Property Settlement Following Separation: What You Need to Know

Property Settlement is one of the most commonly discussed issues after separation. It is important to take note that this matter is different from a divorce, which involves the legal termination of a marriage. A divorce can only be filed at least 12 months after the separation, but even without applying for this, you can get started with the property settlement concerns. Put simply, a property settlement refers to an arrangement where separating parties decide on how to divide assets, liabilities, and financial resources.

How Does a Property Settlement After Separation Proceed?

Family Lawyers will serve as your guide and representative throughout every step of the property settlement process, so you can be sure that you handle all legal matters correctly and do not miss out on anything important. The process often begins by determining the value of each parties’ assets and debts, which includes identifying which of these are jointly and individually held.

Next, the Court will assess individual contributions from each party. This step can include financial or monetary contributions from income, inheritances, and the like, as well as non-financial contributions from home renovations or something similar. Aside from these two, parental and familial contributions will also be assessed as caring for the family’s welfare is considered to be on the same level as working a full-time job.

Once the individual contributions are examined, the Court will then determine your current and future needs. They will look into factors such as age, health condition, earning capacity, financial resources, duration of marriage, and other things to see how these may affect each parties’ future. After the above process has been met, the last step will be to review the proposed division or outcome for the Property Settlement and determine whether it is just and equitable. The Family Law Act provides several guidelines for the Court to make such a decision.

Applying for a Property Settlement

Property Settlement orders can apply to married couples and de facto relationships, with both having provisions outlined in the Family Law Act. Typically, married couples have to apply for property settlement and adjustments within 12 months of the divorce becoming finalized, while those in de facto relationships must do it within 2 years after the relationship ended.

Family Lawyers specialise in such matters, so the first thing you can do is to look for a reputable lawyer who can help you with your case. In some cases, you and your former spouse may reach an informal agreement without needing a lawyer, but even so, this will not be enforceable in court. Thus, it is still better to have a binding document that states the division of your properties clearly to prevent conflict from arising in the future.

Consent Order for Property Settlement

While it is highly advisable that you seek legal advice when dealing with property settlements, this does not necessarily mean you need to go to court to handle the matter. If you can agree on property division without Court mediation, you can instead get a written financial agreement, or a consent order approved by the Court. No matter what option you choose, getting legal assistance will be beneficial in forging your agreements.

The property settlement process following separation can be tricky and challenging, especially if separating parties have conflicting interests. Thus, getting legal advice and help on this matter will be extremely helpful and beneficial as it ensures that you go through proper procedures. Be sure to choose a lawyer who has experience and expertise in family law to get the best outcome. Platinum Lawyers are experienced Divorce and Family Lawyers who can assist you with your property settlement following a divorce.

Get in touch with us today at (02) 8084 2764 to discuss your situation.

Buy-Now-Pay-Later Services: Can They Affect Your Chances of Securing A Home Loan?

 

‘Buy Now, Pay Later’ services have taken Australia by storm. Their appeal comes from being a payment service that is interest-free and time-convenient among other things. As Property Lawyers and Licensed Conveyancers Sydney, Platinum Lawyers wishes to educate consumers on the need for responsible spending when using such services.

Providers such as Afterpay, Zip Pay, Brightepay, Openpay, Certegy Ezi-pay have increased in popularity by leaps and bounds and show no signs of slowing down, with a 400 percent growth between 2016 and 2018. The flip side of the popularity of such services is that many consumers are finding out that using such payment options could negatively affect their credit health – and their chances of securing a home loan – if they’re not careful.

If you’re an existing customer of a Buy Now, Pay Later service or are thinking of becoming one, then read on to find out how you can use such providers responsibly, without allowing it to adversely affect your credit score.

What Is a Buy Now, Pay Later Service?

A Buy Now, Pay Later arrangement allows you to order or purchase a product and pay it off in installments, similarly to layby. They allow users to immediately delay payments which can take place over several weeks or over a longer period depending on which provider you choose.

Could Using a Buy Now, Pay Later Service Affect My Credit Score

Yes. Not all Buy Now, Pay Later providers will check your credit history which means you could end up ‘biting more than you can chew’ by taking up more credit than you can afford. Although not all Buy Now, Pay Later providers check credit history, failure to make payments in time can mean penalties that directly affect your history. Some of the service providers also state in their terms and conditions that they reserve the right to report any negative activity on your account (such as late payments, missed payments and defaults) to credit reporting agencies.

There have been some instances were applicants for a home loan were rejected by banks as a result of their buy-now-pay-later activities.

I Still Want to Use a Buyer Now, Pay Later Provider. How Can I Do So Responsibly?

There are several ways you can use a Buy Now, Pay Later provider while ensuring that you won’t run into any major issues.

1. Use Only One Buy Now Pay Later Account: Keep it simple by using only one account you will be able to keep track of how much you have spent and not run into trouble making payments.
2. Set a Budget and Stick to It: It can be tempting to use a Buy Now, Pay Later account to splurge on purchases, but this can quickly get you into trouble. Be smart about setting a budget for yourself so that you know that will be able to pay it off it in time without trouble.
3. Link to a Debit Card: Linking a Buy Now, Pay Later account to your credit card will only mean trouble, as doing so can easily increase your monthly credit balance as well as increased debt from interest.
4. Keep Tabs on Your Funds and Payments: Buy Now, Pay Later providers automatically deduct money from your debit card, so it Is important that you have sufficient funds in your account. Furthermore, it is essential that you are aware of when money will be deducted and check regularly to make sure there are no issues. You can set up notifications to keep up to date on everything and to keep track of purchases you’ve made.
5. Read the Terms and Conditions First: Despite sharing some similarities, Buy Now, Pay Later services are an alternative to paying upfront, lay-by or by credit card. By reading the terms and conditions you won’t run into any unwanted surprises including how your personal information is being handled.

Looking for a licensed Conveyancer in Sydney? Contact Platinum Lawyers Sydney today at (02) 8084 2764. 

Property Settlement Basics at the End of a Relationship

 

When two people are involved in a relationship (marriage or de facto) and they decide to part ways and end the relationship, both parties need to discuss the division of their financial assets among themselves.

This can include transferring the ownership of anything ranging from cash, real estate or any other form of property between the two parties. For example, if both parties may agree that the house goes to one of the parties who will pay the other party in cash for buying out their share in the house.

Whenever two parties have decided to end a relationship and separate, it is very important for them to get advice from a legal practitioner who specializes in family and property law. This will help you determine what you are entitled to.

 

Formalizing a Property Settlement

When both parties that were previously in a relationship, have reached an agreement on the settlement and division of property and other financial assets, it is very vital to make it legal and get it on paper.

Typically, there are two ways of recording an agreement between the two parties:

1. A Binding Financial Agreement (BFA)
2. A Consent Order

Both of these forms of agreements are almost the same, but the difference is that a Consent Order has been reviewed and analyzed by the Court, whereas a Binding Financial Agreement is merely an agreement between the two parties without the Court overseeing anything.

You should consult any expert family lawyer in Sydney to help you decide which form of agreement is the best for you.

Make Property Settlements Soon After Separation

If two parties who were previously in a relationship have not cut financial ties with each other, there is a possibility that either one of the parties can make a Property Settlement claim against the other.

This means that if you have acquired any new assets or have improved financial conditions after you were last in that relationship, all your new assets and finances are subject to a division, if a property settlement claim is made by the other party.

Another problem is the fact that if your partner sells or wastes any assets that were to become a part of the assets being divided, they will no longer be included in the settlement. The reason is that the Court cannot deal with finances and assets that don’t exist anymore.
Be sure to approach a reputable family law firm in Sydney to assist you with your property settlement. If you are in Sydney, Platinum Lawyers are the expert family lawyers in Sydney and can help you during these difficult times keeping your interest as a top priority when making a settlement. You can contact us at (02) 8084 2764.  for any queries or concerns.

How Can I Get Rent Relief ? Due to Covid-19 My Retail Business Is Struggling.

 

If you are a retail business owner struggling in the current challenging retail environment, paying high rent could be inflaming the situation. Many struggling retail tenants are attempting to renegotiate their leases or even considering selling up.

 Covid-19 – My Retail Business Is Struggling

If this is the position you find yourself in, it is worth considering your lease options. Difficult times require a clear decision-making process. This article outlines this process, including how to:

• You should assess your current situation;
• compare your risks;
• negotiate your lease; and 
• decide your next move.

1. You Should Assess Your Current Situation

The first practical task is to objectively assess your situation. To do so, you should consider:

1. Do you have a personal guarantee on the lease.  This is important because your personal assets will be on the line if the personal guarantee is triggered, and this may change how you approach any negotiations with the landlord;
2. Does the entity that signed the lease also operates other sites and has other assets.  This is important because the greater the company’s assets, the higher the chance that the landlord may sue for any losses it suffers.  If the company has no assets other than the business at hand, the threat to wind up is more credible;
3. how long you have left on the lease and any other long term contracts (e.g. equipment leases).  This is important because the landlord could potentially refuse to terminate the lease and keep sending you invoices for the rent for the remaining term.  If you have a long term remaining, this problem is more complex; 
4. is an urgent situation requiring immediate action or an issue that you will be able to negotiate over several months. For example, you should consider whether your retail business is struggling but close to break-even or in crisis;
5. how much your bank guarantee is (i.e. the security deposit your landlord may have required) and whether it will cover the amount of rent outstanding; and
6. Is a franchise agreement, licence agreement or other long term third party agreement. If there is, you will need to consider how to cancel or renegotiate these arrangements.

2. Balance Risk

Next, you will need to consider the risks of leaving with your existing commitments. For example, it may make sense to continue trading if:

• you have a long term lease with at least 3 years remaining;
• you have a personal guarantee; and 
• the company that signed the lease has other substantial assets, such as other profitable retail outlets.

This is because even if the business is struggling, continuing to trade or selling the business for a nominal price may be necessary to avoid the risks of a substantial claim from the landlord or finance company.  

However, if the lease has a relatively short period remaining, there is no personal guarantee and the company has no other assets,  you could potentially be more aggressive in your negotiations. In this situation, you may be able to terminate the lease and walk away with minimal personal risk. While you may face the loss of your bank guarantee and investments (e.g. the fit-out), you may be able to avoid other consequences, such as the landlord or finance company taking action against you personally.

3. Negotiate Hard

Once you have assessed your legal position and potential liabilities, you should contact the landlord as soon as possible and alert them that you are struggling. There is no point in hiding the crisis and trying to pay rent if the business is unsustainable.

Before calling your landlord, consider any mitigating circumstances that may help your case for requesting reduced rent. 

For example, the landlord may have failed to undertake building works (such as electricity or plumbing) that you ended up completing. Or perhaps the landlord stated that your location was a ‘premium site with a great history’, but you later learned that multiple businesses had failed in the same location.

Such issues could be justification for reduced rent, and now is the time to raise them. However, these kinds of claims require very careful legal analysis. Do not raise them without reasonable grounds.

4. Make a Decision

If the landlord treats the threat of you leaving seriously and negotiates some kind of rent reduction or suspension, make sure that your agreement is in writing. There should also be a deed of variation or other documentation to record the new arrangement.  A verbal discussion can often lead to confusion between the parties.  

For example, you might believe the deal involves a rent waiver, whilst the landlord might believe you have agreed to a temporary rent suspension, with the outstanding amount to be eventually paid back.  A written document will avoid any such confusion.

If the landlord does not respond to the request for a rent reduction, you may need to make a difficult decision. Importantly, you should make this decision before you run out of funds. If you continue to pay rent in the absence of a response from the landlord, you may end up in deeper trouble with the tax office or other third parties.

It is better to leave with a fighting fund to combat any claim from the landlord than to continue sustaining significant losses and later make a crisis decision with little or no money left.

Key Takeaways

If your retail business is struggling, you should obtain legal advice regarding your options as soon as possible. This will allow you to take considered action at the earliest possible time. If you find yourself in this situation, you should:

1. assess your current situation;
2. compare your risks;
3. negotiate; and
4. decide your next move.

Many people keep their heads in the sand when a business becomes loss-making. However, this only results in a delay in addressing the problems and may deepen the losses you face. If you need help with your retail lease, contact Platinum Lawyers (NSW) Pty Ltd Leasing Lawyers on (02) 8084 2764

The $25,000 HomeBuilder Grant: Are you Eligible?

 

In a bid to boost the economy and help out the construction industry, the Federal Government recently announced a $680 million HomeBuilder Scheme. This news has generated a lot of excitement as well as confusion as people are not entirely sure who’s eligible and who’s not. Platinum Lawyers has put together this guide to answer some of the most common questions with regards to the HomeBuilder grant.

What is the new HomeBuilder Grant?

It’s a tax-free payment of $25,000 offered by the government to eligible homeowners to build a new home or substantially renovate their existing homes.

When should I apply for it?

Applications are now being accepted and the last date for sending in the applications is 31, December 2020.

Is the HomeBuilder scheme only for first home buyers?

No, it’s for any property owner who meets the eligibility requirements. To determine if you qualify, read the eligibility requirements listed below.

Who is eligible?

Only those who meet the following criteria are eligible for the HomeBuilder grant:

• You must be an individual (not a company or a trust).
• You must be 18 years or older.
• You must be an Australian citizen.
• You must be an owner-occupier (which means it will be your principal place of residence).
• If you’re single, your annual taxable income must be less than $125,000 (as per your 2018-2019 or later tax returns).
• If you’re a couple, your annual taxable income must be less than $200,000 (as per your 2018-2019 or later tax returns).
• You must enter into a building contract between June 4, 2020 and December 31, 2020.
• If you’re building a new home the property value (house and land) must not exceed $750,000.
• If you’re buying an off-the-plan home, the contract price must not exceed $750,000.
• If you’re renovating an existing home, the renovation contract must be valued between $150,000 and $750,000. Another caveat to be noted here is that the property’s pre-renovation value (house and land) must not exceed $1.5 million.
• Construction must begin on or after 4, June 20 and within three months of the contract date.

Are all home renovations eligible for the grant?

Unfortunately, no. Renovations are only eligible if they substantially alter the existing dwelling, improving the safety, liveability or accessibility of the property. Renovations that would not qualify for the grant include swimming pools, granny flats, sheds, standalone structures such as outdoor spas, saunas and garages, tennis courts and other non-essential renovations.

Can I apply for other housing grants offered by my State if I’m applying for the HomeBuilder grant?

Yes, you can. The HomeBuilder Grant will not affect your eligibility for other housing grants offered by your state in anyway. For instance, you can access both the HomeBuilder grant as well as the First Home Buyer grant, as long as you qualify.

Are you a first home buyer looking for an Experienced Conveyancer in Sydney? Contact Platinum Lawyers. Our team of property lawyers and conveyancers in Sydney will provide you with smooth, hassle-free conveyancing so you can enjoy your home buying experience and leave all the boring paperwork and nitty-gritty details to us.

CALL (02) 8084 2764

Who’s Who In A Property Purchase?

 

When you are ready to purchase your first home, you will deal with a gathering of business specialists, so it is crucial to know who’s who in a property purchase because their interests may differ from yours. You might be unsure which pros you will need on your team if you buy property for the first time. However, surrounding oneself with a network of knowledgeable specialists may make the purchase process more manageable and less stressful.

During The Home-Buying Process, Who Will You Meet?

After you have decided to become a homeowner, created your budget and savings plans, and assessed your financial status, you will find that the home purchasing process involves several business specialists. You will be the superstar, with an assorted cast of supporting characters. You may not know each of them by name, but they all have essential duties to play, so it is important to know Who’s who in a property purchase.

 

Know who’s who in a property purchase as here’s whom you will probably run into and how you may make use of their expertise.

Real Estate Agent: The realtor is recruited by the merchant (or vendor) to advance the property, answer questions from possible buyers, and handle value dealings. Their purpose is to help the seller achieve the best possible outcome. Unless you deal with a private seller, you will almost certainly need to engage with a real estate agent.

Valuer: Valuers examine properties and provide an unbiased assessment of their market value. This is determined by the property, location, and current market conditions. Obtaining a valuation is a crucial step in the loan application procedure. For example, lenders hire an unbiased appraiser to analyse the property and determine the appropriate loan amount.

Lenders: The vast majority should get cash from a bank or monetary association to back their property buys. For example, it might be a big bank, a second-tier or non-major bank, or a specialty lender for more complex financial needs.

Documents Conveyancer: A licensed and competent conveyancer handles the legalities of a property transaction. They may also provide legal advice if they are a solicitor. In addition, your conveyancer will draft the paperwork to verify that the transfer of ownership complies with any state or territorial legal requirements.

Building and Pest Inspectors: Once you buy a house, the last thing you want is to discover structural problems or unwelcome guests. Enter your pest inspector and your building. These experts examine the property for any faults that could end up costing you money in the long run. However, the construction and pest report might be a helpful bargaining weapon if the property is still your dream home but requires some renovation.

Companies That Provide Insurance: It would be best to consider insurance when purchasing a home or an investment property because it is a high-value purchase with a long-term financial commitment. From mortgage protection to property insurance, insurance providers may assist with a wide range of coverage. Finance brokers can often help you with insurance or refer you to a trustworthy insurance broker.

We At Platinum Lawyers Have A Team Of Financial Brokers

Platinum lawyers provide diversification of services to ensure your mortgage application process goes smoothly. From a brokerage service for a financial situation to assisting in property buying, we handle any legal matter for combating debt crisis. Our involvement with the home loan industry will help you track down the best arrangement that meets your prerequisites. We will operate as a go-between for you and the lender, arranging a loan solution that meets your requirements. We will do the legwork and make sure your loan goes through as smoothly as possible and be available to help you along the way. Furthermore, we can also help with insurance, renovation financing, and debt consolidation, among other things.

Various business specialists are in charge of multiple components of a house sale.

• Your financial interests will not be represented by everyone involved in the process.
• Prepare to furnish your lender with much personal information.
• Prepare to ask your lender, the home seller, the home inspector, and various other people specific questions.

Are You Looking To Enter The Market?

The initial step is to reach us to talk about your monetary necessities. Then, we will go over your borrowing capacity with you and get you pre-approved for a house loan. Then, when you find your dream property, you will be prepared to negotiate with confidence. Do not hesitate to get in touch with us right away!

Contact (02) 8084 2764 for more information.

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Transferring property to a family member can be a complex process, but with the right guidance, it can be done smoothly. Whether you’re gifting property to your child, transferring it as part of a divorce settlement, or simply want to ensure that your property remains within the family, understanding the legalities is crucial. This guide will walk you through the steps involved in transferring property to a family member in Australia, with a specific focus on engaging Property Lawyers Sydney to assist in the process.

Understanding Property Transfer

Property transfer involves changing the ownership of a property from one person to another. In Australia, this process is governed by state and territory laws, which means the specifics can vary depending on where the property is located. For example, transferring property in New South Wales will have different requirements compared to other states.

Why Transfer Property to a Family Member?

There are various reasons why someone might want to transfer property to a family member:

1. Gifting: Parents might want to gift property to their children as a form of early inheritance.
2. Divorce Settlements: Property transfer may be part of a divorce settlement agreement.
3. Estate Planning: Ensuring that property remains within the family after the owner’s death.
4. Tax Benefits: In some cases, transferring property can offer tax benefits.

Steps to Transfer Property to a Family Member

1. Seek Legal Advice

The first and most crucial step is to seek legal advice. Property Lawyers Sydney can provide expert guidance tailored to your specific situation. They can help you understand the legal implications, potential tax consequences, and ensure that the transfer complies with all legal requirements.

2. Property Valuation

Before transferring property, it’s essential to obtain an accurate valuation. This ensures that the property is being transferred at a fair market value, which is important for tax purposes. A professional valuer can provide a comprehensive report on the property’s current market value.

3. Prepare the Transfer Documentation

Proper documentation is essential for a smooth property transfer. This includes:

• Transfer of Land Form: This form must be completed and lodged with the relevant state or territory land registry.
• Contract of Sale: Even if no money changes hands, a contract of sale is often required to outline the terms of the transfer.
• Stamp Duty Form: Depending on the state, you may need to complete a form to determine the stamp duty payable, if any.

4. Stamp Duty Considerations

Stamp duty is a significant consideration in property transfers. In some cases, transferring property to a family member may be exempt from stamp duty, but this depends on the specific circumstances and state laws. Property Lawyers Sydney can advise you on any exemptions or concessions available.

5. Lodging the Documents

Once all the necessary documents are prepared, they must be lodged with the relevant state or territory land registry. This step officially records the transfer of ownership.

6. Update the Title Deed

After lodging the documents, the title deed will be updated to reflect the new ownership. This is a crucial step in ensuring that the transfer is legally recognized.

7. Notify Relevant Parties

It’s important to notify any relevant parties of the change in ownership. This might include local councils, utility providers, and financial institutions.

Frequently Asked Questions

1. Do I need a lawyer to transfer property to a family member?

Yes, it is highly recommended to engage Property Lawyers Sydney to ensure the transfer complies with all legal requirements and to avoid potential legal and tax issues.

2. Is stamp duty payable on property transfers between family members?

Stamp duty may be payable depending on the state and the specific circumstances of the transfer. There are some exemptions and concessions available, which a property lawyer can help you navigate.

3. What documents are required for property transfer?

Key documents include the Transfer of Land Form, Contract of Sale, and potentially a Stamp Duty Form. Additional documentation may be required depending on the state and the nature of the transfer.

4. How long does the property transfer process take?

The timeframe can vary depending on the complexity of the transfer and the efficiency of the relevant land registry office. Generally, it can take a few weeks to a few months.

5. Can I transfer property to a family member as a gift?

Yes, property can be transferred as a gift. However, it’s important to consider the tax implications and ensure all legal documentation is correctly completed.

6. Will transferring property affect my taxes?

Transferring property can have significant tax implications, including capital gains tax and stamp duty. Seeking advice from Property Lawyers Sydney can help you understand and manage these implications.

7. Do I need a property valuation for the transfer?

Yes, obtaining a professional property valuation is important to ensure the property is transferred at a fair market value, which is essential for tax purposes.

8. What happens if the property is mortgaged?

If the property is mortgaged, you will need to obtain consent from the lender before proceeding with the transfer. The lender may have additional requirements that need to be fulfilled.

Conclusion

Transferring property to a family member involves several legal and financial considerations. By engaging experienced Property Lawyers Sydney, you can ensure that the process is handled efficiently and that all legal requirements are met. Whether you are transferring property as a gift, part of a divorce settlement, or for estate planning purposes, professional legal advice is essential to navigate the complexities and ensure a smooth transfer. Call (02) 8084 2764 for the best Property Lawyers in Sydney.