Inheritance and Property Division
The client, located in Victoria, is exploring property division amidst a potential divorce. They acquired a property prior to the marriage, contributing to the down payment and sharing mortgage payments equally with their partner. Following the partner's inheritance about five years ago, they used those funds to pay off the mortgages on both properties, while the client continues to provide $1,000/month towards the household and also supports expenses for the children. The client holds the title for both properties, while their partner is listed on one. They are contemplating spousal maintenance post-divorce and are interested in safeguarding their financial interests.
Questions about this case
These answers have been verified by a lawyer in the LEAP networkHow will the court consider my financial contributions to the properties during the marriage when determining property division?
In Victoria, the Family Court evaluates the financial contributions of both spouses when deciding on property division. Contributions such as the initial purchase of a property, down payments, and ongoing mortgage payments are regarded as significant. Additionally, your role in providing financial support for the family, especially for the children's needs, is important. The Court takes into account all contributions made, whether direct or indirect, including homemaker duties and ongoing financial support of $1,000 per month over several years. The aim is to achieve a fair and equitable division based on both financial and non-financial contributions.
What impact does an inheritance have on the division of matrimonial assets?
In Victoria, inheritances are typically included in the asset pool when dividing matrimonial property, particularly if they were used to pay off debts or improve shared assets. The court will evaluate the contribution from the inheritance alongside other contributions made by both parties. This means that even though your partner's inheritance contributed to paying off the properties, your ongoing financial contributions and roles within the family will also be given significant weight. The court aspires to fairly divide assets while considering individual contributions and future needs.
Am I entitled to any spousal maintenance considering the financial dynamics of our marriage?
In Australia, the entitlement to spousal maintenance is determined by the financial needs of one party and the other party’s capacity to provide support. Since you have been the primary financial supporter of the children and made additional contributions, you may demonstrate a legitimate need for spousal maintenance. The court will evaluate your ability to support yourself after the divorce, your contributions during the marriage, and any earning disparities. Given your partner's financial situation, particularly after the inheritance, a claim for spousal maintenance may be warranted.
What strategies can I implement now to protect my financial interests before initiating a divorce?
To protect your financial interests prior to a divorce, consider documenting all financial contributions and responsibilities, particularly those related to the children. Ensure access to financial records, including bank statements and evidence of your monthly financial support. Seeking preliminary legal counsel can provide clarity on your rights and obligations and help assess the potential effects of property division on your finances. Exploring negotiation of a financial agreement with your partner can also establish clear terms concerning property and support.
