What happens to negative equity when you divorce?

What happens to negative equity in case of a divorce? I’ve searched the the threads but very litle on this issue.

There’s substantial precedent on dividing up assets but what if there’s clear headroom between what a property is ever going to be worth and what the outstanding mortgage is? Can the judge order that one party takes on more than half the debt? What would a split mortgage be secured on? Could this be imposed on the lender by court order?

There must be quite a few people out there in this situation at the moment and it must have come before the courts by now. Any information appreciated.


Short answer is you get to keep it !

Sometimes thats all you do get to keep :angry:

Dragging this one up again.
(The troubles of an acquaintance of mine put this in my head)

Are courts in Ireland in the habit of splitting assets any other way than 50/50?
So then what happens with debts?

On a side note, I’m seeing a HUGE amount of ‘just seperated’ viewing my rentals.
Quite often my properties are the very first place they go to upon leaving their house.
Any crack in a marriage and the current financial situation tends to rip it apart.
Negative equity definately has consequences on many marriages.

Rule of thumb - if there are no kids, the wife leaves - if there are, the husband gets kicked out.

Don’t know what happens to the debt.

so much for divorce being down because people can’t afford it

on the flipside there must more ‘family’ homes (assuming kiddies haven’t actually arrived) coming up for rent when the couples separate?

General rule under Irish Law, it seems:

  • the wife gets the house and the kids, the husband gets the bedsit and the bills.

Will be interesting to see what happens in future years in the case of breakups of same-sex marriages and/or civil unions - especially in the case of the increasing likelihood of their being children involved - quite a headache for the Family Law courts.