My ex husband has been very careless with money since we separated & is near bankruptcy I believe. As part of our consent order he has to pay the premiums of an endowment policy to be split 50/50 when it matures. What would happen if he became bankrupt?
Hi I confess I've not come across this scenario before. If your ex husband had been required to pay maintenance to you or your children, or both, bankruptcy would not affect the arrangement. I.E. your ex would be able to have the monthly payment kept as a reasonable monthly expenditure and the Official Receiver could not force him to cease this payment.
As the payment of the endowment is similar in that it forms part of the divorce settlement it could be that he will need to continue to pay it until it matures. If this is the case then the OR may find a legal process whereby on maturity your ex's 50% share would be claimed by the OR and the balance 50% share will go to you.
Altenatively, if there is no legal process to allow the OR to do this he may well claim the value of the endowment now and arrange for it to be sold. On sale 50% of the sale proceeds should then be yours.
My ex husband has been very careless with money since we separated & is near bankruptcy I believe. As part of our consent order he has to pay the premiums of an endowment policy to be split 50/50 when it matures. What would happen if he became bankrupt?
Would I get to know about it seeing as it also is a life assurance policy. Or would I have the option to take over the policy by paying out his half now to the OR?
if ex husband became bankrupt?
Posted - 14 September 2008 : 06:28:37
