The Court of Appeal has held that parties to an ancillary relief order do give consideration under s.339 of the Bankruptcy Act 1986 (unless the case is exceptional and there has been fraud or collusion). The consideration is the determination of the transferee's right to ancillary relief. The value of the consideration is quantified by reference to the value of the property transferred so it will be irrelevant that and order may have been generous to one party because of the welfare of children. A wife to whom the former matrimonial home is transferred does not therefore need to worry about the husband's subsequent bankruptcy.
Written by Rebecca Fitton-Brown, Barrister at New Walk Chambers, specialising in Family Law.
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