It's Now Even Harder For A Trustee To Get Relief From Ancillary Relief

The case of Sands v Singh has recently clarified but narrowed the circumstances in which a trustee in bankruptcy can challenge an order or financial settlement made in divorce and ancillary relief proceedings. Such a challenge is usually made on the basis that the transfer of the assets was for nil consideration or consideration that was less than the value of the assets transferred (contrary to section 339 of the Insolvency Act).

Hill v Haines has already evidenced the uneasy relationship between the family court and the Bankruptcy court and the judgment in...