Navigating a separation is difficult. Whilst every relationship is different, there are a series of questions that clients often ask in their first appointment with a family lawyer. Today, we answer some frequently asked property questions.
What do we do with our joint accounts?
If you have joint accounts, you may have a claim for an equal share of the monies held in that account. How much you are entitled to (and whether you are entitled to any) will ultimately depend on the likely division of your property pool, based on factors including the length of the relationship, your contributions and your respective future needs.
If you are worried about your former spouse ‘emptying’ the accounts, you can contact your bank and ask them to place a dual authorisation on the account (i.e. a ‘2 to sign’ feature) so you can review and authorise any transactions.
It can be prudent to avoid distributing funds from a joint account until you have reached an agreement, however this will not work for every matter as sometimes a party needs to access joint funds to support themselves or the children.
Can I still sell the house before we have negotiated a property settlement?
Sometimes people are concerned about achieving the best possible sale price, particularly in circumstances where there is a decline in the property market. If your property is in joint names, you should usually not sell your property without the agreement (or knowledge) of your former spouse. You might also need to obtain your former spouse’s agreement to sell the property even if the property is in your sole name.
If you both agree to selling a property, you can ask the conveyancers to hold the net proceeds of sale in their trust account. Trust account rules provide that conveyancers will then only release funds on your joint written instructions (similar to a ‘2 to sign’ feature).
What if I don’t know what we own?
We often see people who are not sure about what their property pool includes. This may be where a couple has not shared finances, or where one party has managed the finances throughout the relationship. If your matter is not in Court, you can utilise tools such as the national property ownership search or ASIC searches to understand an individual’s business or property interests in Australia.
Can I just get divorced without a property settlement?
You are not required to go through a formal property settlement before you apply for a divorce. It is important to know that limitation periods will commence upon your divorce, meaning you have 12 months from the date of your divorce to apply for a property settlement with the Court.
There are limited circumstances in which you can apply to the Court after this time, however it is a more costly exercise and there is no guarantee that the Court will allow your application (particularly if you do not have a good reason for the delay).
If you are not married but in a de facto relationship, you have 24 months from the date of separation to apply to the Court for a property settlement.
If you have separated and are looking to negotiate a property settlement, or if you have particular questions about what you should and shouldn’t be doing when it comes to your joint assets, you should seek specialist advice about your particular circumstances. Call us to make an appointment on (02) 6225 7040 or by email on info@rmfamilylaw.com.au or get started now online with one of our experienced lawyers to obtain advice.
Author: Anika Buckley