All Topics / Help Needed! / Potentially losing half of the value of my property/ies

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  • Profile photo of chaidchaid
    Participant
    @chaid
    Join Date: 2008
    Post Count: 1

    Hi,

    I purchased a property 4 years ago and moved in to that property with my defacto partner straight away. We have both lived there since. I understand that would mean she is entitled to half of this property, despite the fact that I have paid every cent of the mortgage myself (no contributions from her at all).

    I would like to purchase another property now, but am concerned that I could get myself into a situation where I could potentially lose half of the value of both properties if we happen to split in the future. I have worked very hard in my life to become successful career-wise whilst she is only just beginning. I have put off buying again to avoid this potential issue, but feel I shouldn't. The relationship is all good, but I worry about losing so much of what I have built up over the last 15 years.

    My question is, is there anything I can do (apart from a prenup) to avoid potentially losing so much? A trust or anything else? If a trust, am I likely to be (much) worse off tax-wise? Pros/cons?

    I'm on the highest tax bracket and my partner is on the lowest so, a) it would make it far more tax-effective to have it 100% under my name which will be difficult for her to accept; and b) I will be paying the whole thing anyway.

    I feel bad writing this, but want to make sure I protect myself. Any help would be much appreciated. Alternatively, anywhere I can get free advice?

    Thank you!

    Profile photo of Luke.SLuke.S
    Member
    @luke.s
    Join Date: 2006
    Post Count: 23

    Mate,

    I'm sure you have heard it before..

    FREE ADVICE IS THE WORST ADVICE

    Go and sit down with a good lawer. Have a talk and pay them for their professional time.

    Profile photo of yarposyarpos
    Member
    @yarpos
    Join Date: 2004
    Post Count: 247

    I've been round this loop and your concerns are valid….if children come into the equation you can actually lose more than half…oh yes and then theres your super which is also now on the table.   Putting the invest property in your name only is just good tax planning,  it wont make much difference if the worst was to happen.    Get some good professional advice to see were you are on the sliding scale of committment.

    Profile photo of JLJL
    Member
    @jl
    Join Date: 2007
    Post Count: 110

    Chaid
    Why after 4 years of living with your defacto, do you still have these concerns?  I can understand this when you just move in, but if you don't love her, or you aren't sure, or don't trust her, or she doesn't trust you (hummmm), then isn't it time to sort this out.  I would be thinking more about this than protecting your investments.  
    If you aren't sure, then way waste more time investing in something you are not sure about (would you do this on an investment property) . If your defacto is not your true love, she may be out there somewhere – investing????
    Good luck and I'd be seeing a lawyer no matter what you decide.
    JL

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

    The family law court can unravel trusts and companies when looking at property settlements so these will not necessarily help in this regard. There are other good reasons to have a  trust too, so they are still worth looking at.

    I think the only way to be totally safe is to live separately and be celibate!

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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