Quick Bankruptcy and marriage question

[messym]

To cut a long story short, marriage on the rocks for reasons other than my finances.

 

I'm considering going bankrupt for various reasons.

 

House is wife's. She's owned it for 14 years, we've been married for 5.

I'm not on the mortgage and it's all in her name. I just pay money to her each month towards bills etc.

 

I don't want anything from her. My fault things are going downhill.

 

Am I correct in thinking that as the house is owned by her, in her name and I'd be walking away, that she shouldn't be affected by my BR, even if we remain legally married?

[shellsuit]

Nothing will happen to the house or your wife, if it is in her name.

 

You petition for your own bankruptcy. It has nothing to do with your wife, or what she owns.

 

Hope that helps

[messym]

It does, thanks

[gizmo111]

I would seek further advice on this as 5 years is usually the time that a court no longer considers a marriage short and that all assets are joint, whoever's name they are in. It is likely (although not definite) that it may be considered that you have a beneficial interest in the property.

[Docman]

I agree with gizzmo.

The court could consider that a beneficial interest has been created whilst you have been married, especially if you have been paying for the upkeep of the property.

Whilst a period of five years might be thought enough to establish a claim, usually the bankrupt person would not have gained a sufficient monetary claim to make it worthwhile for the trustee to go after the house if your wife objected. For example, if your wife bought the house for say £100k, and it has gone up in value during the marriage from say £120k to £150k, your share might be considered to be around £15k ( 150-120 split in half), which would easily be eaten up in legal costs, so a trustee is not likely to go to court.

Snag is for you and your O/H is that property prices have shot through the roof. Your wife's £100k house might have been worth £120k when you got married but today it could be worth £200k or more. Your 'benefit' would again be half the difference of the increase. Around £40k, which makes it more likely that a trustee would go for the house.

Your O/H needs to get her own legal advice before you make yourself bankrupt.