My ex seems to be getting himself deeper and deeper into financial trouble due to his alcoholism. (It’s chronic, will choose staying home and drinking over going to work or seeing his kids).
My issue: his name is still on the mortgage for the house that the kids and I occupy. I pay for everything for the house, mortgage payments, insurance and rates, repairs and upgrades. I manage, fairly well thanks to my savviness and financial smarts. Unfortunately, on paper, I don’t earn enough to apply for a new home loan in just my name. My LVR is also still fairly high.
The bank knows that we aren’t together, and that I have been making all payments on my own. But I’m worried about him declaring bankruptcy or otherwise.
Has anyone else been in this position, or is there someone that could tell me how they or their friend went about things?
6 Replies
Firstly, help him get into AA or some other form of long term councilling. He needs to fix his health before you consider making any financial decisions just yet. Its going to be a long road.
Once you've both exhausted that option like if it's met with resistance or doesn't work, then definitely have a plan B.
This isn't a situation where you can get the answers you need on a public forum. You need legal advice.
Sell the place...even if u have to rent, just get it all ut of the way before he brings u down financially too!
I would definitely suggest legal advice and then look at selling the house. Clear your debt then move on. You may need to rent somewhere more affordable. The bank knowing you're separated wont change anything if things go further south. Good luck!
I've sort of faced this. Depends how you are placed on the title. If you are tenants in common when he declares bankruptcy the banks will offer you first bid. Depending on the market it may be heavily reduced because it cost them less if you buy at a reduced rate. In the end I didn't face this but there were many outcomes depending solely on who you got as a trustee on the day.
Will he sign over the title to you?
Get a conveyancer to draw up the paperwork and get him to sign it.