Marrying into negative equity, what are the implications?

J

Jenni81

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Earlier this year I purchased a house in my own name. The purchase price was the very maximum I could afford/the bank would lend me but I love the house and also feel it is a very good investment (though could see myself happily living there for life). I am very lucky to be in a permanent job earning 40k pa.

My boyfriend, having purchased in 2007, is in negative equity to the tune of at least €100,000 and is struggling big time to meet his liabilities as they fall due. He also has 20k in personal debt. His salary has dropped and he is a couple of months in arrears on his mortage. He is renting out his house and lives with me.

We want to start a family (clocks are ticking!).

What would the implications be if we were to get married? Would I be expected to contribute to his debt? If he went through personal insolvency/bankruptcy would this affect my credit rating as his spouse? Would we be in a better position overall if we were not married?

I would prefer to be married before having kids but at the same time I want to do what is best for us and our future family.
 
Your debts will be separarate even if you are married.

However, if you are married, the bank may well ask him for your financial details if he is trying to negotiate a deal with them. He is under no obligation to give these details, but then they are not under any obligation to offer him a deal.

However, if he lives with you, he may develop a claim to your home, as it's the family home. He could claim that he helped you pay the mortgage. However, the bank would not be able to claim that he has a right to a share in your home.

You probably need to ask yourselves whether you can afford to have a child at this stage. You might try to resolve the financial issues first.

Your boyfriend should look at the options under the Personal Insolvency Act.
 
Listen, you should separate the financial discussions from the talk about having a baby. You don't say how old you are, but if as you say the clock is ticking and you really want to have a baby then just go for it. Money problems become really insignificant IF problems conceiving arise. Take if from me. Babies are not that expensive:)
 
Jenni81 - you sound as though you have a very sensible head on your shoulders and correctly raised the issue of raising a baby in a potential world of debt. Please do not listen to the foolish advice of Geri - advice like that has too many families in awful positions.
 
Yes Jenni81, a "potential world of debt" should certainly make you decide to remain childless for the rest of your life :-/


(not)
 
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