What happens to Negative Equity in divorce?

By on August 11th, 2016

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If you are going through a divorce a looking to dispose of a troublesome asset in Negative Equity then both parties will be liable for the debt. Having signed the mortgage contract both parties are joint and severally liable for any debt or issue with the financial product.

EU Property Solutions have experienced in the past divorces which are quite “messy” and trying to solve a Negative Equity property in these cases is extremely trying. Often we are given conflicted stories from both of those involved and we must use our judgement to ensure that an outcome is beneficial for all those involved.

Other areas of confusion we have seen is when a couple divorced for some time and one member has assumed they take control of the property in question. Typically they assume a verbal agreement is all that is required but in fact they need their solicitor or representative to draw up the relevant agreements and have the other parties name withdrawn from the mortgage and property deed.

Although this is often a tricky situation to be in it is prevalent and it is important you take legal advice in divorce should property be involved.

Should you or anyone you know be suffering from Negative Equity overseas and the property is becoming a real headache then please call EU Property Solutions today on +44 (0)330 1241230 to arrange your free initial consultation. We have an excellent record at achieving successful results for borrowers in troublesome situations including divorce. EU Property Solutions can also provide telephone references where required. We look forward to meeting you.

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