04 December 2007
Depending on the outcome of a current Court of Appeal case,
ex-partners may find that assets awarded to them during a divorce
could be taken away if their former spouse goes bankrupt within
five years of the split.
Wendy Haines was awarded the proceeds of her matrimonial home in
a divorce settlement in 2003. When her ex-husband went bankrupt two
years later, the bankruptcy trustees sought to set aside the
divorce order and recover money from the sale of the home.
Their initial attempt failed, but in May this year a court ruled
that Ms Haines could be forced to hand over the assets awarded to
her. She appealed and is now waiting a decision, which should be
made before the New Year. If Ms Haines loses, it could open the way
for other divorcees to lose assets.
Divorcing women, in particular, are urged to consider future
pension provision.
