Q. My wife and I have separated after 14 years of marriage. We have two children aged eight and ten. We agreed that my wife would own the family home which has a small mortgage and I will own our other two properties (our bach and a rental), which have a large mortgage over them. We agreed we would each be responsible for paying the mortgages on our property(s).
A couple of months ago, my wife left her job for no reason and stopped paying the mortgage on the family home. The bank is chasing me for payment, even though I have advised them of the situation. Is there any way around this? The mortgages are still in both our names.
Also, we have a family trust which contains these three properties. My wife and I are trustees and the beneficiaries are my wife, myself and our two children. What happens with the trust?
This NZ Herald Ex-Files article explains what happens to a family trust in a separation.