Bankruptcy and family law proceedings
Dividing property after partners separate is generally stressful, with each party concerned about his or her financial future. The bankruptcy of one party adds a further dimension of complexity to a family law property settlement. Even partners whose relationship is intact should seek urgent legal advice if one of them is facing bankruptcy or insolvency issues. This article provides an overview of bankruptcy laws, how property is usually divided after a relationship breaks down, and how the processes interact when one of the parties to a property settlement is bankrupt. Bankruptcy and family law are complex areas and the information in this article is general only. Parties should obtain legal advice relevant to their individual circumstances.