The following Property guidance note provides comprehensive and up to date legal information covering:
A transaction at an undervalue is a transaction which is made by a debtor:
by way of gift or otherwise for no consideration
in consideration of marriage (which need not be the marriage of the debtor)
where the value of the consideration received by the debtor, in money or money’s worth, is significantly less than the value of the consideration provided by him
Transaction includes any gift, agreement, arrangement or understanding, however informally agreed or recorded. A transaction may involve a single dealing, or it may be gleaned from a series of connected dealings.
Consideration refers to that which one party agrees to provide under the transaction; it is interpreted widely, the court having regard to the realities of the situation and assessing the true benefit and detriment of the transaction. The creation of valuable rights in favour of a third party which preserve the debtor’s de facto position (for example, by granting a protected agricultural tenancy to a family member, albeit at a full market rent) to the detriment of a creditor require very close examination to determine whether adequate consideration has been provided.
The requirement that the value received by the debtor must be significantly less than the value given by him does not require the court to be able to ascribe precise values to
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