Court order on house and creditors

[Hannah12]

Hi. I am in middle of getting divorced. I am in situation where we have pretty much agreed a settlement where ex gets paid a lump sum and I stay in the house. I want to stay in house because otherwise it incurs a hefty mortgage penalty.

However my ex has incurred some debt (about £37k that he has declared but he hasn’t disclosed properly even at FDR stage and has a history of financially deceitful behaviour). I am worried that if his name stays on the mortgage, any of his creditors could come after the house. My solicitor has advised that we would have a court order in place so even though his name is on mortgage, the equity in the house is not at risk. Is this true?

I am also looking at other options such as a guarantor because I just can’t face going to court against his creditors and risk losing more money - but mortgage company might not accept.

[Hannah12]

Would be really grateful for any advice

[Kati]

one for you maybe Peridot ??

[Peridot]

Hi Hannah12,
Sorry I've not been around for a couple of weeks.
As far as the property is concerned, in short yes the Court can make all manner of property adjustment orders that would cover the issue of your ex not being able to get his name off the mortgage. I assume your solicitor is aware of his non disclosure of debts in his form E? Is there any chance he has/will be made bankrupt? If so then the order your solicitor mentioned may not be possible. Provided he isn't bankrupt then the Court does have a wide discretion that will protect your property should he get into further financial difficulties down the line.
You're sensible looking at all the options and if there is someone you could use as guarantor and the Court have approved the property transfer to you as part of the financial settlement then this could also be a solution, as you say the mortgage lender would have to approve the guarantor of course.
Do take your solicitors advice, provided they have all the facts they are there to guide you and give you advice on the most likely scenarios you could achieve.