“Transfer your property to someone else, and he’ll never get it!”
In a recent property settlement matter the Husband, knowing that his marriage was coming to an end, and in anticipation of his ex-partner’s application to the Family Court for property division orders, decided to transfer an asset to his daughter in an attempt to reduce the property pool available for division.
Unluckily for him, the Courts do not look favourably on actions of individuals who attempt to circumvent justice. There are particular orders provided by the Court that allow for transfers of this nature to be set aside.
Whilst the Family Court will do everything it can to protect the assets of the marriage, YOU must act quickly, because if you don’t, and assets are dissipated to third parties by arms-length transactions, it may very well mean that the asset is forever lost. An arms-length transaction is when the person acquiring the asset has acquired it in good faith and without any collusion.
What if the property was yours to begin with?
On the flip-side, whilst you may have the view that a property is yours because you brought it into the relationship and maintained the property, this doesn’t necessarily mean that you can do whatever you want with it.
Get legal advice before you decide to dispose of, or further mortgage, the property because if the Court finds that your actions in dealing with the property should be set aside because it lowers the available pool of assets to be distributed, there may be significant cost orders made against you.