Here for you: Please note that Brookman’s services remain uninterrupted during this time. Read more

Blog

Divorce Solicitor, Henry Brookman addresses the impact of recession-induced bankruptcy during divorce. Printed in the Financial Times.

After the wife of a successful businessman learns her husband intends to file for bankruptcy during their divorce, she asks the FT what her options are. Henry Brookman provides the advice.

Will you be entitled to a financial settlement?

Firstly, even a rapidly concluded financial settlement may not protect you if your husband subsequently files for bankruptcy. If your husband is declared bankrupt, a trustee will take over your his financial affairs. If your house is in joint names, then you will be entitled to half of its value once sold. If your home is only in your husband’s name, you may be able to argue to the trustee that your contributions to the house were sufficient to show that half had been held by your husband in trust for you. Failing this, the best you can hope for is twelve months’ occupation of the house before the trustee can sell it to pay your husband’s creditors.

Concerned that the bankruptcy is not genuine?

If you have concerns that the bankruptcy is being engineered to conceal funds your husband has elsewhere, you will face the often expensive and difficult task of proving this is the case. The Trustee will make enquiries to establish what assets your husband has, but payment of the business’ creditors will take priority. If your husband can pay his creditors in full, this would suggest there is a surplus of funds for your claim.

Does the timing of the settlement and bankruptcy affect the outcome?

The more time between the settlement and the bankruptcy, the better. If the bankruptcy takes place within six months of your settlement it will be clawed back. If the bankruptcy takes place over six months after the settlement date (and assuming you are divorced by this time) the trustee will then focus on whether you took assets for an artificially low price – known as a ‘transaction at under value’.

For more information, read the recent Brookman article regarding bankruptcy during divorce, or contact Brookman Solicitors directly for more advice.

Financial Times Wealth Questions: what happens if a spouse files for bankruptcy during divorce?

Date: June 12th, 2010 - Written by: Brookman Solicitors

Divorce Solicitor, Henry Brookman addresses the impact of recession-induced bankruptcy during divorce. Printed in the Financial Times. After the wife of a successful businessman learns her husband intends to file for bankruptcy during their divorce, she asks the FT what her options are. Henry Brookman provides the advice. Will you be entitled to a financial… Read the full article

Bankruptcy during divorce: what you can learn from Scot and Michelle Young

Date: June 2nd, 2010 - Written by: Brookman Solicitors

Henry Brookman discusses what happens when a spouse is declared bankrupt during or after a divorce. Published in Moneyhighstreet.com. One of Britain’s biggest divorce cases between property tycoon Scot Young and his wife Michelle has gained significant coverage in recent weeks. This is due to Mr Young declaring himself bankrupt during divorce proceedings, leaving his… Read the full article

International Child Abduction: What Rights Do Parents Have?

Date: March 25th, 2010 - Written by: Brookman Solicitors

Henry Brookman discusses the issues surrounding the rising number of international child abduction cases. Published in Solicitors Journal. The issue of child abduction was again under the spotlight when six-year-old Nadia Fawzi was recently returned to her mother after being abducted by her father and taken to Libya in 2007. There has been a steady… Read the full article


Google Reviews

Brookman Solicitors

70 Reviews

Yesima Hamid 04/09/2020

I want to highly commend Brookman Solicitors firm. I had the privilege of getting very thorough and sensible advice from their solicitor Jennifer Douglas. I don't have enough praise for her. She made me feel at ease and 'got me' and understood very well all the issues and her advice was on point. I felt she had my interest at heart in all the different matters. She was very accommodating and willing. She truly made a difference. She has great insight and I truly recommend her and the firm. They are very professional with the human touch.

Roohie Mahajan 16/08/2020

I am so happy that I hired their services. I am from India and it was my international divorce case. My ex husband is in the UK. I had a free telephone conversation with Henry Brookman and I was so satisfied that without even meeting him I was so confident. My case was handled in the best way possible.

He is probably the one of the best lawyers in the world. He is extremely competent, professional, intelligent and empathetic. The only lawyer who genuinely work to help you rather than making money. He is a very experienced lawyer and he saved me so much money. He is so calm and kind towards his approach. He is the most genuine person I have come across.

I just came to London once to attend my hearing. My husband and his solicitors made it so complicated. My ex husband has to spend double the amount of legal fees than me. This is the difference between hiring a good experienced lawyer. Their fees might be expensive but good lawyer will make you save money at the end. Finally at the end I won the case and my husband has to pay all my legal fees without me travelling to the UK. I will always be eternally grateful to Henry Brookman and Brookman Solicitors. I am falling short of words to praise them.

I highly recommend their services. Keep up the good work.

Jen Ade 23/07/2020

I had an initial consultation and Henry was well prepared. He gave great advice and followed through quite quickly. He was very helpful.

Chris Mullins 15/07/2020

Henry and team were most professional, considerate and efficient when handling the financial proceedings owing to my overseas divorce. I recommend their services highly. International circumstance was at first to me most daunting and confusing, given each country had its' own unique approach. Thankfully Henry was knowledgeable of the law on either side of the seas and able therefore to provide best guidance and reasoning to me which enabled favourable settlement!

Wim Jansen 24/06/2020

I contacted Brookman to ask for information regarding the validity of an international divorce court ruling. They were very quick in providing me with the right information. When I had another question a few months later around children matters I phoned them again and after taking some background information and contact details they booked me in for a free telephone consultation with 1 of their partners Talitha Brookman. She spent half an hour of her time explaining to me what I could expect and provided legal advice. All was free of charge. I would not hesitate to contact them again should any matter become more formal and have to go through court. The service has been quick, professional and very friendly.