by Lozzo  03/11/2012  251 Page Views
2 Comments  Family & de facto law, financial agreements, consent orders
Hello all,

I am writing this in an attempt to get a clearer picture of where my housemate/landlord stands with his approaching divorce.

Today H (Husband) received a letter from W (Wifes) solicitors requesting a financial settlement.

They have been married since 2009 and separated in Jan 2012. Prior to this they have been in a defacto relationship,living together since 2003.There is no chance of reconciliation.

H brought into the relationship two homes which he inherited when his mother passed away in 1996. One home is his current residence and is valued at $1.7 million. This home was also the marital home for H and W for the 3 years prior to the separation. Previously they had shared rental properties whilst deriving rental income from this property.

The second home is valued at $500k and has never been a marital residence. A rental income for H is derived from this.

H has no other assets apart from household items, furniture etc and does not work. He lives off rental income from the 2 properties.

Prop 1 ($1.7m) was remortgaged and has $100k owing. The same for prop 2 ($500K) and has $120k owing. Both properties and any mortgage owing are in H's name.

W owns a property valued at $500k bought during the relationship but with no financial input from H. It has a mortgage of $220K outstanding. Property and mortgage are in W's name. She has a superannuation fund of $50k and cash savings of $35K.

The letter recieved today by H's legal representatives has indicated that W is entitled to over 50% of all total marital assets due to her being the primary income earner during the relationship and for managing H's rental incomes. Also W has paid in the region of $20k for upgrades to prop 1. In addition W has been the primary homemaker, cooking, cleaning etc.

The letter stated that W would settle for possession of prop 2 (free from encumbrance) AND a cash amount of $500K.

What I am trying to establish is how H's two properties are assessed. As inherited assets are they considered part of marital assets or are they considered separate property.

Does W have a realistic claim on H's inherited (before relationship) properties.

There are no children involved although W did bear the cost of attempts at IVF.

Thanks in advance if anyone can help shed a little light on the matter and apologies if this has been asked before.

Lawrence