Module 13 - PI Matrimonial Home

Question 1

Step 1 of Seizing the Matrimonial Home?

Answer 1

Use it or Lose it - Section 283a - 3 years

Question 2

4 Ways to ‘Use It’?

Answer 2

Realise Interest;
Order for Sale;
Order for Possession;
Obtain Charging Order

Question 3

What is Step 2 of Seizing the Home?

Answer 3

Calculate the Equity - is it actually worth trying to sell the property?

Question 4

What do you need to calculate the quite of a home?

Answer 4

Value of property;
Amount owed to the mortgage company;
Details of any other charges

Question 5

What is the threshold for a low value home?

Answer 5

£1,000

Question 6

What is Step 3 of Seizing the Home?

Answer 6

How much equity vests in the property? Who owns it / how is it split / equitable exoneration.

Question 7

Joint Tenants v Tenants in Common

Answer 7

JT - Each person has 100%
TIC - Interest is split - does not have to be 50/50

On bankruptcy, JT is severed and the owners become TIC

Question 8

Who can take Legal Title?

Answer 8

Sole Name;
Joint Names;
Written in Trust

Question 9

3 Main Areas where claims for a larger share are made:

Answer 9

Capital Improvements;
Payment of the Deposit;
Mortgage Payments

Question 10

How does Capital Improvements pay out in the Property?

Answer 10

They are entitled to the lesser of either:

The increase in value of property;
Sum expended on improvements

Question 11

There is a presumption that the non-bankrupt spouse will be exonerated from liability

Answer 11

True

Question 12

What is Step 4?

Answer 12

Secure the Equity - SMILE
Secure Property;
Mortgage - notify mortgagee(s) of your appointment;
Insure - ensure appropriate poinsurance cover is in place;
Land Registry Restrictions - register RX1 restriction from HM Land Registry;
Expert Valuation - obtain full valuations

Question 13

What is Step 5?

Answer 13

Sell the Property

Offer to Spouse;
Voluntary Sale;
Order for possession and sale;
Obtain Charging Order

Question 14

What is Step 5?

Answer 14

Exceptional Circumstances

Question 15

What is Step 7?

Answer 15

Section 313 Charge - the last resort…

Question 16

What is Section 313 Charge?

Answer 16

Trustees can apply to Court for a charging order.
Done only if they are unable to realise the property in any other way.
Amount charged is value of bankrupt’s estate at date of charging order and interest.

Question 17

Three Key Cases in Matrimonial Law

Answer 17

Treharne & Sands v Forrester - matrimonial (divorce) order post petition but before order then insolvency law trumps matrimonial law.
Mountney v Treharne - matrimonial order was pre petition, pre-bankruptcy order takes precedence - timing
Hill v Haines - transfer of property through divorce was not considered TUV but judge says it COULD be TUV if divorce was a sham

Question 18

What are the Exempt Assets?

Answer 18

Tools of trade; books, papers, correspondence, vehicle, items for personal use; clothing bedding, pension fund, vacant ecclesiastical benefice, residential tenancy, items held on trust, student loan, income? Proceeds of crime

Question 19

What do IPO and IPA stand for?

Answer 19

Income Payment Order (court ordered);
Income Payment Arrangement (voluntary)