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Deed of trust validity on divorce

  • zoejhardman
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23 Apr 12 #325882 by zoejhardman
Topic started by zoejhardman
I have a deed of trust on my house to protect my greater equity share, but is it valid on divorce?? I''ve been reading that a marriage may negate this.

Our marital home is roughly 50-50 equity to debt. Of the equity, I contributed 85%, him 15% so we drew up a deed of trust before buying the house, showing the above split. Also, any increase in equity from house price rises was to be split 50-50, which was generous to him given his little initial equity contribution. We contribute 50-50 to the mortgage (which is interest only) and all bills. Our finances are kept separate with the exception of an equal amount paid into a joint account to pay for bills and mortgage each month

This was drawn up with the solicitor who dealt with the house purchase and wills at the same time, knowing we were engaged to be married 5 months after the house purchase. I''ve since read that the deed of trust may not be valid after marriage. We have now been married nearly 7 years.

Does it make any difference knowing that I only have all the equity because my first husband died; leaving me with 2 small kids under 3yrs and lots of insurance pay outs. I dont want to jeopardise losing all that money, which was for the benefit of my kids and me, should anything have happened to him. My 2nd husband has 2 teenage kids that live with their mum and I have my 2 kids to support, who live with us. We moved into a 6 bed house so each child would have their own bedroom - hence contributing equally to mortgage. I have also worked for him without pay part-time for 7 years so I dont think its unfair just to buy him out of his share of the house. Am paranoid he''s going to demand half the house which will cause me to lose about £100k . . . any advice, past experience

  • cookie2
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23 Apr 12 #325906 by cookie2
Reply from cookie2
A deed of trust can be set aside by a divorce judge, or not. It depends on the circumstances. It would depend on such factors as length of the marriage, number and ages of children, where the children live, your respective earning capacities and remortgage capacity, etc.

In these circumstances I would expect the husband to try to force a sale of the house, since 6 bed is excessive for your needs. If it were sold then the immediate needs of each of you and the children would be the main priority. Once those needs are met, the remaining money can be split, and this split may be uneven depending on the above factors.

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