Property settlements: the lesson about formalising your agreement from Radney & Radney (2022)

The recent case of Radney & Radney (2022) FedCFamC2F 53 illustrates the need for separating couples to formalise a property settlement- in this case, before a blended family scenario altered the status quo many years later.

The couple had been separated over 30 years ago and divorced over 20 years ago in 2000. After separation, the wife lived in the matrimonial home, which remained in joint (tenancy) ownership. There was no formal property settlement, and in 2019 the former husband, in a new relationship, severed the joint tenancy.

The following year, his ex-wife applied to the Court for a property settlement, requesting a transfer of title to the house into her sole name on the grounds that she would otherwise suffer hardship. Before this application could be heard, the husband unexpectedly died, and it had to be dismissed, though had he survived, it might well have succeeded.

What does it mean?

Separating parties may reach an agreement just between themselves, believing this to be a cost-effective solution. The future, however, is unpredictable. Even if there has been a long-standing agreement, including assets divided between the parties, the risk of future changes of circumstances and minds remains.

Formalisation of their agreement by way of a consent order or financial settlement can prevent unanticipated litigation possibly many years ‘down the track’.

Contact our Property Settlement Family Lawyers based in Sydney, NSW

If you are considering separating or have already done so, Szabo & Associates Solicitors can help you clarify your options and the best way forward. Please contact us on 02 9281 5088 or complete the online contact form.