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27 November 2008 / Michael Wilkinson
Issue: 7347 / Categories: Features , Divorce , Family
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Insolvent divorces

Divorce, bankcruptcy...and the credit crunch. A painful combination, says Michael Wilkinson

As the property market descends, once again, into negative equity, and banks and businesses slam on their proverbial brakes and put a stop to their (previously generous) credit and loan facilities, the credit crunch looks set to hit home —and its impact is likely to affect more than merely the family purse. Married couples beware. Those finding it tough presently making ends meet, may soon be stretched beyond their limits and not only from an economic point of view.

Tales of insolvency and a break-up of the family unit are likely to become increasingly more commonplace. The consequence for the family law practitioner is that there are likely to be more than just two hungry parties looking for a slice of the family cake.

Surviving the wreck of a partner’s bankruptcy can be hard enough in itself. Managing to salvage anything from it while also divorcing the bankrupt partner, is often impossible. The sad reality is that if the husband (and it usually

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