Legal Blog

BIA – Conveyance Under Value

Jovkovic v. DaSilva 2023 Ont CA

Debtor transferred his half interest in the matrimonial home to wife about one year before debtor assigned into bankruptcy. The property was value at $580,000. There was a mortgage (but its amount was unstated in the reasons for decision); however, we know that the equity was substantial. The trial judge set aside the transfer under s. 96(1) of the Bankruptcy and Insolvency Act. The transfer was undervalued whether one looked at half of the value of the property or just half of the equity. Wife had put on an increased mortgage a year after the transfer and claimed that she used the excess funds to pay debtor’s debts. The trial judge noted that consideration was determined at the time of the transfer, not one year later. The judge set aside the transfer and the Court of Appeal dismissed wife’s appeal.

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.