Family Law for unmarried couples
Part 4
Bankruptcy, death of a loved one, and your property.
Bankruptcy
If your partner is declared bankrupt, any interest that they have, in jointly owned property with you, is taken over by those who then look after it. The Trustees in Bankruptcy. The trustee can apply for a share of your home so that the proceeds of your partner’s property interest can be used, to pay off as many of their creditors as possible.
If you’re on the receiving end of this problem, you should have some time to make alternative arrangements for your accommodation with or without children.
Bear in mind that if a year of bankruptcy has passed, it is unlikely that the Court will be able to postpone the sale if it’s the house you’re worried about.
Death of a loved one
Let’s say one of you in the relationship passes away.
In this instance, if you each own it equally and it says so on the property deeds, the survivor gets to own the property in its entirety, which at least provides some security in a time of loss.
If, upon the death of your partner, the property is owned between you in a different way, by an express document showing your respective ownership percentage, then your partner’s will or intestate (if there isn’t a will), determine how their share is to be distributed. So, the property may have to be sold if you can’t afford to buy the share back.
Consider making a will. Do call and enquire with one of our experts for a free initial discussion if this or any other query arises.