James Harrison examines the impact of bankruptcy on marriage
“For better, for worse, for richer, for poorer…” While nobody enters a marriage expecting it all to go wrong, in these rocky times, the threat of bankruptcy is ever present. It is often only at the time of bankruptcy, by this stage too late, that spouses realise how exposed they are to a cold-hearted trustee in bankruptcy selling their home from under them. While it may feel like their life is collapsing like a house of cards, in terms of bricks and mortar, the non-bankrupt spouse’s position requires detailed analysis to ascertain what they own.
Understanding what the spouse owns and how that interest is valued is key whether you are structuring a couple’s affairs when bankruptcy is not an issue, or seeking to protect or assert a beneficial interest in the face of a trustee in bankruptcy investigating the bankrupt spouse’s interest. This article looks at the key legal principles in valuing the non-bankrupt spouse’s interests and the recent legal developments in this ever-evolving area of law. While we will focus on the law