Protecting my share of equity in property

[wiseoldbird]

Hi, I'm writing on behalf of a dear friend. Her and her husband have sold their house and are due to move to a new property very soon. Contracts are about to be exchanged, although not signed yet. There is equity in their current property. She has not financially contributed to the mortgage of bills for the last 6 years. Mortgage for new property is in husbands name only and therefore her name will not be on the Deeds of the new property. How can she move forward ensuring that she protects her equity going forward? A Trust Deed has been mentioned. If she were to Divorce her husband going forward would she be entitled to half of all assets even though she has not contributed financially for the last few years? prior to 2013 she at times earned more than her husband and contributed quite significantly. Would it go against her if she set up the Trust Deed now if she then later divorced her husband?*

[Law Student 3]

If the property is used as the family home, both parties have an interest or right to the house when going through a divorce. However, there is no set formula for how the assets, including the house, shall be divided. It depends on the situation and circumstances of each case but factors such as the age of both parties, earning capacity, length of marriage, past and future financial contributions and the needs of both parties, will be considered when dividing the assets. As you friend is not on the deeds of the new house, the most important thing she can do now is register her home rights with the land registry, this means that the property can’t be sold, transferred or mortgaged without her knowledge. If a Trust Deed is created I would advise that you consult a solicitor to draft it because the intention needs to be absolutely certain, otherwise there is a chance that it could be deemed a sham in divorce proceedings, to prevent one party having access to the assets.