Divorces can be messy, and when there is a property involved, it can get even messier. Who gets the investment property in a divorce in Australia?
In Australia, the Family Court has the power to make orders about division of property after a divorce. The court takes into account a number of factors when making these orders, including:
- The financial contribution each spouse made to the acquisition, conservation or improvement of the property. For example, one spouse may have funded the deposit, while the other paid for ongoing mortgage repayments and improvements.
- The needs of each spouse – this would include any benefits either spouse would receive from retaining ownership of the property, such as rental income.
- The current value of the property – the current value of the property is important because it helps to determine who gets what. The value of the property is likely to change over time, so it’s important to keep that in mind when dividing assets.
- Any debts or liabilities associated with the property – these are important when separating assets in a divorce because they can reduce the equity of the property. If one If a spouse is ordered to take on the mortgage liability, this will also need to be considered in any settlement agreement.
The court will also consider any other relevant factors, such as:
- The non-financial contribution each spouse made to the acquisition, conservation or improvement of the property;
- The duration of the marriage, and;
- The future needs of any dependent children.
In most cases, the court will order that the property be sold and the proceeds divided between the parties. However, the court does have the power to make other orders, such as ordering one party to transfer their interest in the property to the other party.
If you are going through a divorce and there is property involved, it is important to get legal advice to ensure that your rights are protected. It’s important to remember that any decision made about who gets the investment property in a divorce will have long-term implications. With careful planning and consideration, it is possible to reach an agreement that is fair for both parties involved.
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