It will depend upon how you jointly own the property. Usually couple own as joint tenants where they own the property in equal shares and when one dies the whole reverts to the survivor. However, they could own as tenants in common, where each holds a specified share, which can, for instance, be left to a third party in a will.
Often in, for example, divorce proceedings, the courts will use discretion to make allowance for the input from each side into a joint tenancy. I imagine an OR might have the same discretion.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You need to be careful as a Trustee assumes a 50/50 split of equity. If your wife can prove she funded the deposit she has an arguable case but it could also be argued that the deposit was a gift to you both. It may be worth seeking legal opinion before you decide to go bankrupt.
Using the principle of the equity of exonoration, your wife ought to easily be able to argue to hold a higher than 50% share of the equity in the property.
These days, with the principle of intent between parties being a powerful tool in Court proceedings, most Trustee's will be happy to consider a reasonable settlement based on the facts presented to them.
