Family Law – The Competing Issues of Bankruptcy and Family Law

Family law property settlements or applications for spousal maintenance may be further complicated where one spouse is bankrupt or considering bankruptcy. In these circumstances, a conflict clearly arises between the competing interests of a trustee in bankruptcy and the separated non-bankrupt spouse in determining how property should be distributed between the parties. Currently, conflicts between the trustees of bankrupt estates and the separated spouse may be resolved by the Family Court who are empowered to make orders about property distribution even if such property is in the trustee in bankruptcy’s…