Risk management ; ;Problems with property transfers ; ;It is always a relief to find that a divorce client has reached an amicable agreement with their former spouse about property matters.

All you have to do is put it into a consent order.

But beware apart from the obvious risks involved in drafting consent orders, remember that they only take effect between the parties.

They are not binding on any third party such as a lender unless they have been made a party to the proceedings, and this is where problems can arise.

;Firstly, make sure that the consent order, and any consequent transfer, is put into effect.

This may sound obvious, but if one party is being obstructive or has simply lost interest in the matter then they may stop giving their solicitor instructions.

There is little incentive for a party who is surrendering their interest in a property to conclude the formalities.

If this happens to you, ensure that you have written to your client clearly setting out the position; remind them that matters have not been concluded, and warn them of the potential problems they may face.

;A slump in property prices can cause all sorts of difficulties, especially if it was anticipated that a sale would be arranged very quickly.

For example, an order may be made permitting the wife to occupy until sale, on condition that she takes over payment of the mortgage.

Unfortunately no buyer can be found, and after a short while, the wife defaults on the mortgage.

The lender is unlikely to be influenced by any arrangement between the parties, and the consent order is not binding on them they will hold the husband jointly liable for any shortfall on the mortgage account.

Remember that however satisfactory the order, its only as good as the other partys financial situation.

If they cant be trusted or cant afford it, your client is vulnerable.

;Another problem is where both parties wish the property to be transferred to one of them, releasing the other from the charge.

Remember that you must obtain the consent of the lender to this.

;Even if the parties are in agreement, if the lender is not satisfied that one party can support the mortgage alone, then they may refuse consent, leaving both parties bound by the covenants in the mortgage.

Your client may have to consider remortgaging to another, more sympathetic, lender or finding a guarantor before the transfer can proceed.

;This column was prepared by the St.

Paul risk management team