ACT Family Net Gain Put on Property Settlement Pool?

[Lin]

Morning,

Would like to know if the former family home sold with a net loss could be used to against the net gain of the present family home so that a net gain / loss portion put into property pool for our property settlement.

I bought two properties 2 years before marriage and we lived in the first one for a few years ( I paid all deposit and loan repayment with a net loss when I sold it); then moved to the second one which I paid all loan in 3 years and became free mortgage on the first month he started to work).

The house is under my name and attracts a net gain (since marriage of 17 years) which my former partner want to get a portion. I am 51 years old, 7 years older than him and now has no income as I need to take care my child at home and gave up my career for more than 10 years. Now he is earning 10 x more than my income.

Anyone want to comment about % split of 70:30 (section 79 ) for major financial contrition and 10-15 % (section 75) adjustment for future factor like income, age and career sacrifice.

Thanks

 

[Hayder Shkara]

Hi Lin

I'm a little bit unsure as to what your question is, but I will try and shed some light on the matter. Please keep in mind - this is very general opinion and each matter takes into account a whole range of factors. As no two relationships are the same, each financial settlement is different.

With marriages that are quite long, the courts view of it is that the initial financial contributions that were mad by both parties (in your case, the house), become regarded as an equal contribution by both parties. This means a 50/50 split. There may be an adjustment in your favour made for health needs, looking after children and earning capacity. This will have to be assessed on a case by case basis.

Hope that helps a little

 

[Lin]

Thanks Hayder.

What the problem is that my ex expects me to buy back the portion of gain (that he is entitled to) in my second house but do not want to share the loss of our first home (it's sold with a net loss that I have paid off).

I have a problem to identity what portion I should put into the asset pool. Some legal advice saying the portion before marriage should be excluded from the pool and then balance the gain and liability during the marriage.

Your comment is appreciated.

 

[Hayder Shkara]

All debts and liabilities should be put into the asset pool. If the first property was sold as a lost, this is also put into the asset pool.

If you bought and sold the property prior to the relationship - then you cannot include that in the asset pool.