Property settlement with ex

Hi
I’ve got equity in a house and the ex and I are going to start a property settlement.

im looking for contacts to give advice about selling it and dividing it or whether I should seek a loan to buy her out.

Anyone know any investment specialists with separation experience that I could get in touch with?

 

The loan wont be deductible.

 

What if op rents property out?

 

see these

Tax Tip 17: Divorce and Deductibility of interest Tax Tip 17: Divorce and Deductibility of interest

Tax Tip 18: Strategy to Increase deductions on Divorce https://propertychat.com.au/community/threads/tax-tip-18-strategy-to-increase-deductions-on-divorce.2874/

 

"Its not deductible". The borrowing wasnt used to acquire the property. It was to pay the former spouse. The transfer of title is not directly associated with the borrowing - the transfer occurs under the marital split agreement not the borrowing. And a existing loan may lose 50% deductibility as well.

To make it deductible duty may apply (50%)

 

Not enough detail, is/was this a principal place of residence or an Investment Property?
Loan structure ?
If a PPOR, are either/both still living there ?
Any kid's ?

Basically if you can keep everything amicable and reach an agreement you both will benefit financially, sure you each need a seperate lawyer to review/advise to finalize the settlement legally, but if either of you end up with friends saying "you should go for more" or similar legal advice the majority of the money will go in legal fee's

Buying out the other is fraught with issues, it only takes one to think the value of the property isn't current market value and the offer isn't enough (or they get greedy)

 

Also if you’re talking about divorce I’m not sure how wise it is for you to talk about it with your actual name for a username.

 

Duty may well not be significant given it only applies at the rate applicable to half the value. Different states may differ.

 

...isn't what the OP after a family lawyer?

Or at least what he should be after?

 

Ive dealt with family law specialists (in the area I required) after approaching 3, ended up getting rid of the first choice 4 months in for the second, both acted like it was their first rodeo, we learnt more from Google and had to prompt them constantly, in the end ($70k later) we chose to self represent (saved about $50k)

The OP likely has or is seeking legal representation already.
I congratulate the OP for being pro active enough to "ask" and learn

 

Is your question should you sell and divide OR buy out your partner?

Regardless you first have to agree on the percentage split. Section 75 (2) of the family law act covers this. It’s not complicated.

If there is one partner with less income/disability/care of young kids/etc they will get about 10% more so 60/40.

if one partner contributed significantly more than the other to the asset pool with premarital assets they may get 2-8% more depending on a few factors like size of contribution and length of marriage.

if one partner contributed significantly more (like was a FT earner AND did most domestic and child care) then they’ll get around 5% more

the percentages can either be agreed to you b or h privately, in an arbitration or in court and if a judge decides they are all discretionary and will all come up with a different idea fo what’s fair.

very unusual to have 70/30 it’s almost always in the 60s and 40s

 

@Poppy Are you just making up random % splits out of thin air?

 

I love the reference to "we" about legal advice in a divorce
WE should never get legal advice about marital splits. Each should get independent advice but it can help to be on the same page. Unfortunately thats were lawyers must then do more than most clients ask. eg Super must be considerfed and more. The family court expects that

One thing you should never do is personally make any agreement regarding property thinking its final. Only the family court can make that count

 

2022 caselaw.

Out of interest I read all the 2022 family law cases and checked out what the judges decided regarding percentage splits. And their reasons.
Because that's just how I like to spend my spare time
It didn't take long, you should do it too!

"the percentages can either be agreed between you privately, in an arbitration or in court and if a judge decides they are all discretionary and will all come up with a different idea of what’s fair."

 

Sell it and start again - no entanglement and a clean break ... simple

 

Well that's good in terms of the primary source, but the actual splits would have been case specific and based on a many more factors than what you've suggested.

If you want to reliably be able to guess % splits and the weighing of factors, you'll have to do a lot more study I'm afraid.

 

All ? Yeah.

 

Thanks.

Family law....ALL law....is very case specific and contingent on 10, 20, 50 factors. I don't know what you're trying to say here? No amount of the study you recommend will inform, let alone predict, what percentage split is deemed acceptable by a magistrate. Let alone do it reliably as you suggest.

A family law expert with 30 years experience advised me on this -- and we both know it.

 

How many cases did you read?

 

Have a look.
Judgments | Federal Circuit and Family Court of Australia

There's only a few every month. I went back a year. Some months only have one case. It makes for sad reading, especially the child abuse cases.