Avoidance of voluntary settlements

(1) Any settlement of property, not being a settlement made before and in consideration of marriage, or made in favour of a purchaser or incumbrancer in good faith and for valuable consideration, or a settlement made on or for the wife or children of the settlor of property which has accrued to the settlor after marriage in right of his wife, shall, 47 (a) if the settlor becomes bankrupt within two years after the date of the settlement, be void against the trustee in bankruptcy; and (b) if the settlor becomes bankrupt at any subsequent time within ten years after the date of the settlement, be void against the trustee in bankruptcy, unless the parties claiming under the settlement can prove that, (i) the settlor was at the time of making the settlement able to pay all his debts without the aid of the property comprised in the settlement; and (ii) the interest of the settlor in such property had passed to the trustee of such settlement on the execution (2) Any covenant or contract made in consideration of marriage, for the future settlement on or for the settlor’s wife or children, of any money or property, wherein he had not at the date of his marriage any estate or interest, whether vested or contingent, in possession or remainder, and not being money or property of or in right for his wife, shall, on his becoming bankrupt before the property or money has been actually transferred or paid, pursuant to the contract or covenant be void against the trustee in bankruptcy. (3) “Settlement” shall for the purposes of this section, include any conveyance of transfer of property.