My husband and I are separated

[nina]

My husband and I are separated (2 mnths) and I have found out that he is in an iva. The house is up for sale and it looks likely that he is going to lose his job. He has asked me to sign an RX1 form which is IP has asked him to sign. He is nearly a year into it and I haven't been asked to sign anything before. He has said that as a divorce settlement I can keep nearly all the equity - nearly 50k - as we have two very young children. I am not prepared to sign the RX1.

[scaredkez]

nina i would read the RX1 carefully , if you look on the insolvency website it explains what an Rx1 is used for
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[MelanieGiles]

Nina

I would not sign anything until you have sought specific matrimonial advice. The very fact that your husband is being asked to sign Form RX1 is that he has pledged some of the equity in your property to his IVA. Ask him to provide you with a copy of his proposal and Chairman's Report so that you can show this to your solicitor.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Nina1]

Just getting to grips with logging in etc here!!

Does anyone know what happens if I don't sign the RX1 - can his IP still lodge something with the land regsitry? It seems so unfair when he has entered into this agreement without my knowledge. How can he pledge equity in a home that is jointly owned without an IP contacting me first? It seems so unethical. Also, why do they need my signature as well - does that mean they want my equity too? My solicitor isn't up on IVA law so not getting much help there at the mo.

[MelanieGiles]

Hi Nina

No, the IP cannot lodge a restriction at the Land Registry without your permission. Your husband should have discussed his intentions with you, and your matrimonial lawyer will be able to advise you better on this. As I have already stated, get copies of all of the relevant documents before your meeting. If your solicitor needs any advice with regard to insolvency proceedings, he should speak to an insolvency practitioner or you should instruct a more informed professional.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Nina1]

Thanks Melanie. That is one of the reasons we are getting divorced- lack of honesty from him!! He has told me has no papers and his IVA doesnt involve the house so I have no way of checking. What happens if the house is sold and I take most of the equity as he agreed in our divorce settlement - can this then be claimed back? Am I breaking the law? I don't understand why he is being asked to sign this form now (and why his IP has asked me to sign this form now) when it has been in place for some months. What if he does go bankrupt six months down the line - will the trustee chase me for the money and take possession of any house I have bought?

[MelanieGiles]

Nina

Write to his IP and ask for copies of the IVA documents I have referred to earlier. If you don't know who is acting for him, this is easily searched on the on-line record of IVA clients held by the Department of Trade & Industry. This is found on the Insolvency Service website.

If your husband declares himself bankrupt, then his share of the equity in the property will vest (become owned by) the bankruptcy Trustee, and you will have one year to either buy out that interest or make alternative living accomodation.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[gizmo]

Nina, what Melanie has advised you is quite right and you must not sign the RX1 form and I hope your solicitor has already told you not to do this. If he declares bankruptcy half of the equity will vest in the Official Receiver and you will have to either sell the property after year or reach an agreement with the OR to purchase their interest in the property. Should you issue divorce proceedings and the Court be asked to consider a fair financial settlement (assuming your husband is not BR as if he transfers the house to you then declares BR the OR could apply to set aside any court order for such a transfer.) the Court would undoubtedly be asked by your solicitor to take your husbands conduct in account when deciding what your share of the matrimonial assets should be. A qualified family law solicitor shoud cetaintly be able to advise you of all your options based on your circumstances and if you feel uncomfortable with the advice or lack of advice (they should know how to advise you in these circumstances) choose a new solicitor to take on your case - the law society's website will give you details of solcitors in your area and their areas of specialism. Hope this helps

[Nina1]

Thanks. My husband isn't bankrupt at the moment but I do have concerns about it in the future. I read on the insolvency website that the official receiver can overturn settlements etc for up to five years. Which is a nightmare as I will always be afraid even though I am selling our current house and purchasing house on my own that they will come after that. I just don't know how to protect a home for my children. And if he pledged his half of the equity in the IVA what happens when his IVA is paid, will they still come after me five years afterwards, just seems never ending. I know he has to pay maintenance so was considering accepting the house equity in lieu of maintenance but not sure that would stand with an OR. It seems wrong that our young children should go without a home when his share of the equity would only be a quarter or so of what he owes all his creditors. What a nightmare!!