www.iva.co.uk

Hi, me and my husband separated nearly 3 years ago. He moved out of our property 2.5 years ago into a flat that we jointly own. He then took out an iva. I now want to go for divorce and get his name removed from the house that we own and my name removed from the flat that we own. There is approx £60k equity in the house and £40k equity in the flat and he owes £30k to his iva. He doesn't want any money from this house and I don't want any from the flat. My question is will the iva force me to release equity in this house to pay off his iva ?

Regardless of what each of you want from the properties, in law, you each own half of both of them and his share would have been pledged to the IVA in the form of equity release -- failing this an extension on the IVA -- and this will have to be honoured. It may be that the IP will agree to an extension without attempting equity release, but I would not put money on it.

As Breezy has indicated his iva equity release clause will need to be addressed first and then you can address the changes of ownership once the iva has closed and any restrictions in selling are lifted.

did you sign an RX1 form when his IVA started? This registers that his IVA form has an interest in your house.

Thank you for your reply. When he signed into the iva he only pledged the flat that he lives in and not the family home that I live in, I'm not sure if that would make a difference. They tried to make him do both but he refused and they eventually accepted just the one property as there would be enough equity in that. He also agreed to do the iva over 6 years not 5, again im not sure if he has a say in any of this or if the iva will just rule and say they will take money from the family home. Or if my only option would be to remortgage to release money, which with 3 children on my wage I know I wouldnt be able to afford to release that sort of money to cover the amount he owes

Wed Sep 01, 2021 7:13 pmBreezy wrote:

Regardless of what each of you want from the properties, in law, you each own half of both of them and his share would have been pledged to the IVA in the form of equity release -- failing this an extension on the IVA -- and this will have to be honoured. It may be that the IP will agree to an extension without attempting equity release, but I would not put money on it.

If the house has been excluded, as it sounds it has been, as well as covered by the extra year, then the creditors would have no call on it. In effect they are still benefiting as his share of the flat, which is included in the IVA, will increase to 100%, giving them more to call on should the need arise.

No I didn't sign anything to do with his iva, and was never asked to sign anything. They agreed that the other property we owned was enough.

Thu Sep 02, 2021 7:48 ambowline wrote:

did you sign an RX1 form when his IVA started? This registers that his IVA form has an interest in your house.

It sounds as though everything will be ok.