Divorcee's battle to keep cash

A woman is battling to keep cash from the sale of the house she was awarded in a divorce settlement in a test case which could rock Britain's bankruptcy laws.

Wendy Haines, aged 43, was ordered to hand back half of the cash to help pay off her ex-husband's debts when he was declared bankrupt.

She owned a garage business with her husband David Haines on the Hoo Farm Industrial Estate in Kidderminster.

She was awarded their large detached five-bedroom farmhouse near Stourport-on-Severn, as a divorce settlement but her husband then declared himself bankrupt. Under the law, his trustees in bankruptcy have sought to gain half the funds of the house to help pay creditors.

Mrs Haines has been involved in a lengthy battle to retain the money from their former home which has now been sold and the proceeds frozen. District Judge Mackenzie had awarded the jointly-owned property to Mrs Haines.

Mr Haines' trustees contested the order in a bid to claim half the property for creditors but the decision was upheld by District Judge Cooke. Now Mrs Haines is appealing against this judgment in a hearing set to take place in the Court of Appeal in London today.

Mrs Haines said she "had no option" but to go against the trustees.