Divorce - what happens?

[MelanieGiles]

If you paid the £60k deposit, how come you only have £35k of the equity - and how much do you owe to your unsecured creditors in total?

[kallis3]

I'm not sure if she means equity or debts Melanie - she did say that his debts were a lot higher than hers.

[MelanieGiles]

Can we get that clarified please because those figures do add up to the total equity quoted.

[kallis3]

It's probably me that's wrong!

[sparklehorse]

Yes, you are right. The 35k is my debt, 75k his. I put 60k deposit into the house, he did not contribute.

[MelanieGiles]

So are you saying that of the £110 equity, that you should have the first £60k and then the balance of £50k is to be split on a 50/50 basis? If this is the case, and you only have debts of £35k, you are not insolvent and I am suprised you got an IVA accepted by creditors in the first place.

With figures like this, I feel that you should sort out the matrimonial settlement in priority to sorting the IVAs out. Your IP ought to be sympathetic with regard to payments in the meantime, so long as you are paying your share - and bankruptcy is to be avoided given the level of equity you are holding.

[sparklehorse]

I don't know what would happen to the equity in the house, I have not investigated it. Unfortunately the house is not just in my name, it is in his as well. I assume the reason the IVA was agreed was because of the bulk of it was my husband's debt?
This is reassuring to know though, thanks so much for your assistance in this horrible matter.

[David Mond]

Melanie is right - sort out the matrimonials first. However what does it say in your proposal as to what happens to the property?