I have rented my property to my brother on an Assured Shorthold Tenancy for the last 4 years. I pay for the mortgage, insurance some bills, and make rent demands like any regular landlord. He lives their with is spouse and children. Rent is charged under the terms of the AST I hold in agreement.
The tenancy is in rent arrears but where he is my brother I have not taken formal action of recovery and are naturally more lenient with him as a family member,
My concern is that with his spouse about to divorce him (it is still early days) that my property asset is at risk from being included in the martial pot as I have perhaps shown more charity as a Landlord than I would have compared to a non-family member, however, that is subjective, as despite being my sibling I have a signed agreement, issued tenancy paper work, issue rent statement of arrears etc. like any regular landlord.
Any advice would be appreciated.
Hi, thanks for your question. Assuming that the property is owned by you in total, and not your brother, it will not be counted as an asset in your brother's potential divorce. It does not form part of the marital pot. However, the debt (the arears) that are accumulating would be noted in his financial disclosure. As it is a debt for housing of the family, it is quite likely that the debt would be treated as a 'family debt' and for the purposes of the disclosure, assumed to be shared between your brother and his wife. Please ask your brother to call us if he needs help separating amicably. He can get in touch on 020 3004 4695.
Hi Woody, thank you for getting in touch. As your situation is complicated, we recommend booking a free 15-minute advice with one of our Divorce Specialists to see if we can help you further with this.