NSW Property Settlement and Caveat - Will I Lose My Property?

[blueriver]

Hi,

I have separated with my husband and we are now in the process of property settlement. Last week my husband received a letter of Caveat from a Land and Property authority. One of his previous colleagues is claiming all the properties under my husband's name. He claims he did not know why this has happened (but I doubt he has signed any legal document with that person for financial purposes).

I have contacted my lawyer but hasn't heard back from him yet. I'd like to know, in the worst scenario, will I lose my part of the property? My lawyer told me if we go to the court I should be able to have 65-70% of the property. In the worst scenario, will I lose all of the properties or at least half of them?

Thank you.

 

[Sophea]

Hi blueriver, generally the only person who can lodge a caveat is a mortgagee, someone with an equitable interest in the property or a person who has a court order concerning the land. The outcome really depends on what the interest is that this person alleges they have in the property and why, and the nature of the agreement with your husband that led to him believing he has an interest in the property.

The purpose of a caveat is to prevent the registration of a further dealing with the land that affects the caveated interest, unless the caveator consents or the caveat lapses, is cancelled, rejected, removed or is withdrawn by the caveator. Therefore he may just be requiring payment of a sum of money before he removes the caveat and it may not affect your interests in the land at all.

I suppose worst case would be that your husband conferred him some sort of security interest in the home to secure a debt or something, however I''m not sure whether that would be valid if you own the home as joint tenants and he was the only one who gave the security up.

I would hope though, a family court - having a lot of flexibility in the way that they divide property would determine that that the security impinged his interest in the land and not yours - if the loan or debt was incurred for his own benefit not for supporting the family.

It's really difficult to say.