Family Application D11 notice for a third party to join as a party to an agreed FDR

[AndieD1967]

Hi,

My ex-wife and I are in the Family Court on Monday 8th August. We agreed a FDR arrangement on 26th February whereby my creditors would be paid out of the equity of our house and she would keep the rest. The house is on the market for £1,595,000 and we have two parties interested but neither has yet made an offer. One of my business creditors is owed £300,000 and is getting interest at 4.5%. They have issued a D11 Application to the Family Court to join the divorce and have requested the price lowered to £1,400,000 for a quick sale, so they can get a quick sale and their money. There is a restriction on the register and the equitable charge contains a power of sale. They were unable at the time to register a legal charge because my ex and I hold the property as Tenants in Common in unequal shares with her having an additional £200,000 stake - this was agreed over ten years ago. My ex and I have submitted numerous witness statements defending the action because a lot of what has been argued - expert witnesses, etc. - is simply wrong. If they succeed my ex and children (18 & 17 - The latter has mental health issues) will not have enough equity money left to re-house near her work (Primary school teacher). We have now received an estimated costs order for £13,000 and apparently a QC is coming to represent the creditor.

I am not getting anything out of this at all but don't want to see my family homeless. Can you please help as neither of us can afford legal representation and my ex is suicidal..

Regards,
Andrew

[Openlaw15]

Re: Family Application D11 notice for a third party to join as a party to an agreed F

Hi,

My ex-wife and I are in the Family Court on Monday 8th August. We agreed a FDR arrangement on 26th February whereby my creditors would be paid out of the equity of our house and she would keep the rest. The house is on the market for £1,595,000 and we have two parties interested but neither has yet made an offer. One of my business creditors is owed £300,000 and is getting interest at 4.5%. They have issued a D11 Application to the Family Court to join the divorce and have requested the price lowered to £1,400,000 for a quick sale, so they can get a quick sale and their money. There is a restriction on the register and the equitable charge contains a power of sale. They were unable at the time to register a legal charge because my ex and I hold the property as Tenants in Common in unequal shares with her having an additional £200,000 stake - this was agreed over ten years ago. My ex and I have submitted numerous witness statements defending the action because a lot of what has been argued - expert witnesses, etc. - is simply wrong. If they succeed my ex and children (18 & 17 - The latter has mental health issues) will not have enough equity money left to re-house near her work (Primary school teacher). We have now received an estimated costs order for £13,000 and apparently a QC is coming to represent the creditor.

I am not getting anything out of this at all but don't want to see my family homeless. Can you please help as neither of us can afford legal representation and my ex is suicidal..

Regards,
Andrew

Andrew, you and your wife hold the legal interest as tenancy in common based on non equal shares. Whose name are the debts in, if the debts are in your name only, then the creditors can only take from your share. This is the beauty of a tenancy in common, in that the creditors cannot come after the house but only security against the debt, or where the debt's via an equitable charge on the property, it's merely security against the debt. In short there is no proprietary (property right) for the creditors. The legal interest also means the property is protected via a trust of land to hold the property for yourself and the family. Remind the judge that the creditors interest is merely security and whilst the property enjoys a good market value (ie equity), that their interest is secure. In other words, the security against the debts is sufficient and the creditors have no right to force a quick sale because they have no proprietary interest.

[AndieD1967]

Re: Family Application D11 notice for a third party to join as a party to an agreed F

But then why would they risk £13,000 of legal fees?

[AndieD1967]

Re: Family Application D11 notice for a third party to join as a party to an agreed F

Can they get costs for an application order in the Family Court as it appears to be an exception to the general rule for cost?

[Openlaw15]

Re: Family Application D11 notice for a third party to join as a party to an agreed F

But then why would they risk £13,000 of legal fees?

Because they think they can force a sale - as that's what they want their lawyer to do. So, just explain the creditor's interests are safe.