In ancillary relief proceedings in a divorce, the husband had been ordered to transfer his interest in property to his wife. Before it was put into effect, he became insolvent. The wife and receiver competed for the interest to have been transferred.
Held: Upon the order taking effect (upon the decree absolute), the wife acquired an equitable interest in the property, and the trustee in bankruptcy took subject to that interest. The ratio in Maclurcan was directly applicable and binding, though the correctness of that decision was doubted. It is the order of the court exercising the matrimonial jurisdiction which effects the transfer of the beneficial interest not the subsequent disposition made by or on behalf of the individual who later becomes bankrupt.
Lord Justice Aldous, Lord Justice Laws and Lord Justice Jonathan Parker
Times 09-Sep-2002, Gazette 10-Oct-2002,  EWCA Civ 1174,  Ch 135,  Fam Law 809,  3 WLR 1760,  3 FCR 97,  BPIR 1126,  2 FLR 930
Matrimonial Causes Act 1973 24(1)(a), Insolvency Act 1986 283(5)
England and Wales
Doubted – Maclurcan v Maclurcan CA 1897
A wife sought a divorce petition for her husband’s adultery. On her application for maintenance, a sum of andpound;90 per annum was to be secured for her life on interests of the husband under two wills.
Held: The court confirmed the report . .
Cited – Haines v Hill and Another CA 5-Dec-2007
On the divorce, the husband was ordered to transfer his share in the house to the wife. On his bankruptcy shortly after, the order was confirmed. After the wife sold the property at a profit, the trustee in bankruptcy applied to set the transfer . .
These lists may be incomplete.
Updated: 04 March 2021; Ref: scu.174820