New High Court Ruling

allofadither

From the TimesOnline today…

Thousands of divorcees 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.

A High Court ruling released yesterday 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 nonbankrupt spouse for up to five years. The ruling also applies retrospectively to divorce orders within the past five years. :eek:

Mike_St_Helens

Im not sure If I think its that bad really, Why should the OH get away with 1/2 the assets when they may well have been bought with credit thats included in the bankruptcy ?

fermi

Here: http://business.timesonline.co.uk/tol/business/law/article1769520.ece

Remmer

It doesn't apply to everyone. It was meant to close a loophole for the super rich avoiding IPA's etc and no doubt it will be challenged in a higher court