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T O P I C R E V I E W
Ryan.ma
Posted - 01 June 2010 : 07:43:45 I received 5k from my ex wife when I was forced to move out of our home, and a further 4.5K two years later after a protracted divorce as final settlement on my share of the property. Due to the fall in house values I received a lot less than I expected and this has now ultimately led to me considering filing for bankruptcy. If I declare this transfer of ownership on the forms is my ex wife liable to be chased by the OR for money now that house prices have improved?
4 L A T E S T R E P L I E S (Newest First)
RHB
Posted - 01 June 2010 : 18:35:39 If you were solvent at the time of transfer then the settlement can't be overturned either even if the money you received was less than the going rate.
Richard P
Posted - 01 June 2010 : 12:27:25 Hi Ryan
The OR could challenge the settlement but they would have to see considerable cash advantage to them to do so.
It could cost them 5 - 10 K to challenge your situation, if the advantage to the OR was that they could potentially earn your creditors 75 - 100K they may consider, but i think that the margins are too small (not to you but to them).
The OR would want to check that a fair price was agreed and the transaction was not carried out to give you ex, a significant advantage over other creditors. if it was a fair price at the time then it is likely they will strike a pen through it and NFA line of enquiry.
regards Richard
Bridgewood
Posted - 01 June 2010 : 09:53:30 Hi ryan.ma
The OR/trustee could challenge a divorce settlement, even if done under a Court order, but it doesn't happen too often
As long as she paid a fair amount for your equity at the time of the transfer it is unlikely it would be challenged - the OR/trustee can't come back just because house prices have improved just as your wife couldn't come back to you if house prices had fallen further. It's the value at the time of the transfer that counts.
Hope that helps
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