All Topics / Legal & Accounting / money hungry partners

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  • Profile photo of MillyMilly
    Member
    @milly
    Join Date: 2004
    Post Count: 288

    hi there

    I have power of attourney for my brother who has difficulties looking after his affairs. He owns his own unit and car outright.

    A few months back he met a woman with no material assets, who has moved in with him. They are both on disability pension, in their 40s and plan to wed next year. Recently he told me he wants to sell up and move closer to the city. As I hold the title deed they can’t make a move without consulting me but I am in no position to veto.

    I wonder just how much a spouse can claim if/when a breakup occurrs. I suspect if they go ahead and sell this property and buy a new one, the spouse will have a greater claim.

    my elderly father is concerned saying he wants to ensure my brother is safe with his own home.

    It irritates the hell out of me that someone with nothing can enter a relationship with nothing but that 5 yrs later can put in a claim for half the ex’s assets. And don’t go telling me that person contributed by cooking dinners, sweeping floors and sewing curtains. They would’ve had to do that ANYWHERE they lived. AND here they got to live RENT FREE which should be bonus enough.

    As far as I know there is no way to tie up my brothers home to make it safe from evil preditors. A pre nup isn’t binding and its damn awkward to suggest to my ‘stary eyed bro’.

    Does anyone have any stories on this topic to share ? either personal or second hand.? I would kinda like to know things like “after 5 yrs she would be entitled to say 20k”

    thanks for any comments

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196

    Hi Milly

    One possible avenue to look at is to set up a trust (probably with a corporate trustee) and have the trust buy the new property.

    Your brother or you or whoever you wish will then control the trust and the asset should be protected from any claim from the Family Law court.

    Of course, check with your solicitor about this.

    Cheers, Paul

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    Profile photo of Don NicolussiDon Nicolussi
    Participant
    @don
    Join Date: 2005
    Post Count: 1,086

    Hi Milly,

    I was just about to answer when I decided to just say seek legal advice now about this even if it is just to put your mind at ease. The basic points are that as a defacto spouse or spouse his new partner would have a financial claim in the event of a break up and there are ways to protect these assests. You are on the right track – formulas are used and I suspect it would be more than a 20k windfall to the new addition.

    regards

    don


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    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    Unfortuately Trusts are not away around Family Law issues. The Family Law Court can unravel trusts. But they are still a good idea to have.

    My Grandfather just went through a ‘battle’ with is ex defacto of 20 years. He owned his house outright before they met. In the end they had an out of court settlement, him giving her approx 30% of the value of the house. (she also stole all the furniture and his family photos while in hospital!)

    Terryw
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