VIC Property Settlement - Does Wife's Ex Have a Claim on Property?

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28 February 2018
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Hello,

Situation:

Wife inherited money from her grandmother who expressly wanted to provide for her. She purchased a 3 bedroom home in 1995 with this money and a mortgage. She lived in the house for a couple of years, then rented it out till September 2003 when she and her de facto moved into the house because she was pregnant.

Her daughter was born and she continued with her casual work, earning enough to cover mortgage repayments and other household expenses. Her partner was a sandwich hand but actually the son of a well to do professional family. They married in 2005. Her father-in-law told her that a Binding Financial Agreement would not be necessary. She had a son in 2007.

All mortgage payments came from her bank account. Her husband contributed little, worked away most nights as a carer, did no maintenance.

In 2013, they separated under the same roof and in 2015 the divorce was granted. Property settlement has dragged on for nearly three years. How much, if any, claim does he have to her home?

If she paid out the mortgage before final settlement, does it remove or reduce any claim he may have on the property? It would be solely in her name on title without the bank caveat but with a caveat from the ex- and another from her lawyer.

If she took the other party to court for neglect, how would it affect this settlement?

If All the payments on mortgage came only from her bank account, does the ex-husband have any entitlement to the property?

It is the sole asset. No assets were accumulated during the marriage but he accumulated credit card debt. His parents subsided him with regular payments of $1,000 here and there, but he spent none of that on his family.

Any help welcome here. Thanks!
 

Rod

Lawyer
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27 May 2014
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He will likely have some claim on the property, but it is not likely to be much.

I don't understand your 'neglect' question. Neglect of what?

Credit card debt can go either way. Depends on when the money was spent (pre or post separation) and what it was spent on (eg marital expenses or for instance alcohol for himself).
 
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AllForHer

Well-Known Member
23 July 2014
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Dad will have a claim to the shared asset pool regardless of who paid the mortgage. Just because the mortgage didn't come from his bank account doesn't mean he didn't contribute in other ways, financial or non-financial.

The Court asks four questions:

1. What's the value of the shared asset pool?
2. What were the financial and non-financial contributions of each party?
3. What are the future needs of each party?
4. Is the settlement just and equitable?

As you'll see, payment of the mortgage is immaterial, as is a case for neglect (whatever that may mean).

Your friend should get legal advice and follow it.
 

Couchsurfing

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21 January 2018
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It's a long relationship, so starting point is actually 50/50. Who paid what and did what probably not going to matter much, for short relationship yes, but not so much for long. What and how much you brought into the relationship will have more weight and see the % adjustment for your favor.
 
28 February 2018
3
0
1
He will likely have some claim on the property, but it is not likely to be much.

I don't understand your 'neglect' question. Neglect of what?

Credit card debt can go either way. Depends on when the money was spent (pre or post separation) and what it was spent on (eg marital expenses or for instance alcohol for himself).
He will likely have some claim on the property, but it is not likely to be much.

I don't understand your 'neglect' question. Neglect of what?

Credit card debt can go either way. Depends on when the money was spent (pre or post separation) and what it was spent on (eg marital expenses or for instance alcohol for himself).

Thank you for your reply, Rod. This fits with what she was originally told i.e. That he would get 10% to 20% of her property. But as the case has gone on for 3 years over 3 conciliation meetings and a 2 day trial that didn't happen last Dec. (parenting orders were agreed in meeting and confirmed before the judge instead) the demands from the ex- have risen to 45% of property value before expenses i.e. He want $400k of $1million property.
Neglect is separate. It involves him not taking her to hospital when seriously ill. He refused to leave work and called his aunt to attend his wife who was lying ill on the bathroom floor and that is just one example. Hard to prove now.
Thank you for your response it gives hope that getting a judge to decide is the right action even though legal fees are now $70k.