Bankruptcy and family law

Bankruptcy and family law

Once a party to a marriage or de facto relationship becomes bankrupt, their assets (excluding some categories like household items, super, some tools or some vehicles) vest in the trustee.

The Family Court or the Federal Circuit Court can deal with matters involving a bankrupt party in relation to property settlement, maintenance, setting aside property orders and enforcement.

The court can determine the competing rights of creditors and the non-bankrupt party. Neither has defined priority.

The trustee can apply to become a party to proceedings.

Certain notice provisions apply.