Divorcees liable if Ex goes bankrupt

Divorcees could face having to pay up if their former spouse goes bankrupt following a landmark recent ruling.  The decision means that even if you got divorced up to five years ago and your ex-husband or wife becomes insolvent, their creditors could demand the money from you.

If you are getting divorced, or have been divorced in the past five years, and there is danger of your former spouse becoming bankrupt, you should get expert legal advice immediately.

The ruling came from a High Court judge in May 2007. The case involved a couple who had divorced in 2003. The husband was ordered to transfer the family home to his former wife as part of the contested divorce.

The husband petitioned to be declared bankrupt in March 2005 with total liabilities estimated at £132,000.  Bankruptcy trustees sought to have the divorce order set aside – a move which they finally won following the court ruling this year.

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