PROPERTY ADJUSTMENT ORDERS AND INSOLVENCY
What happens where a jointly owned former matrimonial home is ordered to be transferred by an insolvent husband to his wife? On the facts in Hill and another v Haines [2007] EWHC 1012 (Ch), [2007] All ER (D) 72 (May) Judge Pelling—sitting as a High Court judge—held that where H is hopelessly insolvent then the transfer will be at an undervalue. It can be set aside so that H’s share will vest in the trustees. This is because, in this case, by taking a transfer of H’s share in the property, W gave no consideration at all. The fact that she did so following a contested ancillary relief application and on the basis that all her ancillary relief claims were dismissed makes no difference; or it made no difference here, because her claims were of no real value in the light of H’s insolvency.
In short, the ancillary relief court order did not cure the lack of any true value in the transaction. It was therefore open to the court to set aside the ancillary relief order as a transaction
