Interspouse transfers to avoid debt

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Bronte

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Sorry if this is the wrong forum.

Can a spouse transfer a house it to the other spouse to avoid the bank repossessing the house if in default with other debts? Is the law society looking at this in relation to debt collection reform?
 
was mentioned yesterday in relation to a former director of anglo-irish that they were looking to declare the transfer illegal, i'm not sure how though.
 
If the conveyance is for the purposes of defeating an existing debt, then it can be set aside.

Otherwise everyone in the country would be at it, and the creditors would never get paid.
 
I'm wondering how these transfers actually take place.

If the house is mortgaged the transfer cannot take place as bank/solicitor has deeds and mortgage it noted but if the house deeds (unmortgaged) are used as security for a loan would the bank not look to hold the deeds as security so also the transfer would not be possible?
 
The Anglo issue may be a bit different.
The property in question is in Florida and is their PPR and registered as such in USA.
Laws on property very different there it seems.
 
Bronte said:
I'm wondering how these transfers actually take place.

If the house is mortgaged the transfer cannot take place as bank/solicitor has deeds and mortgage it noted but if the house deeds (unmortgaged) are used as security for a loan would the bank not look to hold the deeds as security so also the transfer would not be possible?
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Think of it in terms of X number of assets, Y number of loans. Family home or indeed some other asset has no mortgage and has not been used as security for any loan. If debts accrue then a creditor is entitled to attach a judgment to any asset belonging to the debtor - including the family home. Now, if an asset is not in the debtors name but someone else's name, because debtor did a transfer many moons ago, or indeed does not own that asset at all, then a creditor cannot seek to attach a judgment to that asset. However, if a debtor sees trouble coming down the line and does a transfer now, then a Court is likely to set that transfer aside on the grounds that it was done with the intention of evading creditors.

mf
 
Thanks for that MF1, my understanding in this particular case was that the home was used as security but this may be incorrect.

Let's take another scenario, family home transferred into wife's name and transfer done legitimately 10 years ago. Husband pays mortgage and always has done so as wife was a stay at home wife. Would the creditor not be able to go after the home because even though the home is in the wife's name the husband holds all the equity in reality?

Also the family home protection act (FHPA) which means both spouse's have to sign for a loan, but if the loan is not secured on the home and the only one spouse signed for the loan, how does that come into play.
 
Let's take another scenario, family home transferred into wife's name and transfer done legitimately 10 years ago. Husband pays mortgage and always has done so as wife was a stay at home wife. Would the creditor not be able to go after the home because even though the home is in the wife's name the husband holds all the equity in reality
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Bronte, a bank could not touch the house unless he is the registered owner or joint registered owner.
 
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