VIC Property settlement question

[tigerman2705]

Hi - just noting at the outset that I have a solicitor, but I have a lot of respect for some of the opinions here so just wanted to put something out there. Will try to keep it brief.

Wife and I separated Jan 2020. We have three girls - 16, 14 and 11. 16 yo lives with me full time, 14 yo and 11 yo are 50/50 with me and their mum.

We have just sold the family home and will have around $1.1 million to split. We also have $475k in shares in a family trust. My super is around $530k, hers is around $100k. We each have a car - mine is around $20k, hers is $10k

Post separation I bought $9k worth of shares that are now worth $75k. I also have $70k in the bank that has been accumulated post separation after a termination payout.

She is a qualified paramedic and emergency services call taker, who took a 5-6 year break from working due to kids. She currently works full time and earns around $68k and runs an online business that brings in another $15-20k, I earn around $150k.

I received a personal injury payout of $88k 5 years ago for PTSD in the wake of the black Saturday bushfires. Most of this money went towards completion of a new home in a knockdown/rebuild situation.

I have managed the shares - she has never shown an interest in them.

I’ll also note that she brought no assets into the relationship back in 2000, while I had around $100k, but I guess the passage of time makes that irrelevant.

Our property was 64 acres. I did all the mowing, chainsawing, maintenance etc. it’s not like a normal suburban house block.

She is demanding that we each take $100k at settlement of the house sale pending final settlement of our financial matters, but I don’t want to do that, as I fear she will keep dragging things out. She has already been tardy in handing over her financial information etc etc. I want everything settled at once instead of drip feeding money out from the pool here and there.

We have heard from her solicitor and they want us to put the first move forward in terms of what we think I am entitled to. I will be discussing with my solicitor this week. I’m just wondering what the best tactics are to ensure I get the biggest slice of the pie that I can. I want to get as close to 50-50 as I can - if not more. I am not trying to cheat her out of anything, but I also don’t want her to get a cent more than she is entitled to. What are other people’s experiences?

 

[sammy01]

Refuse to release a cent.... You don't have too and it will piss her off. Good. Also, by refusing you're not giving her a fighting fund with which to pay solicitors. GOOD. She wants the $$ then she needs to play nice - get her paperwork in order and maybe even agree to settle.

Ok, so you're case is quite the juggling act... You have more care of the kids. Win to you... PTSD payout - win to you (u'm purely financial - mate, we nearly lost out place 2 summer's ago so I know your pain). Assets are divided based on time of settlement, not time of separation, so the fact you've done well in shares kinda suxs because all of that $$ is in the pool. Not a good time to win lotto or get an inheritance.

BUT you have a higher earning capacity. So she has a greater need. But termination payment? are you working now? do you have the capacity to get back into work? if so what sort of income from work?

And you're right - the initial $100 000 from back in 2000 isn't relevant.

How old are you? how old is she?
So for the moment I'm gonna assume similar ages (within 7yrs???)

So without the answers to the questions - I'm gonna give you my 2cent's worth. Offer her 55/45. Not gonna like me but you get the 45%. Look, she is dragging her feet. Let's assume you take my advice and she accepts the 55%. Sweet. Start moving on next week - get the paperwork signed HAPPY DAYS. Or fight for 50/50. That fight could take 12 months, longer if she drags it out... That could cost you both $????? in legal fees. and that $??? is a huge problem. Might wind up costing $20 000. Could blow out to $100 000+
Solicitors love winning. But the thing they love more is when a client says "I'd rather give my money to my solicitor than to my ex" cha ching.

And then there is the stress. This stuff is stressful. Stress kills. Get it sorted, move on, stress less, live longer...

 

[tigerman2705]

Hi Sammy - we are both 47. I’m working and earn around 150k a year. It’s a contract situation, not permanent full time. Expires in June. I’ve been assured I’ll get an extension but she doesn’t know that

 

[sammy01]

yeah that earning capacity thing is gonna screw you over.... That and the additional super, oh and your gender... I'd be offering her 55/45 to her.

 

[tigerman2705]

Cheers Sammy - I’m assuming super just gets split down the middle. It will be interesting to see what the solicitor says.

 

[sammy01]

yeah look super can get funky. So I got my asset split a bit closer to 50/50 by agreeing to keep all my super and pay her out by selling shares. The logic was she got the cash now where i have to wait until i'm 67 to get my super AND I'm risking the market but she gets the benefit of the cash in the here and now. Made a small benefit in my favour, but only small. But in my case it was worth it. She had fcuk all super and I didn't want my hard earned going into her fund where it would eventually fade away in fees because she wasn't contributing to her super....

 

[Atticus]

My super is around $530k, hers is around $100k

Super is not automatically included in a property settlement. Probably talk to your lawyer about IF he recommends a splitting or flagging agreement, & if so, what advantages that may afford you in negotiating the rest of the asset pool

Post separation I bought $9k worth of shares that are now worth $75k. I also have $70k in the bank that has been accumulated post separation after a termination payout.

So ALL assets, money, shares etc must be declared, (so the court knows each parties financial position) but any money you have earned & saved post separation as a result of your own labor, need not automatically be included in the asst pool for division.... It will however be considered a financial resource that you have available to you that the other party does not, & that *can* make a difference after adjustments.

I received a personal injury payout of $88k 5 years ago for PTSD in the wake of the black Saturday bushfires. Most of this money went towards completion of a new home in a knockdown/rebuild situation.

Bit of a tricky one, but because it was received during the relationship & put back into an appreciable joint asset, I don't think you could argue too strongly that it be wholly or partially quarantined fro the pool.

Doesn't matter who managed share portfolios
Assets bought into the relationship will have no bearing after 20 years & three kids

Our property was 64 acres. I did all the mowing, chainsawing, maintenance etc. it’s not like a normal suburban house block.

So, 'homemaker' contributions are not about who did how much around the house or property, but more about what sacrifices have been made and the opportunities forgone which have an economic impact, ie, leaving work to raise a family is in most cases considered equal to the financial support of the primary breadwinner... If you can demonstrate that you HAD to give up the opportunity of paid work to maintain the property, you *may* be able to add weight too an argument for an adjustment

She is demanding that we each take $100k at settlement of the house sale pending final settlement of our financial matters, but I don’t want to do that,

Then don't agree to it. Perfectly reasonable to want the matter settled prior to any disbursements .... Unless she can demonstrate that without the money she won't be able survive without govt pension or assistance. ... If that's the case then you ought to consider it or you may find an application for spousal maintenance pending a final division.

 

[tigerman2705]

Thanks Atticus for for that comprehensive response, I really appreciate it. Cheers

 

[tigerman2705]

My solicitor has done all the numbers and come back to me - she has all the finer points that weren’t in my post - reckons 55-45 my way is realistic. We will give it a crack.

 

[tigerman2705]

Update to this - received a letter from her side claiming that my refusal to give in to her demand for $100k at settlement is a form of abuse. Please spare me.