The Pitfalls of Transferring Property without finalising a Separation Agreement.
It is vitally important that, after separation, legal advice is sought to effectively cut all financial ties between you and your spouse/partner.
Many people consider that they can save themselves money by taking matters into their own hands by, for example, transferring property into their spouse’s name, and reaching an informal agreement (such as payment to the husband or wife) to save on legal costs.
It is important to note that there are many cost implications for doing so:
- Transferring property often incurs stamp duty, which is charged at a percentage of the value of the property.
- If there is no formal agreement in place, a spouse/partner may have rights to your property further down the track, ie superannuation, business interests, trust interests.
Formalising an agreement by way of Consent Orders or a Binding Financial Agreement can have many advantages:
- You will be exempt on paying any stamp duty, which is usually much more expensive than the costs spent on formalising your agreement reached;
- you will be protected from any future claims against your property, which will provide peace of mind to you and your family;
To discuss and arrange for the formalisation of any agreement, please contact our office to arrange for a fixed fee initial consultation. Please ring us on 1300 428 947 or email us at email@example.com
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