All your resources at your fingertips.Learn More
(Chancery Division, Registrar Jones, 18 April 2012)
In 1995 H gifted all his interest in the matrimonial home, registered in his sole name, to W, at a time when H was starting a business. A bankruptcy order was made against H in 2002. R, the trustee in bankruptcy, applied for an order under s 423 of the Insolvency Act 1986, asserting that the gift had been made in order to keep the property out of reach of future creditors. Registrar Jones dismissed the application. Applying Stack v Dowden  UKHL 17,  BPIR 913 principles, there was a common intention that the beneficial interest in the property would be shared equally between H and W. The true purpose of the gift was an attempt by H to reach a resolution of their matrimonial difficulties and to prevent W divorcing him. The purpose was not to put assets out of reach of creditors, and the evidence showed that there was no need to do so at that time. Finally, following Papanicola v Fagan  EWHC 3348 (Ch),  BPIR 320 the transfer was not a transaction at an undervalue.
"BPIR is an excellent series, of interest to both corporate and personal insolvency lawyers,...