Out of time?** - The specifics of the Jodee Rich amendments

Previous posts have looked at the interplay between the rights of spouses on a property settlement under the Family Law Act and the rights of creditors on the bankruptcy of a spouse.

The amendments to the Family Law Act and the Bankruptcy Act made in 2005 radically changed how the Family Court is able to treat property interests where one or both of the parties to the marriage became bankrupt.

In particular, the Family Law Act permits the court to make whatever orders it considers appropriate, including -

1. altering the interests of the bankruptcy trustee in the vested bankruptcy property of a party involved in a family law property settlement;
2. ordering a relevant bankruptcy trustee to transfer property for the benefit of either or both the parties to the marriage or a child of the marriage; and
3. taking into account the effect of any proposed order on the ability of a creditor of a party to recover the creditor’s debt.

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** For the trainspotters, the title of today's post is riffed from the Blur song ‘Out of time’.

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