Plain language law

New Zealand law explained for everyone

Child Support Act 1991

Enforcement provisions - Miscellaneous provisions

201: Dispositions may be set aside

You could also call this:

“The court can undo property moves made to avoid paying child support”

You should know about a rule that helps protect people’s rights under the Child Support Act. If someone tries to move their property around to avoid paying child support, a court can step in and fix things.

Here’s how it works: If the court thinks someone has given away or sold their property to avoid paying what they owe, they can make orders to set things right. This applies even if the person did it through someone else or for someone else’s benefit.

The court can tell the person who got the property to give it back or pay money instead. This happens if they didn’t pay a fair price for it or if they knew it was being done to avoid paying child support.

Sometimes, the court might not be able to completely fix the situation. This can happen if the person who got the property didn’t know about the scheme and has already changed their life thinking the property was theirs to keep. In these cases, the court tries to be fair to everyone involved.

The court can also decide who should pay for the costs of sorting this out. They have the power to make any extra orders needed to make sure their main order is followed.

Remember, this rule is there to make sure that people can’t cheat the system by moving their property around. It helps make sure that child support payments are made as they should be.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM257066.

Topics:
Family and relationships > Children and parenting Money and consumer rights > Consumer protection Crime and justice > Courts and legal help
Previous

200: Dispositions may be restrained, or

"Court can stop people from getting rid of property to avoid paying child support"

Next

202: Procedure in High Court where defendant absent from New Zealand, or

"How the High Court deals with child support cases when the person who owes money is overseas"

Part 11 Enforcement provisions
Miscellaneous provisions

201Dispositions may be set aside

  1. Where any court is satisfied that any disposition of any property has been made, whether for value or not, by or on behalf of or by direction of or in the interests of a liable person or any other party to proceedings under this Act in order to defeat the claim or rights of the Commissioner or any other person under this Act or in respect of costs, the court may, on the application of the Commissioner, make an order under subsection (2).

  2. In any case to which subsection (1) applies, the court may, subject to the provisions of subsection (4),—

  3. order that any person to whom the disposition was made and who received the property otherwise than in good faith and for valuable consideration, or that person's personal representative, shall transfer the property or any part thereof to such person as the court directs; or
    1. order that any person to whom the disposition was made and who received the property otherwise than in good faith and for adequate consideration, or that person's personal representative, shall pay into court, or to the Commissioner, or to such other person as the court directs, a sum not exceeding the difference between the value of the consideration (if any) and the value of the property; or
      1. order that any person who has, otherwise than in good faith and for valuable consideration, received any interest in the property from the person to whom the disposition was so made, or that person's personal representative, or any person who received that interest from any such person otherwise than in good faith and for valuable consideration, shall transfer that interest to such person as the court directs, or shall pay into court, or to the Commissioner, or to such other person as the court directs, a sum not exceeding the value of the interest.

        1. For the purposes of giving effect to any order under subsection (2), the court may make such further order as it thinks fit.

        2. Relief (whether under this section, or in equity, or otherwise) in any case to which subsection (1) applies shall be denied wholly or in part, if the person from whom relief is sought received the property or interest in good faith, and has so altered his or her position in reliance on having an indefeasible interest in the property or interest that in the opinion of the court, having regard to all possible implications in respect of other persons, it is inequitable to grant relief, or to grant relief in full, as the case may be.

        3. The court may, on any application under this section, make such order as to costs as it thinks fit.

        Compare