Separation and mortgages

Of course this is considered. s79 Family Law Act considers contributions made to assets - both financila and non-financial

 

Good to know as I was informed otherwise. Judge makes the final call though, yes?

 

yes - after taking into account various things

 

Not necessarily. If one person is financing the deals by working full time while the other is working on them it can be deemed that you have an equal stake in them. Mine kept telling me to sell the properties and be a housewife but now he thinks the portfolio is great.
I gave up my job while he surged forward with his career so I lose out a bit. I'm not really employable in my profession now, having sole parenting duties. But that said, the freedom of being out of a bad relationship makes up for the money I've lost in the settlement. Sometimes you s just got to cut your losses so you're not stuck in the mud for years while they try to fight you in the family court.

 

Non-financial contributions are taken into account this includes staying at home with kids allowing the other spouse to work.

 

So much to get my head around! I've always been pretty proactive (read pushy) with the property thing while she reluctantly let me do my thing. I'm glad it's looking like I can offload some property now to keep my prized position... the family farm which is also our ppor.

What we've agreed to in principle is something we're both happy with at this point, as long as things don't get messy from here on in. Fingers crossed.

 

So does your agreement in principle work in terms of what the banks will allow?

 

I'm hoping so! We're selling a few that have very low LVRs and there are a couple of others I think I can hold on to. Then there are few with small amounts equity which I'd keep if I can for future growth but if I need to sell those I wont lose any sleep over it. Time will tell.

 

Hope it all works out ok, not fun with all the paperwork etc.

is that your lawn in the avatar ? must have good water if yes.

 

[QUOTE=" is that your lawn in the avatar ? must have good water if yes.[/QUOTE]

Yep, that's our puppy on our lawn. We never water the grass, just good rainfall.
We're very lucky to live where we do!

 

There is a real watch out here as the party who doesn't get the PPOR can end up with a lot of equity tied up in the IPs when you may well really want it in your future PPOR.

Worth doing the math on actually selling the property share between the parties. Crystallise CGT and pay the stamp duty. There are a few trip hazards with this that you will need advice on from your accountant.

 

Hi all, Ive been off line for a while after starting this thread. The advice above has been a great help in knowing what to prepare for, but I'm at the stage now that I have a few more questions. Again, all advice is greatly appreciated.

Our separation continues to be quite amicable and we know both agree on what we expect to happen in terms of the division of assets. We have both spoken loosely with our broker (the same guy) who thinks we should be okay to service our new loans when the time comes.

Typically, I imagine both parties get a solicitor and the duke it out in the courtrooms while we pay the bill for the solicitors to drink and laugh together about our woes at the end of the day. (ok a little sarcastic but you get the picture.) If we agree on what we want, and want to avoid going through the painful process of solcitors what do we do? Can we go one solicitor together with a print out of what we want, have them sign it and submit it? Or do can we go to some sort of mediation together and formalise the process? We're both just a little conscious of having things inflamed by having solicitors drag it through the courts and lining their own pockets.

Basically, given that we both agree on what we want, we're after the lowest cost, lowest stress option so it can be rubber stamped and we can move on.

Thanks in advance.

 

You do what are known as 'consent orders'. I think @RPI 's firm does these for a few thousand $.

Then you use the court approved forms to avoid stamp duty on the transfers - which your conveyancing solicitor will help with.

 

@Allgood there are business that specialise in amicable divorces that dont charge like wounded bulls

I have a good contact who can tidy the whole thing up for you at minimal cost.

PM for details if interested.

 

Thanks @Terry_w
@Colin Rice, I will PM you. Ta.

 

The ex and I came to an agreement and put it in writing. I then gave it to my lawyer who drafted the consent orders - all the while telling me that I'm entitled to much more than the agreement and am I sure I don't want to take it further.
He's drafted the orders but said that the ex still needs to have their own lawyer to explain the orders.

 

Ok, thanks @beachgurl

 

Correct Adam Prior is the solicitor in my office that does these - $2,910 inc GST and Court Fees.

Sorts stamp duty but also finalises the settlement so the ex can't come back for another bite later on.

 

I think with family law property settlements it is taken on the assets that you hold at the time of the court proceedings. So a couple living separately for 10 years and then deciding to make the property settlement will have it based on the assets held now rather than 10 years ago - but I am not a family lawyer so this may not be true.

 

Yes this is true.