4 Comments Family & de facto law, financial agreements, consent orders
They have owned the house since 2015 and have no equity? None at all? And he brought you and a new baby into a property where his ex was still on the title? He needs to take responsibility for getting this sorted ASAP.
Yes he will be required to declare his current financial position at the time property orders are applied for or made. If it went to court he could seek to have financial gains after the end of their relationship taken into account.
Also note that if they separated in March 2017 there is a 2y time frame to resolve property - after that they would need to seek leave of the court to have a property matter heard out of time.
Have they agreed terms for the consent orders?
Yea they built the house, but they didn't finish it so the back garden is still all sand and the house hasn't been painted or even sealed, the plaster is chipping off everywhere , they also need new flooring .. neither of them want to put money into the house to finish it in fear the other one is going to screw them over.
It really is a horrible situation, and we're all at a standstill. They didn't realise there was a timeframe until last month to sort this out so now they are rushing as it's up next month I'm sure .. but they've been fighting none stop over the house for the past 2 years anyway I doubt it's going to be sorted by the time the 2 year period is up .. each time they both come to an agreement one goes back on their word and the whole thing turns sour.
Yea with the consent order, she's agreed (for the moment) to walk away from the house with no financial gains because my partner refuses to pay since there is no equity. Will a judge see that as fair?! Or do you think he will end up having to pay?! Or make them sell?!
We valued the house recently and it came back $50k under what the mortgage is.
To be honest, we don't even want the house and she doesn't want the house, nobody wants to pay to finish and sell the house and break even, then nobody wants debt .. but of course everybody thinks they are entitled to a whole lot of money ðŸ˜«ðŸ˜«ðŸ˜«
Firstly just to clarify regarding the time period of separation & court applications...
There is a 2 year time frame for defactos as Willo mentioned, however that is for an initiating application, normally used if one party is refusing to came to the table to sort things out..
If there is a fear of his ex doing that, then you should file an initiating application within the time frame if possible.... It appears from what you have written though that both parties want a resolution somehow. In that case a joint consent order application can be done at any time before or after the 2 years. You don't need to have filed an initiating application.
You may be aware that property values are declining in certain parts of the country, particularly Sydney & Melbourne... The forecast is for that to continue unfortunately.
It's a gamble whether sinking money into it will pay off or not. It doesn't appear either side has the appetite for it... In that case you may be better to jut go to market as is, but best be guided by a professional in that area..
Unfortunately I think the most equitable thing to do is going to be to equally divide whatever debt remains after the sale.
In the application for orders, all assets of both parties need to be listed, but that dosen't mean everything is included in the pool for division.. It was a short relationship with no kids so should be relatively straightforward..
Any savings or assets acquired post separation that were the result of his own labor, should not be included in the pool for division