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Post separation income and assets accumulated

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DadOf2 View Drop Down
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Joined: 26/March/2015
Location: Australia
Posts: 8
  Quote DadOf2 Quote  Post ReplyReply Direct Link To This Post Topic: Post separation income and assets accumulated
    Posted: 27/February/2018 at 22:00
Hi there,

I'm nearly 3 years post separation from my wife and we have been working on a developing care arrangement of 2 kids (6 & 5). Property & assets have been informally discussed but we haven't nailed discussed it for nearly 1 1/2 years and time has just gotten on. Wife had been a stay at home mum & become a student post-separation with a small income (< $20k).

I purchased a house early last year using a mix of money divided up from the relationship & new savings. I couldn't sleep last night with the fear & realisation that both any accumulated savings & income post-separation, along with a stake in the purchased house, are within the asset pool.

My wife remains in the family home and intends to buy me out on that. We've juggled on division of assets and I'm agreeable to 60/40 no questions asked. But that was at an earlier point in time where the house, cash & super were from the relationship. 2-3 years on, I've worked incredibly hard to build a deposit up & purchase a home for me and the kids, and am now scared sh*tless she may stake a claim to the post-separation income, savings & house I've purchased.

One thing to clarify is that I'm clear & respect that any growth or decline in assets (super, cash in deposit accounts, family home) is within asset pool.

Can anyone comment further about their experiences with this?

Can anyone recommend a path forward from their own experiences or knowledge?

Thanks!

citizen-joe View Drop Down
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Joined: 09/October/2005
Location: Australia
Posts: 646
  Quote citizen-joe Quote  Post ReplyReply Direct Link To This Post Posted: 28/February/2018 at 02:26
Can I suggest that you resume talks regarding the property settlement with the aim of trying to arrive at a reasonable split. If you can find something to which you both agree, perhaps work on filing a joint settlement application.

It might cost you a little seeing you have accumulated some assets post separation, but not as much as if you both engage solicitors and fight tooth an nail for everything that you each believe is due to you.

emca01 View Drop Down
Legal Guru
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Joined: 20/July/2012
Location: Australia
Posts: 2245
  Quote emca01 Quote  Post ReplyReply Direct Link To This Post Posted: 28/February/2018 at 10:15
Get divorced - she has 12 months from the date of divorce to lodge with the family court. It could get messy and any informal agreement made is toilet paper..

So for example. hubby and wife split and agree to sell all assets and split the $$ 50/50.. One goes on a spending spree. The other saves saves saves.... The spender then makes a claim on the saver's assets. Because there is no formal - binding orders. The spender can make a claim against the other person....

Hopefully, the courts will look at the bank accounts, etc etc... and make a sensible decision... But if the hypothetical pair mentioned above sorted their stuff out with a binding agreement at the time they split the assets, there would not have been the problem.

But by getting divorced you will at least be creating a deadline for her and after that you will be able to rest your weary head.

jaazzz View Drop Down
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Joined: 19/September/2009
Location: Australia
Posts: 6426
  Quote jaazzz Quote  Post ReplyReply Direct Link To This Post Posted: 28/February/2018 at 16:49

There's nothing in legislation that I am aware of whereby post separation earnings (from your own labor) can be included in the pot for division... If however you have used moneys or assets to invest or acquire further assets that were the subject of an informal division agreement between the 2 of you then yes that can complicate things considerably.

Another complicating factor can be that money you have earned post separation although not included in the 'pot', can be considered as a financial resource that you have available to you that the other party does not... If the sum is considerable, a judge can reduce what you may have otherwise received in the interests of 'balance'   

   Whilst it's true that there is a 12 month time frame after the granting of divorce in which to file an application, be aware that leave can & most probably would be granted out of time if the applicant can demonstrate significant financial or non financial contributions to the acquisition, conservation or improvement of property, & that they or a child of the relationship will be disadvantaged if leave to file is not granted..... Child rearing & homemaker are accepted as non financial contributions of the kind that would carry weight.

With that in mind, I believe the best course of action may be as per earlier advice, resume talks with a view to either consent orders or a BFA.


Any opinion given should not be accepted as legal advice.

Please post your legal questions in a forum rather than sending a PM. Thanks

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