The applicant sought a declaration that a bankrupt's notional gift of 50% equity in a matrimonial home to his spouse was a transfer at undervalue and void under s. 96(1)(b)(i) of the Bankruptcy and Insolvency Act.
The court found that even if the transfer was at undervalue, it would exercise its equitable discretion not to declare it void.
The court considered factors such as the spouses' good faith, the lack of intention to defeat creditors, the spouse's non-monetary contributions to the family, and her need for the funds to support herself and her children.