Contracts for future settlements.Contracts for future settlements.

### Contracts for future settlements. (2.) Any covenant or contract made in consideration of marriage either— (a) for the future payment to the settlor’s wife or husband or children, of any money, or (b) for the future settlement on or for the settlor’s wife or husband or children of any property, wherein the settlor had not at the date of the marriage any estate or interest, whether vested or contingent, in possession or remainder, and not being money or property of or in right of the settlor’s wife or husband, shall, on the settlor becoming bankrupt before the covenant or contract has been executed, be void as against the trustee in the bankruptcy, except so far as it enables the persons entitled under the covenant or contract to claim for dividend in the settlor’s bankruptcy under the covenant or contract, but any such claim to dividend shall be postponed until all claims of the other creditors for valuable consideration in money or money’s worth have been satisfied. (3.) Any payment of money (not being a payment of premiums on a policy of life assurance or endowment or for an annuity) or transfer of property made by the settlor in pursuance of any such covenant or contract as is mentioned in the last preceding sub-section, shall be void as against the trustee in the settlor’s bankruptcy, unless the persons to whom the payment or transfer was made can prove, either— (a) that the payment or transfer was made more than two years before the date of the commencement of the bankruptcy, or (b) that at the date of the payment or transfer the settlor was able to pay all his debts without the aid of the money so paid or the property so transferred, or (c) that the payment or transfer was made in pursuance of a covenant or contract to pay or transfer money or property expected to come to the settlor from or on the death of a particular person named in the covenant or contract, and was made within three months after the money or property came into the possession or under the control of the settlor; but, if the payment or transfer is so declared void, the persons to whom it was made shall be entitled to claim for dividend under the covenant or contract as if it had not been executed at the commencement of the bankruptcy. (4.) Nothing in this section shall affect or prejudice the title or interest of any person who has bonâ fide and for value purchased or acquired, from the persons entitled to the benefit of the settlement, covenant or contract, or from the trustee of the settlement the money or property the subject thereof, or any interest in such money or property. (5.) “Settlement” for the purposes of this section includes any conveyance or transfer of property. ###