Seperation...Query

Ongoing issue but slowly divesting of assets and splitting 60/40, kids involved also so it's complex

I've been covering shortfall on property assets to the tune of around $2k or more per month the last 2 years as we sold off several assets as the rents don't cover all loans, rates, insurances, land tax, or when property vacant (i..e we renovated one prior to sale) etc

We still have a couple of properties to sell however ex now wants to retain one and be paid out a sum of money as well, that I wouldn't even get if I sold the remaining and gave her 100%

Off to a mediation chat tomorrow

I had a quick chat with a lawyer who suggested that I've been more than accommodating, covering shortfall on all properties, paying 1/2 school fees, paying 100% family health insurance and paying maintenance on top of that......the query to respected members of the forum is his suggestion to advise at mediation that I will no longer cover the shortfall, all loans are in both names if the rents don't cover the repayments so be it. I believe this is to show that when she starts getting letters from the bank that she will realize its a shared cost, rather than yours truly covering everything but splitting proceeds of any sales 60/40

We both had a property each at the start of this journey, we bought and sold many along the way, the plan was to hold until retirement and then sell one every now and again in retirement, that plan is up in smoke now though as we sort division of assets, recent sales also attracted CGT

Good idea or bad idea, I'm sure the banks wont be happy, my bank account will however appreciate the retention of funds

 

The bad idea is farming for random opinions online when you have access to a lawyer advising you on your specific situation.

I have no idea whether its a good idea or bad idea because there's no where near enough info provided. And nearly none of the stuff you raise is remotely relevant to the decision.

And I'm one of the rare members here qualified as a family lawyer.

 

@thatbum When is legal seperation realized from ?

Being that ongoing expenses from "seperation" until actual "divorce" could be added back to the original cost base to be reimbursed (thus being shared, even though you incurred the initial cost)....

You may get your former partner off side by stating you will no longer cover the shortfall, couldn't this be covered by a redraw/line of credit/reverse mortgage until remaining property sold ?

If your former partner changes her mind on retaining any asset then they need to make it appealing to you to agree to change what was originally agreed to (due to furthering the process and costs)

Not advice at all, but the best settlements are the one's closest to being amicable, as this helps with every ongoing exchange between the parents and benefits the kids as they are more important

 

Do you actually have a.formal agreement and why do you keep mentioning 60/40?

 

I won’t touch on the divorce stuff but you do realise that you could ruin your own credit file/history by not paying?

it seems sensible to come to an agreement where the ongoing shortfalls are back paid at settlement of each property. However we are not privy to your actual agreement so there maybe nuances that I’m missing.

 

Yes its highly likely that the costs being covered would be credited in someway in the final division. It's not always added back in that way, but depending on what else is going on, there's going to be some recognition of it and its not just thrown away.

 

Not sure if this post is still running? I'm in a similar situation, but I'm worried that my lawyer is deliberately dragging out the process to add fees. I've said a couple times that I would like to consent in a couple ways and she talks me out of it saying she thinks I can get more of the property pool, but all I seem to get is more invoices from her every week for emails between me and his lawyer. I'm thinking of changing to self represented as my new partner did it himself and settled the matter by consent with a fraction of the cost. He just used a lawyer to draft the final orders and minutes of consent. Also, has anyone used these guys for process serving in Brisbane? I got told they're good, but I'm not sure who to trust in this process? Avid Investigations & Collections | Process Serving - Debt Recovery

 

Then stop letting yourself be talked out of it? And actually give your instructions?

I've never heard of a family lawyer dragging things out for more fees. I'm sure they probably actually think you could get more money - why is that so unlikely?

 

It is easy to get "talked out of", something. You employ a professional to advise you, and you initially think they are the experts.

Perhaps she can get more money from the property pool - but at what cost?

There is always a cost vs benefit analysis to be considered.

It doesn't take long for legal fees to add up.

Be very clear and firm in your instructions if you want to consent.

Thankfully I have no experience with family lawyers, but I'm absolutely certain other lawyers can and do drag things out for more fees.

 

Yes I would imagine it does happen with lawyers, and other professionals too. perhaps seek a second qualified opinion.