The law is fluid and often only changes when situations arise forcing an otherwise unanticipated outcome. This is a case study on financing in Family Law compiled from a number of matters our firm has handled.
The situation: Perry and Simon have separated. They have negotiated a property settlement whereby Perry will receive 55% of the property pool and Simon will receive 45% of the property pool. Perry does not want to sell the house. She would like the house to be put into her name as part of the consent orders.
The problem: Simon agreed to consent orders which allowed Perry to keep the house. Simon has now discovered that Perry does not have enough money to buy Simon out of the property. Perry approached the bank to refinance the mortgage over the home so she could buy Simon out of the property. Unfortunately, she did not do this until after consent orders had been agreed upon.
The outcome: Simon waited 6 months to see if Perry could refinance the mortgage. After six months, Perry said she could not refinance the mortgage and the property would have to be sold. The property has since decreased in value.
The implication: In Family Law, waiting can either help or hinder you. Your property may appreciate in that time. However, it may also depreciate depending on the area you live in. For that reason, it is important that you know your options whilst negotiating ie. Can you refinance the mortgage? Will you be approved for another mortgage by yourself? What will your borrowing capacity be if you need to purchase a new property? All these issues need to be discussed during the negotiation process.
If you have a family law matter, concerns about how to get a family law property settlement or questions about family law and separation in NSW and want to find out more please do not hesitate to contact us on 9688 6023 or email us at info@franklegal.com.au.
This article is provided to the reader for general information. It is not legal advice. It was written by Andrea Spencer & Emily Graham and edited by James Frank.
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