NSW Property Law - How to Divide Property Bought 20 Years Ago?

[Sam1980]

Suppose X had subsidised access to a property in Australia as an Australian citizen but no money to buy it. Y gives X the full amount, say $5000 and X buys the property in his name. At the time, to non-Australian citizens, the property was valued at $20 k. The mutual understanding is the property would be divided 50/50 but there is nothing official in writing. There is discussion over the years to sort out paperwork but nothing actually comes out of it. There are many witnesses to this arrangement.

20 years later, the property is worth $2 million, X has passed on and the property is now in the spouse's name, who is aware of the mutual understanding. Y decides to get his share back.

How would the division go about under property law? And does Y have any protection?

 

[Rob Legat - SBPL]

Is this a real question, or a "homework" question? I ask because of the phrasing.

Also, what is the nature of the property?

 

[Sam1980]

Hi Rob,

Thanks for your reply. It's not a homework question! This is actually a dilemma in the family but the setting isn't Australia. I have little knowledge of property laws and I'm trying to work out if this is a lost cause because quite frankly, there isn't any paperwork stating how much money was paid. There are many witnesses to this scenario and 20 years later, children have gotten involved who don't even know the full details but are protected by whose name the property is in.

I believe it's a private property... meant for residential living.

I understand the laws may be different but I'd like to know what stands in Australia.

 

[Rob Legat - SBPL]

It's very hard to answer in a way that will give you any certainty. Each state has their own property laws, and these will probably vary greatly from the situation overseas. It's probably more of a personal debt issue if he just wants his money back, which the estate of x is liable for - but not necessarily x's spouse.

If y wants a part of the property or the value, that's a whole lot more complicated.