There have been a few test cases on divorce and bankruptcy recently.
The latest status is that the wife is protected from bankruptcy of a former spouse that occurs after divorce.
Is his threat realisitic? i.e. It implies that you have some significant assets (probably in the house) but he also has significant debts (linked to his business??).
In some ways divorce offers you an opportunity to protect yourself from his debts.......
For example.... imagine if you (jointly) have 200k assets and he has 200k business debts.
If he goes bankrupt now.....you lose the house.
If you a get divorced and you are awarded lets say 60% of the house (cos u have the child)...then your 60% is protected and he will lose his 40% to the creditors.
So in summary....(and you would need to provide more details to confirm this)....
You best protective measure is to:
1) File for divorce and immediately also apply for ancillary relief. This basically stakes your claim to the house. If you do this first then you are at the front of the queue for the house, ahead of his creditors.
2) Push for a Clean Break. If he is willing to threaten bankruptcy to do you out of the house, and if he is running a business, he will be very capable of manipulating his accounts to ensure you do not receive much spousal maintenance. So go for as much upfront cash as you can get. With a clean break you could for example get 80% of the house. (My ex got 100% of the house...leaving me with just my pensions).
So actually his threat is going to have the opposite effect than he intended. If you really believe he would (or could be forced to) go bankrupt.....then you really need to file for divorce and ancillary relief immediately - before bankruptcy occurs and you do lose it all.
In all probability if it is just a threat to stop you from divorcing him, then he is on a hiding to nothing
If the marriage is over, file for divorce and get your 'ancillary relief' claim in ASAP
A lot of men for some stupid reason threaten their wives saying they will go bankrupt, in all probability it is an empty threat, and if he does file for bankruptcy HE will almost certainly lose everything
You will keep whatever the courts decide is fair, and with children involved you would be wise to push for at least 70% of the FMH valuation
There was a case recently that thankfully was overturned by the High Courts, it left the door open for idiot husbands to file for bankruptcy, knowing there ex's and their children would suffer
It has yet to be finalised as the bankrupt’s trustees are appealing to the House of Lords and we all know how long they take
There is a very very slim chance that the H of L will allow it to happen as it opens the doors to stupidity and revenge for spiteful ex's