What do you do with relationship property? Your path to a fresh start

The breakdown of a relationship is incredibly stressful for all parties involved, but when you own a property, it has the potential to be a fresh kind of hell. Aside from the emotional and logistical turmoil, often the biggest source of contention is what happens to the family home after splitting up.

What legal advice will I need?

Different specialist areas of law are required. The legal services needed include a Family Lawyer, Relationship Property Lawyer and Residential Property or Conveyancing Lawyer. For complex relationship property disputes, further tax advice may need to be sought from your accountant.

What happens with a jointly owned property after splitting up?

Whether it’s the end of a marriage, civil union or de facto relationship, when it comes to a shared property, there are three options to consider:

• Purchasing your ex-partner’s interest
• Selling your interest to your ex-partner
• Selling the property together

No matter which option you are initially considering, to ensure a smooth, compliant and legally sound process it is essential to seek independent advice from a Family Lawyer and get them to draft a Separation Agreement.

Why do you need a Separation Agreement before you sell a house?

A Separation Agreement is a legally binding document to confirm the division of assets and liabilities of the relationship. The Separation Agreement will ensure neither party can make a future relationship property claim against the other in the future. It takes away any ambiguity and outlines expectations of what is expected in terms of conduct and cooperation. A Separation Agreement serves as the foundation for the transfer process.

Securing finance to buy your ex-partner’s interest

If you are buying out your ex’s share in the property, securing finance is likely high on your agenda. Arranging funds through a bank or other financial institution is typically expedited when a copy of a Separation Agreement is provided – the bank evaluates your financial situation in relation to the terms outlined in the agreement.

Selling your share of the property to your ex-partner

Sometimes it is mutually beneficial to sell your interest to your ex-partner, but with this comes the need for open and constructive communication. The Separation Agreement will be the base document for the transaction. It also protects your interests and establishes the framework for the property transfer.

Selling the property together

Sometimes the most appropriate course of action is to sell the property together. The Separation Agreement clarifies the distribution of the sale proceeds, safeguards your rights and establishes clear responsibilities and obligations of both parties throughout the process.

Getting to the stage of settlement can be complex, but by seeking legal advice from a Family Lawyer early in the process means you can proceed with confidence, safe in the knowledge you have a legal team serving your best interests. Contact us today for a no-obligation chat, click here or call 03 379 1740 to see if we can assist you.