NSW Can sole owner refinance the house without the spouse's consent?

[Chi]

Hi everyone.

Recently my friend asked me this question but I was unable to find the appropriate answers. I am really appreciated if someone can help me to answer this.

A family have been married for more than ten years and have two children. However, the husband is a sole owner of the property, therefore he refinanced the house for 240K without his wife's consent. His wife even didn't know about that. However, he did it just two weeks before they were separate. He moved out immediately with his mistress. In this situation, could the wife has any right to against him on the refinance?

Thank you so much for your help!

 

[Rod]

Yes. She should move quickly and have the money frozen before it is spent. See a lawyer asap.

 

[Clancy]

I dont think there is anything to panic about here. When the property is divided, that refinance will come off his share. (unless he tries to claim it was a joint expense, watch out for that!)

 

[Rod]

There is reason to panic, $240K reasons.

If that money disappears and is the majority of the property pool then it can be next to impossible getting it back. Would you risk $240K and hope you get it back after it has been spent?

If the money is only an insignificant portion of the total pool then I'd agree no need to panic.

For most people, $240K is a sizeable asset and needs to be protected.

While I might be prepared to wait for a property split, other people may suffer an irreversible loss by waiting and I'd hate to be a cause of that. Better safe than sorry when dealing with a sizeable chunk of someone else's money.

 

[Clancy]

There is reason to panic, $240K reasons.

If that money disappears and is the majority of the property pool then it can be next to impossible getting it back. Would you risk $240K and hope you get it back after it has been spent?

If the money is only an insignificant portion of the total pool then I'd agree no need to panic.

For most people, $240K is a sizeable asset and needs to be protected.

While I might be prepared to wait for a property split, other people may suffer an irreversible loss by waiting and I'd hate to be a cause of that. Better safe than sorry when dealing with a sizeable chunk of someone else's money.

Ok true, i was thinking in terms of 'Sydney' house prices which makes $240k look like a child's pocket change for sweets.

 

[Chi]

Thank Rod and Clancy for your help. I have told the wife to see the property lawyer asap. However, my concern is if the husband is the sole owner of the house and he actually bought it a few months before they married, then can the wife have the right on this property? I'm pretty sure that the amount 240K is a significant amount of the total assets.

 

[Chi]

Ok true, i was thinking in terms of 'Sydney' house prices which makes $240k look like a child's pocket change for sweets.

Not really, Clancy. Although the typical Sydney houses are over 1M, however, depends on the area, you still can get a good private house in 550-700K (I'm not talking about the city), just need to spend more times on researching and checking. Otherwise, a $550k-appartment is not a bad idea, could be in Parramatta. So a saving of $240k can be a great part for these plans.

 

[Rod]

then can the wife have the right on this property?

Yes, at least to some extent because of a long marriage/relationship.