Transcript Document

The Melancholy
Consequences of
Debt and
Improvidence
www.tanfieldchambers.co.uk
Bankruptcy /
matrimonial finance
overview
CONTENTS:
Annulment
- Should order have been made
- Discretion
Financial orders BEFORE Bankruptcy (Part I)
Financial orders BEFORE Bankruptcy (Part II)
Summary (Part III)
Financial orders AFTER Bankruptcy
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Annulment
Section 282(1): “the court may annul a bankruptcy
order if at any time it appears to the court
a) that on any grounds existing at the time the
order was made, the order ought not to have
been made”
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•
Should order have been made?
•
Discretion
Should order have
been made
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•
Commercial insolvency not balance sheet
insolvency
•
Re Coney: “it would not normally be right to
annul a bankruptcy order unless at least it is
shown that as at the date of the order the debtor
was in fact able to pay his debts, or had some
tangible and immediate prospect of being so
able…”
•
Examples: Paulin v Paulin – granted
Whig v Whig – refused
F v F - granted
Discretion
•
Tactical/abuse of process e.g. Paulin
•
Delay
•
Effect on A and B
•
Provision for Trustee’s costs
Mekarska v Ruiz
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Financial Orders
Before Bankruptcy
(I)
•
Effect of discharge
•
S.281(5): “Discharge does not, except to such extent and on such
conditions as the court may direct, release the bankrupt from any bankruptcy
debt which….
(b) arises under any order made in family proceedings or under a maintenance
calculation made under the CSA 1991”
•
Hayes v Hayes (orders survive)
“desirability of ensuring that family liabilities are not avoided by a
bankruptcy.”
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Financial Orders
Before Bankruptcy
(II)
•
Review of transaction
•
Property adjustment orders
• Hill v Haines
“…unfortunate in the extreme if a court approved … or court determined property
adjustment order would be liable, in practice, to be undone for up to 5 years because
the husband goes bankrupt…That could even encourage such bankruptcy on the part
”
of a disaffected husband.
•
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Ball v Jones
Summary (III)
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•
Transfer of Property
•
Pension
•
Maintenance
•
Lump sum (McRoberts)
Financial Orders
After Bankruptcy
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•
Financial Orders After Bankruptcy
•
Property orders cannot be made save for residue of proceeds
following discharge
•
Lump sums can only be ordered in respect of residue
•
Pension rights available
•
Maintenance may be ordered but during currency of BO not
binding on bankruptcy court. Income payment order may
override pp
Contact
Kerstin Boyd
Barrister
Tanfield Chambers, 2-5 Warwick Court, London, WC1R 5DJ
Tel: +44 (0) 20 7421 5300
Fax: +44 (0) 20 7421 5333
E:[email protected]
www.tanfieldchambers.co.uk
Matrimonial
Finance Update
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Matrimonial
Finance
Update
1
• Competing needs of creditor and Wife:
charging order to creditor?
 Kremen v Agrest
[2013] EWCA Civ 41
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Matrimonial
Finance
Update
2
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• Dealing with companies
 Petrodell v Prest
[2013] UKSC 34
Matrimonial
Finance
Update
3
• Beware the consequences of ill-judged MPS
applications and freezing injunctions
 S v M (MPS)
[2013] 1 FLR 1173 15.11.2012
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Matrimonial
Finance
Update
4
• Guidance on freezing and search orders in
financial remedy cases
 UL v BK (Freezing Orders: Safeguards:
Standard Examples)
[2013] EWHC 1735 (Fam)
(25.6.2013 – Mostyn J)
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Matrimonial
Finance
Update
5
• Admissibility of documents and statements
obtained under compulsion
 Mohan v Mohan
[2013] EWCA Civ 586
29.5.2013
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Matrimonial
Finance
Update
6
• Effect of “Series of lump sums” or “lump sum
by instalments”
 Hamilton v Hamilton
[2013] EWCA Civ 13
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Matrimonial
Finance
Update
7
• Appropriate route to take when non-disclosure
is alleged - EWCA or 1st instance court?
 Karim v Musa [2012] EWCA Civ 1332
(24/10/2012)
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Matrimonial
Finance
Update
8
• Effect of Litigant-in-person on costs / orthodox
approach to assessing costs
 Ezair v Ezair
[2012] EWCA Civ 893
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Matrimonial
Finance
Update
9
• Permission to appeal “real prospect of
success” - guidance, and ‘equality’ in
‘needs’ case
 CR v SR [2013] EWHC 1155 (Fam)
22.1.13
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Matrimonial
Finance
Update
10
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• Guidance for dealing with trust assets
 G v G (Financial Remedies: Trust Assets:
Short Marriage)
[2012] 2 FLR 48
Matrimonial
Finance
Update
11
• Strike Out / Delay in bringing application after
many years
 Vince v Wyatt
[2013] EWCA Civ 495
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Matrimonial
Finance
Update
12
• Agreement reached: materiality of nondisclosure
 SvS
[2013] EWHC 991 (Fam)
Sir Hugh Bennett
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Matrimonial
Finance
Update
13
• Agreement reached in 1991: no order – effect
of delay
 TvT
[2013] EWHC Fam B3
Parker J
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Matrimonial
Finance
Update
14
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• Make sure you answer the questionnaire
 Young v Young [2013] EWHC 34 (Fam)
(16/01/2013)
Non-matrimonial property
• White v White [2001] 1 AC 596 @ 610 Lord Nicholls:
– ‘In the ordinary course, this factor [inherited property] can be
expected to carry little weight, if any, in a case where the claimant's
financial needs cannot be met without recourse to this property':
• Miller / McFarlane: Lords Nicholls (par 23 – 25)/ Baroness
Hale (147 - 153) both comment
• Charman v Charman (No. 4) [2007] EWCA Civ 503 –Potter
P:
– “the principle applies to all the parties' property but, to the extent
that their property is non-matrimonial, there is likely to be better
reason for departure from equality”
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Non-matrimonial Property (2)
• Then cases of Robson v Robson [2010] EWCA Civ 1171
[2011] 1 FLR 751 (useful for “dynastic wealth”)
• Jones v Jones [2011] EWCA Civ 41 (“springboard” &
“passive growth” arguments)
• P v P (Inherited Property) [2004] EWHC 1364 (Fam)
(Munby J)
– the reluctance to realise landed property must be kept within
limits. After all, there is, sentiment apart, little economic difference
between a spouse's inherited wealth tied up in the long-established
family company and a spouse's inherited wealth tied up in the longheld family estates
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Matrimonial
Finance
Update
15
• Pre-marital wealth, successful business:
application of needs and sharing principles to
capital and income claims of W
 B v B (Assessment of Assets: PreMarital Property)
[2012] EWHC 265 (Fam),
[2012] 2 FLR 22 16.1.2012
David Salter sitting as a
Deputy High Court Judge
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Matrimonial
Finance
Update
16
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• Approach to Inherited Wealth in a “needs” case
 Y v Y [2012] EWHC 2063 (Fam)
12.10.12
Baron J
Matrimonial
Finance
Update
17
• Pre-marital wealth / Add-backs /
• s 34 (2) MCA 1973
 F v F (Financial Remedies: Pre-marital
wealth)
[2012] EWHC 438 (Fam)
[2012] 2 FLR 1212 5.3.2013
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Matrimonial
Finance
Update
18
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• Pre-acquired wealth / ring-fencing of pension
 GS v L (Financial Remedies: Preacquired assets: needs) [2013] 1 FLR
300 [2011] EWHC 1759 (Fam)
Matrimonial
Finance
Update
19
• Treatment of family inheritance and intergenerational transfer
 Davies v Davies
[2012] EWCA Civ 1641
13/12/2012
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Matrimonial
Finance
Update
20
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• Post-separation asset accrual
 RvR
[2012] EWHC 2390,
[2013] 1 FLR 106,
Macur J
13.8.2012
Matrimonial
Finance
Update
21
• What is the proper approach to a “limited
means short-ish marriage” case?
 RvR
[2013] 1 FLR 120
Coleridge J
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Matrimonial
Finance
Update
22
• Remortgaging after final order – extension of
term of Sp PPs permitted to pay mortgage?
 Yates v Yates
[2012] EWCA Civ 532,
28.3.2012
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Matrimonial
Finance
Update
23
• In a 70:30 split needs case, is it wrong not to
order a Mesher?
 Tattersall v Tattersall
[2013] EWCA Civ 774
10.7.2013
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Matrimonial
Finance
Update
24
• ‘Sharing’ Principle and Periodical Payments
Orders:
 B v S (Financial Remedy: Marital
Property Regime)
[2012] EWHC 265 (Fam)
[2012] 2 FLR 50
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Matrimonial
Finance
Update
25
• Other useful stuff
 Best Practice Guidance for FDRs
 Interim costs / orders for sale
 The Family Court
 Docklands
 First Avenue House

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Contact
Gwyn Evans
Barrister
Tanfield Chambers, 2-5 Warwick Court, London, WC1R 5DJ
Tel: +44 (0) 20 7421 5300
Fax: +44 (0) 20 7421 5333
E: [email protected]
Kerstin Boyd
Barrister
Tanfield Chambers, 2-5 Warwick Court, London, WC1R 5DJ
Tel: +44 (0) 20 7421 5300
Fax: +44 (0) 20 7421 5333
E:[email protected]
www.tanfieldchambers.co.uk