Bankruptcy.

Where one party to a Family Law dispute is bankrupt, or becomes bankrupt during Family Law proceedings, the matter can become significantly more complex. In these circumstances, the Trustee in Bankruptcy effectively steps into the position of the bankrupt party and acts on behalf of that party’s creditors.

This means the Court may be required to consider competing interests between the non-bankrupt party and the creditors of the bankrupt party when determining how property should be divided. While the usual principles for Financial Settlements still apply, the Court must carefully assess contributions and determine what portion of the asset pool should be available to creditors.

At Sayer Jones, we regularly advise bankrupt parties, non-bankrupt parties and trustees in Family Law matters involving bankruptcy and insolvency. Our team provides clear strategic advice to ensure clients understand their rights, risks and options when bankruptcy intersects with Financial Settlements and Family Law proceedings more broadly.