Exploring The Interplay Between Family Court And Bankruptcy

The Family Court and Bankruptcy in Australia are two separate legal systems, but they can intersect in cases where family law matters and bankruptcy matters overlap.

In situations where a party to a family law dispute is bankrupt or is considering filing for bankruptcy, the Family Court can make orders that take into account the bankruptcy proceedings. For example, if a party to a property settlement is bankrupt, the court can make orders that take into account the party’s bankruptcy trustee’s interests in any property or assets that are subject to the property settlement.

Conversely, if a party to a bankruptcy matter is also involved in a family law dispute, the bankruptcy proceedings can affect the family law proceedings. For example, if a bankrupt party has a family law property settlement that requires them to pay a lump sum or ongoing payments to their former spouse, their bankruptcy trustee may have the power to sell the bankrupt’s assets to satisfy the debt owed to their former spouse.

It’s important to note that the Family Court and bankruptcy proceedings are governed by different legislation and have different procedures. Parties involved in family law disputes that also intersect with bankruptcy matters should seek legal advice from qualified family law and bankruptcy lawyers to understand their rights and obligations under both legal systems.