I thought de facto had very similar rights to assets ?
Trusts to protect real estate in case of divorce
- Thread starter TEG
- Start date
I thought de facto had very similar rights to assets ?
They do, and that is what is being said here. And I believe now there doesn't have to be cohabitation for someone to claim being defacto?
I thought you only had to keep tax records for 7
They can and do ask. Not able to be supplied if you don't have them.
Yes. You could be a defacto and not necessarily have lived together.
Under the Succession Act you can even have a wife/husband and a defacto at the same time. eg. You were married but having an affair - you die without a will then under the intestacy laws in NSW both of your spouses would share you estate.
Not sure about the Family Law Act.
Hi Guys,
Instead of trying to ´protect´ my assets via pre-nupt or trusts, how about this idea:
Before marriage:-
- Refinance all 3 IP´s to extract the max equity (i.e LVR 90%)
- using this equity purchase additional IP´s with min. deposit on the new IPś (say 5%).
- for this example, say i can purchase an additional 7 IP´s (purely hyopthetical to keep
the numbers simple).
So now I have 10 IPś with very high LVR (90%+).
If I get married and then divorced, is there some kind of private arbitration or negotiation that I can enter with the ex-wife to split the assets without incurring high legal fees and a long dispute and going through the court system?
If the wife came into the marriage owning very little, and in case of marriage breakdown, can I offer to give the ex-wife, say 4 IPś, and I keep 6 (or 3 : 7, or some other combination).
This way, there is no need to sell any assets (minimise selling fees, CGT, etc).
And I think this would be fair, since we would each own some of the assets (IP´s) without actually selling ALL the assets and then dividing up the assets from the proceeds of the sale.
I think the ex-wife would be getting a pretty good deal, since she would get , say 3 IP´s (of course they would all be highly geared!)... likewise , i could keep the majority of the IPś (say 6 IP´s , also highly geared).
If she came with nothing, and ended up getting 3 IP´s , i think this would be a good deal for her.
Does this idea make sense? Does it have any merit?
I prefer this to having to sell any IPś in case of divorce and then dividing the proceeds.
Of course, if the marriage is a happy one and we never divorce, we both end up enjoying the benefits of being invested in the real estate market, and watch as our IP´s grow in value over the years
I think this would be a good way of doing things, since my plan all along was to buy as much real estate as I can, as early as I can, and NEVER SELL. (buy, reno, reval, and repeat as often as possible).
Thanks,
Instead of trying to ´protect´ my assets via pre-nupt or trusts, how about this idea:
Before marriage:-
- Refinance all 3 IP´s to extract the max equity (i.e LVR 90%)
- using this equity purchase additional IP´s with min. deposit on the new IPś (say 5%).
- for this example, say i can purchase an additional 7 IP´s (purely hyopthetical to keep
the numbers simple).
So now I have 10 IPś with very high LVR (90%+).
If I get married and then divorced, is there some kind of private arbitration or negotiation that I can enter with the ex-wife to split the assets without incurring high legal fees and a long dispute and going through the court system?
If the wife came into the marriage owning very little, and in case of marriage breakdown, can I offer to give the ex-wife, say 4 IPś, and I keep 6 (or 3 : 7, or some other combination).
This way, there is no need to sell any assets (minimise selling fees, CGT, etc).
And I think this would be fair, since we would each own some of the assets (IP´s) without actually selling ALL the assets and then dividing up the assets from the proceeds of the sale.
I think the ex-wife would be getting a pretty good deal, since she would get , say 3 IP´s (of course they would all be highly geared!)... likewise , i could keep the majority of the IPś (say 6 IP´s , also highly geared).
If she came with nothing, and ended up getting 3 IP´s , i think this would be a good deal for her.
Does this idea make sense? Does it have any merit?
I prefer this to having to sell any IPś in case of divorce and then dividing the proceeds.
Of course, if the marriage is a happy one and we never divorce, we both end up enjoying the benefits of being invested in the real estate market, and watch as our IP´s grow in value over the years
I think this would be a good way of doing things, since my plan all along was to buy as much real estate as I can, as early as I can, and NEVER SELL. (buy, reno, reval, and repeat as often as possible).
Thanks,
I think the nail was hit on the head early on in the thread. Find a nice girl who is worth more than you.
Perhaps you won't find her at a B&S ball, but there are discreet introduction agencies for high net worth individuals and there are many single women out there who have exactly the same problem. They would like to find a good relationship but are aware that they need to have their assets protected.
Just a thought...
Perhaps you won't find her at a B&S ball, but there are discreet introduction agencies for high net worth individuals and there are many single women out there who have exactly the same problem. They would like to find a good relationship but are aware that they need to have their assets protected.
Just a thought...
You can go through private arbitration if you like. You can offer her any number of IPs in this scenario that you like. Whether she accepts it or otherwise will then be entirely up to her (with perhaps influence from her lawyer). If she's unhappy with this, there's every chance you could end up with high legal fees and a long dispute through the courts regardless of your intention.
Instead of trying to ´protect´ my assets via pre-nupt or trusts, how about this idea:
Before marriage:-
- Refinance all 3 IP´s to extract the max equity (i.e LVR 90%)
- using this equity purchase additional IP´s with min. deposit on the new IPś (say 5%).
- for this example, say i can purchase an additional 7 IP´s (purely hyopthetical to keep
the numbers simple).
So now I have 10 IPś with very high LVR (90%+).
If I get married and then divorced, is there some kind of private arbitration or negotiation that I can enter with the ex-wife to split the assets without incurring high legal fees and a long dispute and going through the court system? Mediation is the best course if you can manage to be civil and work out a mutually acceptable outcome.
If the wife came into the marriage owning very little, and in case of marriage breakdown, can I offer to give the ex-wife, say 4 IPś, and I keep 6 (or 3 : 7, or some other combination).
This way, there is no need to sell any assets (minimise selling fees, CGT, etc).
And I think this would be fair, since we would each own some of the assets (IP´s) without actually selling ALL the assets and then dividing up the assets from the proceeds of the sale.
I think the ex-wife would be getting a pretty good deal, since she would get , say 3 IP´s (of course they would all be highly geared!)... likewise , i could keep the majority of the IPś (say 6 IP´s , also highly geared).
If she came with nothing, and ended up getting 3 IP´s , i think this would be a good deal for her.
Why would this be a good deal for her. She is "getting" three IPs, all highly geared. If she cannot service them, how is that good for her? On one hand I'm a bit concerned that you are "planning" on failure, but on the other hand I think it is good to be aware of an exit strategy if things turn south.
Does this idea make sense? Does it have any merit?
I prefer this to having to sell any IPś in case of divorce and then dividing the proceeds.
Of course, if the marriage is a happy one and we never divorce, we both end up enjoying the benefits of being invested in the real estate market, and watch as our IP´s grow in value over the years
Much better attitude.
I think this would be a good way of doing things, since my plan all along was to buy as much real estate as I can, as early as I can, and NEVER SELL. (buy, reno, reval, and repeat as often as possible).
Thanks,
What if your future wife has more than you? I had a house when I met hubby but he had $20K in cash. I had $20K equity, so things were fairly equal.
I understand your desire to protect what you have built up but life is full of risk, and all you can do is try to lessen the risk of having to give away some of what you have, particularly early on in the marriage, when your future partner may not have contributed financially or via raising children. Once you've been together a long time, all this planning is out the window.
Not really a solution but does it take both parties to get a divorce? Or could you just refuse to divorce your spouse and thus not have to split assets?
LOL - Divorce involves two or more people. If one is not co-operative court can make orders. Family Court has more powers than any other agency in country. You can ignore Court orders if you want. Go to jail !
One way to circumvent court is to get involved in a heavy tax scam like Wickenby arrangements. They wont make orders while tax investigation, audit and appeal process is ongoing as net assets cannot be ascertained. It can be VERY frustrating though. With Wickenby many wives got VERY angry and tried to dump their spouses to find this problem.
One way to circumvent court is to get involved in a heavy tax scam like Wickenby arrangements. They wont make orders while tax investigation, audit and appeal process is ongoing as net assets cannot be ascertained. It can be VERY frustrating though. With Wickenby many wives got VERY angry and tried to dump their spouses to find this problem.
Simple way to protect yourself financially from divorce is as follows:
* If you're planning to move in with, or marry your significant other, as youself the simple question, "Do I care so much about this person that I willing to give this person at least half of my all assets?"
* If the answer is no, then just keep dating and perhaps get to know them a bit better.
* If the answer is yes, then proceed. If later you split up an you loose half your assets, at least you made an informed decision that you can live with.
I know this is a very flipant attitude, but I think most people act far to flippantly in their decisions to enter into a legally recognised relationship. We still did an enormous amount of due dilligence and both thought long and hard about each other before we were married. After 13 years of marriage I haven't regretted my decision for a moment.
* If you're planning to move in with, or marry your significant other, as youself the simple question, "Do I care so much about this person that I willing to give this person at least half of my all assets?"
* If the answer is no, then just keep dating and perhaps get to know them a bit better.
* If the answer is yes, then proceed. If later you split up an you loose half your assets, at least you made an informed decision that you can live with.
I know this is a very flipant attitude, but I think most people act far to flippantly in their decisions to enter into a legally recognised relationship. We still did an enormous amount of due dilligence and both thought long and hard about each other before we were married. After 13 years of marriage I haven't regretted my decision for a moment.
Our unmarried son has a fully owned $300,000 property in his name at age 26 (paid for with some help from us, an inheritance and his own resources) . We had a lawyer draw up a legally binding document that indicated we had "loaned " him $200,000 to assist with purchase of the property at an annual interest rate of 10 percent. No payments are required unless we decide we wish to call the loan in (plus of course all interest owed.) The amount "owed " will quickly escalate to a point where a partner (which by the way he now has ... nice girl but who knows...?) would not be able to get access to the asset. Maybe you have a relative or parent you can trust to establish this sort of arrangement? Absolute trust is critical of course.
Steve
Steve
Steve - couple of problems with this. Did you actually loan the money?
What would happen if you went bankrupt? If you died?
Yeah, what about your spouse tho?
We use the points system. As long as I earn enough points she stays happy.
It keeps me on my toes because she sets the rules for how points are earned and their intrinsic value at any given point in time.
My wife is 55 and I am 63 and we sold 5 fully owned investment properties (4 houses and a retail shop) about 3 years ago so hopefully bankruptcy is not on the horizon
Although we did not directly "loan" my son more than approx $50,000 a further $100,000 or so was an inheritance that we flicked direct to him rather than claiming our two thirds share. We also have a complicated trust established to protect our substantial super fund and family home from being accessed by any partner of our son's after we die . (although we are trying to avoid dropping off this mortal coil anytime soon ) There was no direct record made when the loan agreement was drawn up as to how my son's home was funded however I would obviously strongly advise anyone contemplating the process I have outlined to get expert advice from their lawyer and accountant.
Steve
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As long as you get an 8 out of 10 you should be right (as per the banking thread).
