Bataillon & Anr v Shone & Anr 2016 EWHC 1174 QB

8 June 2016

A claim by creditors under s.423 of the Insolvency Act 1986 to set aside the transfer of property between a separating husband and wife.  

Facts

  • The claimants were creditors of the first defendant, Mr Shone. Pursuant to s.423 of the Insolvency Act 1986, the claimants sought to set aside the transfer of various items of property from Mr Shone to Mrs Shone – the second defendant – which had taken place (the defendants contended) pursuant to an informal separation agreement.

Held

  • The creditors’ claims under s.423 of the Insolvency Act 1986 were made out.
  • The various transfers from Mr Shone to Mrs Shone had either been made with no consideration or at an undervalue. The transfers were intended to defeat the claims of the creditors.
  • Mrs Shone was ordered to pay to the creditors 50% of the net sale proceeds of three properties which had been transferred into her sole name. The figure reflected a finding that at all relevant times Mrs Shone had held a 50% beneficial interest in the properties herself.

 

  • Mrs Shone was ordered to pay a further lump sum of £434,500 in respect of the claimant’s other claims.

 

  • In the exercise of his discretion, HHJ Waksman QC (sitting as a Judge of the High Court) reduced this sum by £100,000 to make provision for the school fees of Mr and Mrs Shones’ daughter who was described as an innocent victim.