Divorce and bancruptcy - A Warning

Discussion in 'Men's divorce Issues' started by Mark Keenan, Jan 24, 2011.

  1. Mark Keenan

    Mark Keenan Administrator Staff Member

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    Thousands of divorcees in the UK risk seeing their assets plundered to meet their former spouses' debts after a landmark ruling that they are no longer protected from his or her creditors when they split, notes a report in The Times.

    A recently released High Court ruling has closed the loophole protection that spouses enjoy over their share of assets ordered on divorce. In future if a husband – or wife – goes bankrupt, their spouse will be exposed to creditors over assets won in a contested divorce. Bankruptcy trustees will be able to pursue the non-bankrupt spouse for up to five years. The ruling also applies retrospectively to divorce orders within the past five years.

    EDITOR:

    This will still only apply to orders that have been made to try and protect one spouse from the possible insolvency of the other, so if the order is made as normal without any hint of insolvency then the trustees would not be able to attack post order assets of the other.

    Further info: http://business.timesonline.co.uk/tol/business/law/article1769520.ece
     
  2. Miva Diva

    Miva Diva New Member

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    Can anyone help? I am at full disclosure within my current divorce proceedings. I live in the former matrimonial home and have two children.

    My ex has just recently made himself bankrupt by his father, My solicitor and I knew nothing of any debts that he had to his wealthy father who would appear to be masterminding this whole situation.

    It would appear that he had done this in order to stop me from having the house as I was in a position to take on the mortgage.

    Apparently the Official Receiver now owns half my home. What can I do about this?

    Equally me ex is now saying that he is unlikely to pay anything for the children as he can no longer afford it......
     
  3. Miva Diva

    Miva Diva New Member

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    WARNING!!!

    I have now been back to court with my barrister, my ex's barrister and the appointed trustee's barrister. What a day - on paper my ex has very cleverly made himself bankrupt - he has been taking vast amounts of cash out of his account, less than the automatic anotated £500 a time and supposedly got debts to his father and the tax man. His tax debts are estimates provided by his less than honest accountant father. Also, suddenly his usually vast contractors salary has dropped by nearly half. He did not provide time sheets as requested by 'our side' . Therefore for all I know he is only working one day a week at present.

    Consequences: Judge said (albeit sympathetically) 'What an unfortunate situation he had now put me in'. She further mentioned very sweetly a case where the wife overturned the bankruptcy - little use to me I cannot afford to fight anymore.

    I now have to liaise the the trustee's and pay off half the equity in the house to the trustees - who in turn no doubt pay my father in law, who no doubt will give my ex his money!

    As for me - I probably now cannot afford the extra hike in mortgage to do this, house prices are considerably higher than what they were two years ago when all this started. Furthermore he took our joint bank account vastly overdrawn and the bank are looking to me to settle it.

    He however, will now enjoy the equity in the property, go back to work eventually properly, earning vast amounts once more, myself and the children will be forced to sell our home, he will get his money and finally his wish of forcing us to move, vitriolic punishment for me leaving him. He hasn't seen his sons since May and thoroughly enjoys his new single cash wealthy life!

    As my barrister said ' I am afraid you have been stitched up!'

    Isn't the law wonderful - You have been warned.....
     
  4. Luce

    Luce New Member

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    I advise you to contact a civil advice bureau (or else a RECOMMENDED solicitor who you know well), because in a court of law at the end stage of the financial settlement procedure, a judge would not order you and any children to leave the house. And any fishy dealings of your husband regarding bankrupcy, or fake bankrupcy, would come out in court with any luck. You need to look hard at his financial statement and see if he is putting on a front. Ask a knowledgable friend or someone good with figures to help. Better still ask your accountant, if you have one. You can go right through the courts and if the marriage was a long one, the judge should do something to help you.
     
  5. Luce

    Luce New Member

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    Have you considered getting legal aid, which costs you nothing (if you are on a low income you can apply through a solicitor), that way you can go to appeal and request further documentation from your ex and his father. It will cost you nothing. Then you can ask the court to have the bankrupcy evaluated by a forensic accountant. When money changes hands it always leaves a trace - and if it has not left a trace, that can be the subject of a good deal of questioning. If you continue to pursue this, especially with legal aid (insist that you solicitor applies for it), then he will have to provide evidence to support what he claims. If he cannot do this and the judge sees that there is something going on, your solicitor can ask the judge to evaluate the accounts. It will drag on, but meanwhile, you are in the house and he cannot make you leave, nor can anyone else. Maybe worth it, rather than being bitter for years to come?
     
  6. oliviataylor

    oliviataylor New Member

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    Can anyone help?
    My husband went bankrupt 4 years ago and the trustee has now possession and an order to sell our property. I never bothered to put my name on the mortgage, but we built this home together and have brought two children up age 7 and 10. They need all the equity to clear the debt and i have been told that because i didn't have my name put on the mortgage i cannot or will have a fight to claim my half. A marital right was lodged though, years ago. HELP
     
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