Possible divorce complications.

[petedaw]

My Sister-in-law, whose husband died recently, is considering putting her house (value approx £180k) in joint names with her only daughter.
Should this daughter's marriage break up what would be the implications for my s-i-l?
I assume the daughter's half of the equity would go into the marriage pot to be shared with the husband and could she be forced to sell the house to pay him off if the cash was not available?
She is also thinking of lending the daughter money to put into an ISA, can I assume this would also have to be split if the couple divorced?
Thanks,
pete.

[PintoPotts]

Hi Pete

We are a firm of Solicitors specialising in Family Law (as well as Personal Injury) and we are happy to answer your query.

Re the house - yes indeed you are quite correct if the property were put in joint names between your sister in law and her daughter in any subsequent divorce proceedings of the daughter her half of the house would be placed in to the matrimonial pot for division. The Court does have the power to order a sale if appropriate in those proceedings , your sister in law would have to be joined in to the proceedings.


Re the ISA - this would depend if it could be proven that this was a genuine loan and not a gift . If a loan - why is it being lent and it would have to be documented along with the terms of payment . If it is in fact a gift then it would be added in to the pot for division .


Regards

Pinto Potts LLP Solicitors

[PintoPotts]

Re the house - yes indeed you are quite correct if the property were put in joint names between your sister in law and her daughter in any subsequent divorce proceedings of the daughter her half of the house would be placed in to the matrimonial pot for division. The Court does have the power to order a sale if appropriate in those proceedings , your sister in law would have to be joined in to the proceedings.


Re the ISA - this would depend if it could be proven that this was a genuine loan and not a gift . If a loan - why is it being lent and it would have to be documented along with the terms of payment . If it is in fact a gift then it would be added in to the pot for division.

Hope this helps, Anne


The views expressed are that of the individual, not those of Pinto Potts Solicitors

[petedaw]

Anne, thanks for your reply, very helpful.
Pete.