My future ex is going to file for bankruptcy. There is little or no equity left in family home where i reside with the children. Joint names. Injunction freezing only income which comes from music royalties in husbands name. This is a capital asset generating an income. Divorce in process for 50/50 split of thi only asset left in 23yr marriage. If husband files for bankruptcy what happens to royalties over which I have a claim. His debts are personal.Do they get seized and sold to cover debts which are not mine? Substantial income returned from these royalties which if managed correctly word not mean bankruptcy. I think he thinks it is way to resolve his personal debts to start again but what are implications for me and the children . Before divorce final hearing takes place there is no formal split of assets and they are in his name at this time. Are royalties 100% a capital asset is prob the Q.
Normally, if the bankruptcy happens first then the assets stay in the proportions and ownership that they were previously and the divorce cant change that, the question is if you have any interest in the royalties without being awarded them in a divorce, (ie did you have any hand in creating them)
My future ex is going to file for bankruptcy.
Posted - 22 July 2011 : 20:14:23
