don''t see that the credit card company would let that happen as they would have no rights or security) then the most sensible thing to do would be to agree that once the sale is completed the credit card company gets the debt repaid from the joint monies which would be held in a holding account by a solicitor.

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18 Aug 12 #350282 by Stress3
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HI

All of that has been done (apart from husband contacting the credit card company as he is extremely uncooperative. It is a miracle that he has agreed to gift the house...Actually, a bit fishy as he seems quite in a hurry now... we suspect it is the prospect of possible inheritance as family is ageing and wealthy).

We want to do draw up an an agreement exactly as you suggested but it is the solicitor who is now putting up barriers.

As she seems to be doing a lot of U turns and saying different things all the time, I am starting to doubt her competence.

I wanted to know if anybody has come across a similar case: charging order, spouse can''t take on mortgage, transfer of equity etc.. so I know what we really can or cannot do and decide whether to put my sister in law to change solicitor.

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18 Aug 12 #350284 by soulruler
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You shouldn''t have to pay for advice which even your own solicitor confirms is not valid - that is professional negligence maybe you should remind them of that - you will probably be immediately told by them that you are harrassing them. (personal experience talking here).

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