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Declaration of Trust

  • sacoolcat
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08 Oct 12 #359892 by sacoolcat
Topic started by sacoolcat
Can anyone help please! I have owned my own house since 1994, and it was in my sole name until just after my husband I got married in Aug 2008. So it was in my sole name for 14 years. After we got married, I agreed to put his name on the deeds so that we could increase the mortgage. The mortgage was and still is interest only. The value of the mortgage when we got married was £50 000. The value of the house when we got married was £250 000. I agreed to increase the mortgage, partly so that I could pay off my husbands debts of £30 000 that he came to the marriage with, and partly so that we would have some capital to do some cosmetic improvements on the house and also to pay for our wedding and some other things.

We increased the mortgage to £114 000 and then my husbands name went on to the Deeds and the Mortgage. At this point, he also signed a Declaration of Trust stating that I owned the first £200 000 of equity in the house.

I immediately paid off his £30 000 of debt, we spent £20 000 on the house, and the rest on our wedding and honey moon. The agreement was that when my husband received his inheritance, we would repay the mortgage.

So in 2009, we put £50 000 of my husbands inheritance back into the house. So, £30 000 was his repayment for his debts and therefore he has put £20 000 in to the house.

Right now, I have around £2500 in savings, I earn £350 a month and he earns £30 000 a year. He has no savings.

We are in the middle of the divorce and I am getting really scared that he is going to try and make a claim on my house. It has been my children and my home for 18 years now. We have no children jointly. My children are 18 and 20 and away at Uni, but it is still there home.

My question is, does anyone know if the Declaration of Trust will stand? Can I be forced to sell my house in order to give him £20 000. Also, my mortgage is now £68 000 instead of £50 000 so surely he should also shoulder some or all of that? Also we bought a new car in June (before I thought we were to split up) which I now drive but which is being paid off over five years. He has kept the other car, which has nothing owing on it.

I think he should pay me maintenance, as I earn so little, until I can support myself, and I don''t really think I should have to give him anything at all! He lived in my house for four years, with an interest only mortgage and I paid off all his debts for him!

I would love to know what anyone thinks.
Thanks so much
Sacoolcat

  • LittleMrMike
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09 Oct 12 #360050 by LittleMrMike
Reply from LittleMrMike
If you were not married, a declaration of trust would be very important.

But as it is, you are married and the Courts have wide powers of redistribution.

The Court has to take into account a number of factors set out in section 25 of the Matrimonial Causes Act 1973. You''ll find a list of those somewhere in the wiki library.

The most important considerations are need and particularly your need for a home and that of your husband. Contributions are important but in practice they tend to take second place to need.

I think it''s fair to say that it is not usual for a spouse to end up with no interest in the matrimonial home at all, but it can sometimes happen that the realisation of that interest may have to be postponed.

The thing that strikes me here is your very low income. You will almost certainly have to rely on benefits after you separate. Maintenance is possible in view of the income disparity but he will have to secure his own accommodation and may need to rent.

So the answer to your question is that the declaration of trust is relevant, but I''d say that your need for a home would be regarded as more important.

I am going to have to go to a PCC meeting tonight, and can''t give your query the attention I think it deserves, but as a start tell me how much equity there is in the property.

LMM

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09 Oct 12 #360077 by sacoolcat
Reply from sacoolcat
Hi and thank you so much for your reply. I would really value any more advice you can give.
The house is still worth around £250 000, and the mortgage now is £68 000 interest only. The declaration of Trust states that I own £200 000 in equity.
Yes, my earnings are very low, and I am trying really hard to get more work, meanwhile I am trying to get my husband to agree to some maintenance for an agreed period of time, until I can support myself. So far, he has agreed to give me £450 a month for six months.
He takes home £1800 net, gets another £350 fuel allowance, and is paying £400 per month to rent a flat. I feel that he should give me at least £600 a month, and that it should not really have a time limit on it.
I can answer any other questions that you might have, if you are able to help any more.
Many thanks again

  • soulruler
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09 Oct 12 #360080 by soulruler
Reply from soulruler
I totally disagree with LMM on this subject.

In my personal circumstance there was no pre marital assets put into the finance, I think your argment which I believe in is in chancery/family.

I have been unfortunately in court 42 times in a small money divorce where there is not enough money to house both parties (let alone the three children = never forget our children).


I believe I am pretty good on the subject of trust and also prosecution as my case is now adjudicated in Queens Bench and it is common knowledge in law that QB Judges adjuciate criminal procecution.

  • MrsMathsisfun
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09 Oct 12 #360093 by MrsMathsisfun
Reply from MrsMathsisfun
How long was the actual relationship Sacoolcat?

Think £600 a month sm indefinately from a short marriage (assuming you werent together long before your marriage) when he only takes home £1800 is unlikely.

  • LittleMrMike
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10 Oct 12 #360134 by LittleMrMike
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Sacoolcat, I have sent you a PM

LMM

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