What happens to my mortgage after a divorce?
Within divorce proceedings, the court can order that a property is sold and that the mortgage is discharged from the proceeds of sale before the remaining balance is distributed to the parties, thus bringing the mortgage to an end.
The court also has the power to order that a property owned in joint names is transferred into one of the spouse’s sole name. However the court cannot order the mortgage provider to transfer the mortgage into one of the parties’ names. A number of options are available to resolve this. Depending on the financial circumstances, the spouse receiving the property may be able to re-mortgage the property into their sole name. If that is not possible and the mortgage has to remain in joint names, the court may require the spouse retaining the property to be responsible for the mortgage and provide an indemnity to the other party so that if they stop paying the mortgage, the other spouse can take action against them. Alternatively, in certain cases, a court may transfer the property into one spouse’s name but order that the other spouse continues to pay the mortgage, perhaps for a period of time such as until children reach a particular age.
Related FAQs
The Commission has provided guidance as to measures which Member States can introduce without notification. These include:
- Measures which apply to all businesses within a Member State (for example the furloughing measures introduced by the UK Government)
- Measures providing support direct to consumers
- Measures which are already exempt from the notification requirement (discussed further below).
To respond to the crisis the European Commission has also issued a temporary framework to provide a basis for emergency aid to be notified for approval. The framework is initially in place until 31 December 2020. The Commission continues to keep this under review and has twice widened its scope to allow more types of aid to be notified. The type of measures covered include:
- The provision of guarantees (including guarantees for 100% of loans)
- The provision of loans at low interest rates, at zero interest rates or subordinated to senior debt
- Measures to support liquidity needs or to alleviate difficulties caused by the current crisis
- Measures to recapitalise businesses
- Measures to assist sectors hit particularly hard by the current crisis (eg transport)
- Measures targeted at COVID-19 such as research and development or production of products related to tackling the virus
The Commission has approved a UK Government “umbrella” notification to allow UK public authorities to adopt the measures permitted by the Commission framework. Therefore public authorities in the UK can use the Framework without notifying individual measures or schemes to the Commission.
Yes, however holiday pay during furlough must remain at the normal rate of pay and not the reduced furloughed rate. You can still claim for this period under the scheme but you will be responsible for any amounts beyond the maximum you can claim. Employers have flexibility to restrict when leave can be taken both during and after period of furlough in the normal way.
If an employee usually works bank holidays then the employer can agree that this is included in the grant payment. If the employee usually takes the bank holiday as leave then you would either have to top up their usual holiday pay, or give the employee a day of holiday in lieu.
The Bill allows the Secretary of State to make regulations to temporarily extend various filing date deadlines for companies. These include deadlines for filings accounts, confirmation statements, charges register, director and secretary appointments and resignations. The extended period must not exceed 42 days where the existing period is up to 21 days, or 12 months where the existing period is 3, 6 or 9 months.
Unfortunately, losses caused by pandemics are not often covered expressly under standard policies, as the risk has been difficult for insurers to price and understand.
Even where additional cover in respect of notifiable diseases has been purchased, it typically will not include Covid-19 within the range of diseases covered by the policy. If the policy includes a list of notifiable diseases, and which does not include Covid-19, it is very unlikely that cover will be available for pandemic-relates losses.
The most common types of covers that could be afforded by insurance policies for coronavirus-related losses and liabilities are traditional business interruption insurance, contingent business interruption insurance, liability insurance, as well as cancellation and abandonment insurance.
The reality of these unprecedented times is that enforcement of health and safety legislation by the HSE (particularly through the criminal courts) in relation to Covid-19 is an extremely unlikely outcome.