Did you know?
A divorce doesn’t just happen – and if you don’t get a divorce after separation, people can still apply for a property settlement many many years after the relationship is over. This can get messy and expensive when you buy property after separation, or when you get into a new relationship and your ex-partner decides that they are no longer so charitably inclined towards you.
Once you get a divorce, the clock starts ticking on the ability to get a property settlement and gives you some peace of mind about moving forward with your life. |
Without a pre-nup or ‘binding financial agreement’, people in married and defacto relationships gradually acquire interests in each other’s property, even if it was brought into the relationship.
We recently had a case where a client’s family developed a very successful business trading property, but their accountants placed everything into a client’s name instead of in a business, and did not even consider any type of pre-nuptial agreement. The other party did not have anything to do with the business, but they did have several children together. As a result, the client is looking at tens of thousands of dollars in valuation costs and trying to piece together information on just what everything was worth at the beginning of the relationship over ten years ago. The potential cost to the client is many hundreds of thousands, if not millions, of dollars. A pre-nup can try to avoid this situation, and can at the very least ensure everyone knows what was brought into the relationship, which would have saved tens of thousands of dollars today. |
Did you know that if you fail to create or update your Will upon separation and you pass away, your spouse may inherit any property you left to them?
If you pass away before a property settlement takes place between you and your former partner, it will be your partner who ends up with your property (notwithstanding separation or if you have both repartnered). If the thought frightens you, it is best to make or update your Will. If you have entered into a Financial Agreement before or during marriage, it is also important to review your current Will to ensure it contemplates and is consistent with the provision made for your spouse under your Financial Agreement. Remember that by reviewing and updating your Will, it will greatly reduce the risk of a successful challenge to your intentions later on and safely knowing that the people you love will be looked after when the time comes. A small step goes a long way! |