18 May

Family Law – If your partner declares bankrupt

In a recent decision of the full court of the Family Court, the Wife filed an Enforcement Application in respect of nearly $48,000.00 that was owing to her under the property order made in 2015.   The Husband declared himself bankrupt.    The Wife applied to the court to vary the previous order seeking a share of his superannuation in lieu of the amount previously owed to her.  She relied upon an email from the Husband stating that he had moved assets offshore.

The court found that the intention of the original orders was that the Wife should receive a certain percentage of the total pool, including superannuation and these orders were made ineffective because the Husband had removed the majority of the non-superannuation assets from Australia and entered into voluntary bankruptcy.

The court held that if there was no order made, the Wife would suffer a substantial injustice, thus in those circumstances the court felt that it was just and equitable and necessary to make a superannuation splitting order in favour of the Wife.

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