Getting a LOC with your PPOR as security

There is actually one property that she will take over from me and my name will stay on that mortgage and title too.
I didn't want to mention that as it would have just complicated the issue trying to explain it here.
I suppose I'm lucky? Just trying to make the best of a not so good situation. Could be worse, right?

 

Did you get tax advice on all of this?

 

Thanks to everyone for taking an interest and responding. Unfortuantely they weren't the answers I was hoping for, but expected anyway.
Brad

 

I have an accountant friend and I was going to call him tonight. You seem to know a lot more about this sort of thing (property tax) than he does, though. That is why I follow your blogs! I still have to discuss with my lawyer and so will bring it up with him then. Thanks for your help.
Brad

 

You will each be still owners so are liable for your share of the tax. But what happens if 'her' property is sold and she takes all the proceeds and leaves you with a tax bill.

Could it also be that you are declaring a trust over the property so she holds her share and you hold another share as trustee for her - that has different tax consequences and timing issues, as well as stamp duty issues perhaps.

 

I guess the family lawyer in me says that you should be aiming for a 'clean break' financially. If you're using a family lawyer, I''d be surprised if they haven't discussed this with you.

While its great things are amicable now, there's all sorts of things that could happen in the future that could make it a nightmare to be financially joined still - including fighting over an unusual BFA that still seems to contemplate joint finances in the future.

 

I wish there was a better way... The plan is to change the details of the loans, or possibly sell as soon as it makes sense and there has been enough capital growth. I know it's not an ideal situation, but as the properties were bought recently, we would lose money on all the deals.