Australasian family law cases concerning a party's initial
contributions,or separate property, brought into the relationship appear far
from clear when settlement is litigated in court.
The value of each party's initial contributions or
"separate property" brought in to the relationship can be diluted by
the length of the relationship or the "intangible" or non financial
contributions of the other party (for example household duties, parenting,
renovation/improvements).
In Australia as in New Zealand which was recently
illustrated by a bitter family property dispute decided in New Zealand's
highest court.It was considered a landmark judgment that may have opened the
way for wives to take a share of their husbands' property - even though the
husband owned it before the marriage.
At stake were two properties - the second one was inherited
by the husband in 1995.Since the marriage, the court said, the wife's actions
allowed the husband to undertake work solely for the benefit of his separate
property and that she had prevented the debt from reaching an unmanageable
level.Her duties of managing the household, in addition to her earnings of over
$300,000 from outside employment,had all contributed to the household.
The wife argued that, had it not been for her actions the
farm would have been sold to partly satisfy debt, and neither party would have
seen the spectacular increase in the value of the property and that she, as a
homemaker,helped her husband focus on developing and working the farm and later
a vineyard.The increase considered was $747,800,of which the wife's share was
determined to be 40 per cent, or $299,120. She received a further $283,000 in relation
to the second property.
This case highlights the importance of reaching a written
agreement at the beginning of relationships whereby the parties specify who
owns what before the relationship starts.It is wise to seek legal advice in
coming to decisions which affect your assets.
Whatever happens, partners in a relationship who bring
substantial assets into it and wish, in the event the relationship breaks down,
that they hold on to their separate property, would be wise to obtain a written
("prenuptial" or "postnuptial) agreement.
You can make a financial agreement before, during or after a
marriage or de facto relationship. These agreements can cover:
- Your financial settlement (including superannuation
entitlements) after the breakdown of a marriage or a de facto relationship
- financial support (maintenance) of one spouse by the other
after the breakdown of a marriage or a de facto relationship,
- any incidental issues.
For a financial agreement to be legally binding each party
is required to seek their own legal and financial advice before consent and
signature.
Remember the moving party needs to ensure that the other
party to the agreement is provided with adequate opportunity to obtain
independent legal advice otherwise the agreement can be set aside by a court of
competent jurisdiction.
In all such cases where you are contemplating entering
into a binding financial agreement call AustraliaFamilyLawyer for an
appointment on (03) 94816464 for proper professional advice and assistance.
If you are interested to know something more about
AustraliaFamilyLawyer [http://www.australiafamilylawyer.com.au/family-disputes.aspx]
and Family Lawyers then please visit our website
http://www.australiafamilylawyer.com.au
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