# Fiancee has high level of debt



## mestuck (13 Oct 2010)

Hi,

I am getting married in January. My fiance already owns a house that he bought at the height of the boom and currently its in €70,000 (or higher) negative equity. When we met, he also had a high overdraft and I took out a loan to cover this for him.

At the moment, my fiance is expecting to be made redundant. If he is, he will not have the income to cover his mortgage and I will be unable to cover it. I expect he will have to walk away from the house as it is not in a suitable place or of a good enough size to live in with a family. I don't want to throw good money after bad and I would be able to get a mortgage in my own name if we decided to start over.

Can anyone advise me on the responsibility of a wife towards her husbands debt? In other words I am wondering if is forced to walk away from this house after we are married, will I be legally obliged to carry the debt? Also, my fiance is a resident of Northern Ireland.


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## Sunny (13 Oct 2010)

Not unless your name goes on the mortgage. A husbands debts don't automatically become yours just as a huge bank balance doesn't either! 

Obviously it will impact on his credit record if he defaults and therefore your ability to get a joint mortgage. Also I am not sure by what you mean 'walk away' from the house. It's not that easy.


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## mestuck (13 Oct 2010)

Thanks for that! I only mean to use the term 'walk away' loosely. I know that there would be implications and that the bank would follow the debt.
My real worry is that if I have knowledge of his mortgage before I marry him that I would have a certain responsibility for it, or if he is placed in a position that he has to surrender his keys would he need to do it before the wedding so I won't be liable.


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## wbbs (13 Oct 2010)

It is also highly unlikely you will be able to get a mortgage in your own name only once you marry.  Most banks, to best of my knowledge, require mortgage on family home to be in both names so his credit rating and outstanding liability will come into it.


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## Bob Nellies (14 Oct 2010)

no-one will want to tell you this, but here goes..

do NOT marry him yet!


sort out the finances first...why did he let you take out in your name to clear his debt? on what did he incur this debt? Was he working while you were paying it off?  

be very, very careful!


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## missdaisy (14 Oct 2010)

OP, are you sure you know the full level of debt here? Was the high overdraft the ony debt your fiance ran up?  

Will the redundancy payment be large enough to cover mortgage payments while your fiance is looking for another job?


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## RIAD_BSC (14 Oct 2010)

It would probably be better if posters just answer the OP's original query instead of volunteering bad advice on her personal life.

If the OP believes she can afford to get married - and there is absolutely no evidence that they cannot afford to get married (you can get married for the cost of a registry office ceremony) - then it is beyond the pale, IMHO, to offer unwanted advice on such a sensitive personal issue. This is a money forum, not an agony aunt column.

To the OP - his previous debts have nothing to do with you and you can't be chased for them. There will be no problem taking out a mortgage on your own, if your name is also solely on the deeds, whether you're married or not. But your fiance would be better off facing his debts and trying to work out a payment plan with the bank, if they allow him to sell in NE, rather than letting them chase him. Also, if the bank secures a judgement against him down south, that could have implications for any joint assets you may acquire in future years. He needs to think carefully about he proceeds. Is he due significant redundancy?

Good luck with your wedding


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## mf1 (14 Oct 2010)

"There will be no problem taking out a mortgage on your own, if your name is also solely on the deeds, whether you're married or not."

Not true. If they are married and the property is to be their famiy home, then a lender will require them both to be on the title and on the mortgage and, given the fiance's track record, this is likely to be a major issue.     

"then it is beyond the pale, IMHO, to offer unwanted advice on such a sensitive personal issue. This is a money forum, not an agony aunt column."

It is precisely because money issues are such a big part of relationships ( and the way that people cope with same) that it is imperative that OP considers her position. OP needs to be aware of the implications of marrying someone in debt.

mf


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## jambo (15 Oct 2010)

Get paid professional legal advice with proper recourse, don't take legal advice from anonymous posters on an internet forum.


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## Sunny (15 Oct 2010)

jambo said:


> Get paid professional legal advice with proper recourse, don't take legal advice from anonymous posters on an internet forum.


 
Professional legal advice about what? Whether you should marry a man in debt or not?


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## jambo (19 Oct 2010)

mestuck said:


> Can anyone advise me on the responsibility of a wife towards her husbands debt? In other words I am wondering if is forced to walk away from this house after we are married, will I be legally obliged to carry the debt? Also, my fiance is a resident of Northern Ireland.


Professional legal advice regarding her question, not the unsolicited relationship advice.


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## Sunny (19 Oct 2010)

jambo said:


> Professional legal advice regarding her question, not the unsolicited relationship advice.



You don't need to talk to a solicitor to know that you don't take on your husbands debt unless you choose to do so but that there implications when looking for something like a mortgage. There is a reason why pre marriage courses spend a lot of time on the issue of finances. It is a crucial part of any relationship as people have pointed out. Still can't see you think she needs a solicitor or what you think a solicitor would say.


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## jwts (19 Oct 2010)

It seems to me that the assumption in most of the replies is that this guy has a big problem. Negative equity is only a temporary issue as with time the property value will rise. It is only a problem if the borrower can not service the debt. My suggestion would be to look at renting the property out. If the loan is a tracker mortgage the rent is likely to cover the interest. 

Even if the rent will not cover repayments, a bank would see that it is the best option for it and would allow for the shortfall to be rolled up into the loan, if it could not be matched in another way.

If the property is retained you should not be under pressure to buy a house to live in and renting should be considered in the interim. This would be the same situation as if he were to 'walk away', as you have to live somewhere.

If you do wish to purchase, you will be entitled to mortgage interest relief under current legislation - which may help in your dealings with a bank.


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## Magpie (19 Oct 2010)

If rented out a tracker mortgage is lost. Bad advice there. And walk away from the house? Doesn't work like that, you can't just walk away, you're still liable.


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## PaddyW (19 Oct 2010)

Tracker mortgage will not necessarily be lost. You'd have to check the T&C's first to see what would happen or consult the bank themselves.


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## jambo (20 Oct 2010)

Sunny said:


> You don't need to talk to a solicitor to know that you don't take on your husbands debt unless you choose to do so but that there implications when looking for something like a mortgage.


I admire your confidence, I hope it's from a position of enlightenment rather than ignorance. I personally would not be so confident in my understanding of family law and would consult a professional, if only to be certain of how to structure my finances.


jwts said:


> Negative equity is only a temporary issue as with time the property value will rise.


Meanwhile you lose thousands of euro in interest payments. Willingly entering into negative equity is different to making the best of a bad situation that has evolved.


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## tvman (21 Oct 2010)

jwts said:


> Negative equity is only a temporary issue as with time the property value will rise.



interesting perspective,  how long do you reckon before we're back at 2006 prices (even in nominal terms)?

tvman


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## Complainer (21 Oct 2010)

Worth noting that UK bankruptcy legislation can be much easier than Irish legislation. It only takes two years to get out of bankruptcy in UK compared to 12 years in Ireland.


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## BONDGIRL (24 Oct 2010)

When I married my husband he had some debts.  But it didn't matter as I married him for a long life together, supporting eachothe in the good and,bad times
Think you news to really think your wedding through as life us not all rosey all the time and mybe instead of worrying about Wat debt u might have, support him and help him.


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## Shirazman (27 Oct 2010)

mf1 said:


> "There will be no problem taking out a mortgage on your own, if your name is also solely on the deeds, whether you're married or not."
> 
> Not true. If they are married and the property is to be their famiy home, then a lender will require them both to be on the title and on the mortgage and, given the fiance's track record, this is likely to be a major issue.
> 
> ...


 

Couldn't agree more.   The financial health of one's partner is every bit as important as their medical and psychological health are.

When it comes to marriage, it's vitally important to use the left hemisphere of the brain (logic) just as much as the right hemisphere (emotion)!

Very best of luck to the OP - but remember: act in haste ... repent at leisure!


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## FioBi (27 Oct 2010)

A friend of mine was ina similiar situation she married a man from Northern Ireland with considerable bad debts. She was not liable for those debts as they were incurred before she met him.

He did however go through bankruptcy proceedings in the North and is now clear from debt after 1 year.

They did seek legal advice before they got married and afterwards on how to deal with everything properly and you should do the same.

I hope this can give you some hope.


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