Divorce, scenarios?

Just got off the phone with a friend, who is completely lost about what to do. The lawyer left for the day so there's no one else to consult, so I thought I would help out by asking the Somersoft brain trust as things are going to accelerate (in a bad way) over the weekend and with no legal counsel to reach out to things are getting scary.

They jointly own a property. Today the partner took off with both passports and all sorts of other identifying information. There's reason to believe (both from what has happened today and from things that have happened in the past) that the partner may attempt to sell it.

Is this possible if both people are on the title, and there's no power of attorney in place?

Secondly my friend asked the lawyer if a caveat could be put on the property, and he said not until a divorce has been officially filed. This didn't sound right, is it true?

Given a standard joint ownership scenario, what are the worst case scenarios one could imagine? Is my friend relatively protected by the standard laws? I mean surely the partner could not get away with any funny business unless there was forgery involved? There are no complex trusts or anything like that involved. Just a regular run of the mill house and ownership arrangement between husband and wife. I'm sure this is simple and rock solid?
 
You friend should immediately see or call a solicitor or a conveyance and lodge a caveat.
You have not mentioned where the title is. If they have a mortgage then the bank would have it. The other risk is the estranged wife may encumber the title with finance.

A caveat is the answer. You do not need to wait till the divorce is filed.
 
Well if it's in joint names then you can't do anything to the property (Sell, mortgage etc) without both people signing off on it. But I agree a caveat is prudent.
 
Thanks guys. It's in QLD by the way. As yes it is mortgaged so the bank would have the title.

And I think I'm going to advise her to use a different lawyer. When he said caveats couldn't be registered until the divorce was filed I thought that sounded suspect. Thanks for confirming. Are there any other scenarios I need to consider? If someone is desperate enough, what crazy but possible (if unlikely) options would they have?
 
I don't understand this, isn't this good? My friend would keep the title and the loan? The house is nearly paid off. Unless I'm misreading this.

No it's not good (not that it's possible anyway since it requires 2 signatures....)
The wife could get a mortgage for say $200k, take the money then run leaving him with the loan to pay off.
 
Encumber the property with finance means the partner may try get additional loans and then do a runner with the money.

Strictly speaking, neither person can do anything with the property without some cooperation from the other person. They're both on the title and the mortgage, they both have to sign a sale contract or a loan contract.

I'm very concerned however that the partner has taken identification documents. There's a very real threat that the partner is planning to commit fraud. Between identification documents and a copy of someones signature it would be very easy to sell a property without the other persons consent.

This probably isn't going to be able to occur before Monday morning, but your friend should legal advice and mentioning all this as soon as possible. Stealing someones drivers license or passport is also a criminal act.

Also, perhaps the locks need to be changed?
 
No it's not good (not that it's possible anyway since it requires 2 signatures....)
The wife could get a mortgage for say $200k, take the money then run leaving him with the loan to pay off.

But surely getting that 200k loan against the property requires two signatures too?
 
I'm very concerned however that the partner has taken identification documents. There's a very real threat that the partner is planning to commit fraud. Between identification documents and a copy of someones signature it would be very easy to sell a property without the other persons consent.

Would my friend be liable for a loan that was taken out fraudulently under their name?
 
It's really easy for a person to get a copy of their partners signature.

Scan it in, and Adobe Acrobat will put it onto a PDF file even easier (not Adobe Reader which is a free download, Acrobat costs about $400).

Signatures are one of the foundations of our legal system. They are completely unsecured.
 
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Any LOC/offset/savings funds available? I'd be changing passwords for internet banking, and be first in line at the bank to draw it out and lock it away somewhere before the other party does.

Then again, I'm a spiteful SOB!

pinkboy
 
Any LOC/offset/savings funds available? I'd be changing passwords for internet banking, and be first in line at the bank to draw it out and lock it away somewhere before the other party does.

Then again, I'm a spiteful SOB!

pinkboy

No, thank god. They refinanced recently with an LOC and it fell through. Luckiest. Rejection. Ever.

No offset either cause it's P&I. I'm racking my brain trying to think of what other schemes could be pulled. I don't want either party hurt, including the offending one. I care about both. I want to preempt any stupidity on both sides.
 
Just got off the phone with a friend, who is completely lost about what to do. The lawyer left for the day so there's no one else to consult, so I thought I would help out by asking the Somersoft brain trust as things are going to accelerate (in a bad way) over the weekend and with no legal counsel to reach out to things are getting scary.

They jointly own a property. Today the partner took off with both passports and all sorts of other identifying information. There's reason to believe (both from what has happened today and from things that have happened in the past) that the partner may attempt to sell it.

Is this possible if both people are on the title, and there's no power of attorney in place?

Secondly my friend asked the lawyer if a caveat could be put on the property, and he said not until a divorce has been officially filed. This didn't sound right, is it true?

Given a standard joint ownership scenario, what are the worst case scenarios one could imagine? Is my friend relatively protected by the standard laws? I mean surely the partner could not get away with any funny business unless there was forgery involved? There are no complex trusts or anything like that involved. Just a regular run of the mill house and ownership arrangement between husband and wife. I'm sure this is simple and rock solid?

A caveat be be lodged on several different basis - one under equitable principles and 2 under the family law act. This could be done before a divorce or breakup or after. And there is no need to be in a relationship to be able to lodge a caveat - it could be 2 friends where 1 has provided money for the property and the property is in the name of the other.

But if both names on title why lodge a caveat? Title cannot transferred or further mortgaged without the consent of the other. It could be fraudulently done, but if they can forge signatures on a mortgage they could do it on a withdrawal of caveat form.
 
:eek:

Does it happen often Terry? The friend being liable. Is it only if you can't prove it was fraud that they would become liable?

I don't know. But think from the bank's point of view. If they have lent money out legitimately - unknown that fraud is involved - and they have registered the mortgage on title then they have a good interest in the property.

Often in these cases the person witnessing the documents can be liable - this is why it is dangerous to be a JP! If the person who loses out sues the person who witnesses and this person has no assets....

I am not sure if there is compensation fund for this sort of thing. There is for title fraud I believe.
 
It is not fraud if the bank allows a redraw with only one signature.

Ring the bank- stop any redraws without both signature and telephone confirmation from your mate
Cancel joint liability bankcards etc
Change passwords etc
Clear and close joint accounts- or at least take half the proceeds
Get a caveat for starters.
 
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