Settlement victory for divorcee

A woman whose former husband declared himself bankrupt after he was ordered to pay her a large financial settlement has won a court case in which she fought to keep her money.

During divorce proceedings in December 2004, Wendy Haines was awarded the proceeds of the sale of the matrimonial home she shared with her former spouse David.

However, Mr Haines declared himself bankrupt a year later and his ex-wife was ordered to give up £120,000 of her settlement in order for him to pay of his debts, under laws which permit bankruptcy trustees to reclaim any property given away in the five years before the bankruptcy.

Nonetheless a high court judge has ruled in favour of Mrs Haines and said that she will not have to hand over any cash to her former husband.

Michelle Ashworth, solicitor with law firm DWF, commented: "The Court of Appeal felt the High Court judge had misunderstood the matrimonial case law. When a spouse agrees to a divorce settlement or an order is made after a contested hearing they give up the right to any future financial claims (capital).

"It would not be fair for them to lose their home at a later stage because their ex-spouse had been declared bankrupt. It would also be alien to the concept of a clean break if a husband's creditors could come and take the wife's property away."

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