Going for Broke: What Family Lawyers Need to Know about Bankruptcy

Many family law property settlement proceedings now involve third parties and corporate entities. It is increasingly common for one or both spouse parties in property settlement proceedings to be directors of a corporate entity – whether it be a ‘mum and dad’ family business or a multi-million dollar empire. A breakdown in the relationship of the spouse parties can have a significant impact on the financial viability of the business (whether intentional or inadvertent), yet the law of insolvency remains a mystery for many family law practitioners. This session aims to demystify insolvency law for family lawyers and will explore the following:

• The law of insolvent trading - the duty of directors, position of ASIC, potential defences and consequences of insolvent trading
• The impact of insolvency on the asset pool:
  • balancing the interests of the non-bankrupt spouse and creditors
  • what orders can be made in respect of property?
  • treatment of loan accounts
• Practical steps family lawyers can take if acting for a spouse party director where the other spouse party director is the ‘driving force’ of the entity
•  When specialist advice or assistance is required - when urgent action is required and when an entity may require separate representation and/or advice
• Case studies and worked examples