(1) After the divorce or separation of persons or annulment of marriage is decreed, the spouses may partition their assets by instituting inventory proceeding which shall be miscellaneous ---66--- proceeding appended to the suit for divorce, separation of persons or annulment.
(2) Separation of assets in special cases – debts of spouse, insolvency and bankruptcy;
(a) Wherever any spouse seeks separation of common assets or where either spouse is declared as insolvent or bankrupt, the procedure specified in sub-section (1) shall be followed with the following modification:-
(i) the creditor of the indebted spouse or any creditor in case of insolvency or bankruptcy shall have the right to prosecute the inventory;
(ii) debts which are not proved by documentary evidence shall not be approved;
(iii) the other spouse has the right to choose the assets which shall constitute his or her moiety. If such right is exercised, notice thereof shall be given to the creditors who may object to the choice giving the grounds on which such objections are based.
(b) Where the court upholds the objection of the creditors, the court shall order that a second valuation of such assets as have not been properly valued be done by three valuers appointed by the aggrieved spouse, the creditor and the court.
(c) When the second valuation modifies the value of the assets chosen by the aggrieved spouse, he/she may within 10 days from the conclusion of the appraisal, withdraw from the choice exercised. Thereupon, the moieties shall be allotted by draw of lots.