Property transfer after divorce, what does this mean?

[TheMotherOfAllDilemmas]

I am signing the paperwork (transfer or equity questionnaire) and there is a part I do not understand"

"6. I understand that if the amount to be paid for the outgoing party's share of the property does not represent the full market value of that share that it might be considered to be fully or partially in the nature of a gift. Under current legislation, if the party making a gift is made bankrupt within 5 years of the Transfer then the appointed Trustee in Bankruptcy may set aside the Transfer"

I am buying my ex out, after he accepted an offer under the asking price of the FMH from another person. So... the house is valued at 300,000 but I am buying it for 275,000 (which is the same as the offer he accepted from another person), he gets 30% of the equity after previous mortgage and property transfer expenses have been covered.

Not understanding the paragraph between the quotes above, I'm wondering if it should be better to pay him his share as if the house was worth 300,000 instead of 275,000. Are there any risks if only paid him his share at 275,000 value?

Thanks in advance.

You'd have to wonder if the house is actually worth £300k if that's the only offer you've got. I'm assuming that there are valid legal reasons he's getting 30%. I also assume you're not married.

Bankruptcy would only be an issue if he was insolvent as a result of the transaction. The conveyancer can put a declaration of solvency in the transfer, and if needed you can get cheap insurance.

I suspect that's there to stop people signing over property at a nominal amount in order to hide assets from the TIB.

Thank you for your messages, I guess more information is required so here it is:

We were married, the court order says that the equity of the house has to be divided 70/30 in my favour once all the costs of sale and canceling the previous mortgage have been paid.

The house was in the market for 300K, at that price I couldn't afford to buy him out, at £275k I could. As I'm living in the house, I have priority over the other person who put an offer.

The paragraph in my OP was taken from the standard agreement provided by the conveyancer of the mortgage lender.

What happens if he gets bankrupt? what happens if I do?

I thought it would be a standard paragraph for people getting divorced rather than a standard one... The document comes from the solicitors of the lender (bank) who had nothing to do with either of us, the present or previous solicitors/barristers involved during the court process.

BTW what is TIB?

As I posted. Get the declaration of solvency. It is very standard. That's what your conveyancer is for.

How much the declaration of solvency would be? how about the insurance?

Babybarrister, could you please elaborate?

Many thanks

If he is solvent at the point of the transfer, and is still solvent after the transfer, then there's little to worry about. Insurance would further set your mind at rest.
If your conveyancer doesn't know what a declaration of solvency is I'd be worried enough to get someone else involved. Many mortgage lenders will insist upon it.
if he gets made bankrupt the trustee in bankruptcy can undo any transactions at an undervalue in the last 3 years, or 5 years if they can show an intention to frustrate creditors. It's a defence though to show that he wasn't made bankrupt at the time.

Thank you both, I will ask the conveyancer about the insurance.

But just one final question, what does TIB means.

(Thank you for your help, I really appreciate it)

Thank you. :)