Description
Where a husband transferred his interest in the matrimonial home to his wife in exchange for endowment policies worth less than the property, solicitors advised the wife to obtain a declaration by way of consent order as to her husband's solvency. The husband was unable to provide the declaration and filed for bankruptcy. The solicitors then advised the wife that she must decide whether to seek the court's approval of a consent order. If obtained it would strengthen her claim that she had paid full consideration for the property. However it would impair any financial claims arising from the marriage. The solicitors advised that on balance it was better not to proceed with the consent order. Years later the husband's trustee in bankruptcy applied to set aside the transaction on the basis that the wife had not paid full consideration and obtained an order for the difference between the increased value of the property and the value of the endowment policies. The wife's claim against the solicitors was statute barred. It had arisen prior to the time the trustee made its claim and had arisen long before either at the time of the transaction or the bankruptcy.
