NSW Separating from Husband - Selling the House?

[Pinky]

Hi I am hoping for some advice! I am separating from my husband and have property rights queries please. We expect to sell the house (in his name only) for a substantial profit and we have two investment properties, which we have in joint names.

I vowed I would not consider court action and thought it fair to request a set sum from the sale of the house which is less than a quarter of what we expect to sell for. We have a two-year-old son and he will not need to pay child support due to my wages.

My friends believe I am short changing myself and should engage a lawyer to get a fair and equitable sum for my contribution to the marriage (married five years, together eight). At this stage I have requested $200k but the house is expected to sell for $1.2 and the investment properties have increased in value from $460k to at least $550k. The loan for the house was $720k which I contributed toward, I also paid 95 percent of bills for the house and two units.

Any help would be gratefully received! I was hoping to take the high road but given hubby believes I deserve nothing I am now not so sure. There were no external reasons behind the separation - just two people growing apart.

 

[Sophea]

Hi Pinky,

At the end of the day, the primary way that property division occurs after a marriage breakdown is via negotiation and private settlement. As long as you are negotiating either directly with your ex or through lawyers, what you settle for is up to you. Where you cannot reach an agreement with your ex as to how your property should be divided then you will need to apply to the court for orders determining who gets what based on what it deems is fair. Usually there is some compulsory pre-court mediation that you are required to go through as well prior to making an application for property settlement.

As to what a court would decide, it's impossible to say with any certainty what might be fair for any particular property settlement without a detailed understanding of the circumstances.

To give you an idea of how to court will make its decision, here is the four step process that is used when determining a property spit:
1. The total value of the joint asset pool is calculated by adding up the value of all assets. Debts and liabilities can also be shared.
2. The relative financial and non-financial contributions of each party is assessed (this would include inheritances, assets brought into the relationship by each party, earnings as well as maintaining the family home and child rearing)
3. The future needs of each party are considered (i.e. raising children, any specific health or other needs, earning capacity etc)
4. What type of settlement would be just and equitable is determined

Check out this blog post: Property Settlement After Separation - Agree Now, Don't Pay Later - Legal Blog - LawAnswers.com.au