“Bankrupt Owner of 'ROK-1' Seeks to Amicably Divide Property with Wife” — Comment by Tatiana Tereshchenko for Delovoy Peterburg
Alexander Starobinsky, the owner of the fish processing plant "ROK-1," who has been declared bankrupt, is seeking creditors' approval for a settlement agreement on the division of property with his spouse.
According to Tatiana Tereshchenko, head of the analytical department at Prime Advice Law Offices, courts view such settlement agreements with caution: there is always a risk of abuse, where the former spouse receives liquid assets while the debtor is left with assets of no real value.
Starobinsky’s desire to obtain creditors' approval for a settlement agreement on the division of marital property appears atypical but is strategically understandable,
— the expert notes.
— It reduces the risk of the transaction being challenged and demonstrates the debtor’s good faith.
Overall, a settlement agreement can expedite the bankruptcy process and reduce litigation costs, but only under certain conditions: the terms of the agreement must be transparent, all assets must be documented, and the debtor spouse must retain some assets.
However, there are also drawbacks. For example, even if creditors approve such a settlement, it does not guarantee its stability if the interests of third parties are violated, Tatiana Tereshchenko points out. Additionally, the court may refuse to approve the agreement or even overturn it later if its terms clearly harm the interests of the bankruptcy estate—meaning the debtor could have received more under normal litigation.