Hello
everyone
At
the end of a relationship the Family Law Act sets out the factors that the
Family Court needs to take into account
when dividing property and financial resources, as well as providing for
maintenance of the parties to a relationship after separation.
Broadly
speaking, after the assets, liabilities and financial resources of the
relationship have been identified the Court will then assess the respective
contributions, financial and otherwise that each party has made to those
assets, liabilities and financial resources. The Court will thereafter examine
the parties' current and future needs in determining how the assets,
liabilities and financial resources are to be apportioned.
In
most cases one of the parties has received some "help" from their
family either by way of inheritance, gift or loan.
An
inheritance is usually easy to identify as it will be recorded in the estate
records. How it is dealt with will usually depend on when it was received, how
it was applied and its quantum.
A
loan that has been documented is usually the easiest to deal with, thus if the
parents have lent money to one or both of the parties and have made it clear in
writing they expect to be paid back, with interest, that loan will usually be
taken into account like all other liabilities to third parties and paid back in
full.
Problems
often arise when one or both sets of parents give their child and their child's
partner some money by way of gift, but when the relationship is over they want
the money back. Gifts will be taken into
account as a contribution but unless documented as repayable they are unlikely
to be paid back in full if at all.
A
gift is just that, and the fact that you now do not like the spouse of your
child does not mean that you can recall the gift.
If
you want money from your family to be exempt from the assets and liabilities
available for division the best way to ensure that this will happen is to enter
into a loan agreement or if the money is a gift or inheritance sign a Binding
Financial Agreement to exclude money from family from the matrimonial pool.
As
always please feel free to comment on this or any other of my blogs. I
would also be happy to respond to any questions you may have on this topic.
If
you have any further queries please feel free to contact me directly at
Septimus Jones & Lee on (03) 9613 6555
