Trust Funds Dispute
The situation involves a dispute concerning funds transferred within a de facto relationship. The client, a resident of Victoria, was in a relationship for 30 months during which they transferred approximately AUD 170,000 to their partner's account to facilitate tax savings and future housing plans. Following disagreements, the partner departed recently with the full amount and has since been unresponsive to attempts by the client to retrieve the funds. The couple did not cohabit or own property together, but there were conversations regarding joint savings. Legal action has not yet been considered by the client, though it remains a possibility.
Questions about this case
These answers have been verified by a lawyer in the LEAP networkWhat legal recourse do I have to recover the money I transferred to my partner's account?
To recover the money, you can consider applying to the Family Court or Federal Circuit and Family Court of Australia for property settlement under the Family Law Act 1975. The court can determine asset divisions based on your financial relationship, contributions, and the duration of the relationship. Documenting all relevant agreements and communications is essential, and seeking legal advice is advisable.
How does Australian law define property ownership in a de facto relationship, and does it impact my situation?
In Australia, property ownership in a de facto relationship is regulated by the Family Law Act 1975. Generally, both parties may have entitlements to assets regardless of title, depending on contributions and future needs. The funds you transferred could be considered shared assets, potentially affecting your case.
Can I file a claim for economic compensation or financial adjustment due to my partner leaving with my savings?
You may file a claim for financial adjustment under the Family Law Act 1975 with the Family Court of Australia, taking into account your financial contributions during the de facto relationship.
What are the potential legal implications if my partner refuses to return the money?
If your partner does not return the funds, you may argue for property settlement adjustments under the Family Law Act 1975, which includes examining contributions made during the relationship.
Are there any time limitations or deadlines I need to be aware of when taking legal action in this scenario?
Yes, generally, you have up to two years from the date of separation to file a claim for property settlement or financial orders under the Family Law Act 1975.
What if there is no financial understanding regarding the money transferred with my partner and there is no proof regarding shared arrangements?
In absence of formal agreements or evidence, recovering the funds could be complex, but equitable claims such as unjust enrichment may still provide options.
