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When does a bankrupt have an interest in land solely held by the bankrupt’s spouse?

Silvia (Trustee) v Williams, in the matter of Williams (Bankrupt) [2018] FCA 189 (2 March 2018)

A bankrupt may have a beneficial interest in matrimonial or other property (or their proceeds of sale) which is registered solely in the name of their spouse (or former spouse) or partner. If so, the bankrupt’s interest will vest in the trustee upon the bankruptcy of the bankrupt and be a welcome addition to the assets available to the trustee for realisation for the benefit of creditors. 

In a recent case, the Federal Court of Australia considered whether a husband of a bankrupt wife held the family home in trust for his wife. 

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