Transfer of Equity

[RogeDodge]

My partner has separated from her husband and is going through the process of transferring equity and getting the deeds in her sole name for the property that we live in.

The solicitors have bought up the issue of Transfer at Under Value/Deed of Gift to her attention. They have stated this is an indemnity insurance to protect my partner and lender in the event of her husband going insolvent in the next five years.

I have a number of questions related to this;

Does my partner have to take out this indemnity insurance?
Is this an easy way for the solicitor to make more money and using the fear of a creditor coming after half the house?
My partner's husband has a limited company and if this was to go bankrupt would this be a case for the creditors to go after the property and where the indemnity insurance would be useful?
Does a creditor automatically have the right to go for half the property or is there a case to prevent this any way, indemnity or no indemnity insurance?

Many questions I know, but your thoughts would greatly be appreciated so that my partner can make an informed decision whether to take out this indemnity or not?

Many Thanks

[innocenti]

If the house and mortgage are soley in your partners name and this was transferred over in the correct way (not as in the ex is about to go bankrupt and has only taken himself off the mortagage to avoid the creditors getting hold of the house) then I cannot see how his creditors would have a claim.

If his name is not on the deeds then the house doesnt belong to him and the creditors wouldnt have a claim.

If the ex is to remain on the either the deeds or the mortgage then the insurance would be a good idea.

[RogeDodge]

Thank you innocenti