My Ex husband's IP is asking me to provide all property & rent income details

Get expert opinion. This is the place for new questions to be posted.
6 posts Page 1 of 1
3107TIGGA
Posts: 2
by 3107TIGGA » Tue Mar 20, 2018 5:03 pm
Hi, I'm looking for advise. My Ex and I separated in Dec 2011 and I remained in our property and continued to pay the mortgage in full. He has not paid a penny towards the property since this date. When he left I had a Solicitor draw up a Declaration of Trust as I had originally paid the deposit for the property in full. We both signed the agreement and this was witnessed and lodged with Solicitors. We also have 5 BTL properties which are rented out which I have managed since this date. These properties have cost a small fortune to maintain and I have spent circa 30K on maintaining and repairing as at one point the mortgage company was going to repossess 2 of them so I paid for all the repairs. He then entered into an IVA in October 2015. Recently I offered him 17k (which was a very fair offer) to buy him out of 'our house' and he agreed. His IVA IP have now come back to me saying that they have valued the property at a much higher figure and they want 3 times this much for his financial interest. This is ridiculous as the property is not worth that much so I'm basically giving him money. I want to sell the property as the mortgage is really high and I no longer want to live here. How can I sell if his IVA want 3 times the amount that is due to him? Can I put the property on the market, sell it, then give him his share of the equity as per the Declaration of Trust? Also his IVA are asking me to provide details of the rental income received for the 5 BTL properties for the period he has been in his IVA as presumably they want 1/2 of it for his creditors. This income is paying me back for all the money I spent on renovating them fit for purpose. Looking for some advice please and thank you
User avatar
Foggy
Forum Expert
Posts: 27271
Contact
by Foggy » Tue Mar 20, 2018 5:26 pm
You would be better served going to CAB and maybe a chat with a solicitor experienced in insolvency. He, and by extension, his IP / creditors are only entitled to a grab on his share of the equity, so you need to present the Declaration of Trust in evidence of his limited share. If he was going bankrupt the OR would consider having the Declaration set aside, being only 4 years prior to the insolvency and the IP here might take a similar view, but has no real power to do so. His ultimate sanction would be the failure of the IVA ( which might, in turn, lead to BR ).

Again it is down to you to prove any share of the rental income he might be getting as, on paper, they will claim 50%. Private agreements and arrangements count for very little and you will need to plead your case. Ultimately, if they decide 50% is due, it is your ex's responsibility to produce this money, not yours. Your ex might then pursue you for "his share".

The chances are that the IP has placed a restriction n the deeds, so you will not be able to sell without his agreement.
3107TIGGA
Posts: 2
by 3107TIGGA » Tue Mar 20, 2018 5:51 pm
Thanks for reply. His IVA were fully aware of Declaration of Trust when they set up IVA as I know they had a copy & accepted it. This basically states that the money I’ve put in comes back to me. Can I instigate a sale of the property? Then pay his share of equity to his IVA? They are insisting the property is worth much more than it is & are asking for a huge payment to buy him out. Can I insist on a valuation as I know they have not had one carried out. Also do I have to provide details of BTL properties to them or state that it is up to my ex to provide this info as it’s his IVA?
User avatar
Foggy
Forum Expert
Posts: 27271
Contact
by Foggy » Tue Mar 20, 2018 6:44 pm
3107TIGGA wrote:
Thanks for reply. His IVA were fully aware of Declaration of Trust when they set up IVA as I know they had a copy & accepted it. This basically states that the money I’ve put in comes back to me. Can I instigate a sale of the property? Then pay his share of equity to his IVA? They are insisting the property is worth much more than it is & are asking for a huge payment to buy him out. Can I insist on a valuation as I know they have not had one carried out. Also do I have to provide details of BTL properties to them or state that it is up to my ex to provide this info as it’s his IVA?



You can instigate a sale, but it will stall when searches are made and a restriction shows up --- in rare cases no restriction is lodged, but this is unlikely. The IP will probably lift the restriction on the undertaking that the sale proceeds go to him and he will then take what he deems is due and return the balance to you.

On the BTL question, you cannot be compelled to provide figures, however failure to do so could result in the IVA being failed. This, in turn, could result in BR proceedings and the risk of loss of all properties, including your home.
User avatar
MerlinL14
Posts: 1485
by MerlinL14 » Tue Mar 20, 2018 6:47 pm
3107TIGGA wrote:
Thanks for reply. His IVA were fully aware of Declaration of Trust when they set up IVA as I know they had a copy & accepted it. This basically states that the money I’ve put in comes back to me. Can I instigate a sale of the property? Then pay his share of equity to his IVA? They are insisting the property is worth much more than it is & are asking for a huge payment to buy him out. Can I insist on a valuation as I know they have not had one carried out. Also do I have to provide details of BTL properties to them or state that it is up to my ex to provide this info as it’s his IVA?

You are totally in your rights to refuse to give any financial details of anything to his IP, you are not bound by law or his IVA contract. His IP has no way of forcing you to comply with his/her request. Saying that, as has been suggested, I would seek professional council to ensure you do not end up paying more than you are willing to Part with if they make him BR.
User avatar
Lisa Thomas
Industry Expert
Posts: 7030
Contact
by Lisa Thomas » Wed Mar 21, 2018 10:13 am
If you sell the property then there will shouldn't be any dispute over the market value however there may be a dispute over the Trust deed as it was signed when your ex was insolvent.

I assume and hope that the solicitors thought and dealt with that at the time.

Personally I would pay an insolvency Solicitor to act for you to deal with the Supervisor in order to get a deal done to buy your ex's interest.

I can recommend a specialist solicitor if you want to contact me.
6 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 41 guests