What Role Can a Caveat Play in Protecting an Interest in Property Before Finalising the Property Settlement?

Regrettably, not all separations proceed amicably before the property settlement. You may have shared a family home with your partner but, for various reasons, your name may not be on the property’s title, and this is concerning you.

What is a caveat?

A caveat is a legal notice on the title register that provides notice or a warning (caveat is Latin for ‘beware’) to anyone interested in buying a property that there is another interest, known as an equitable interest, in the property. This will prevent a sale or the registering of a mortgage from taking place.

Establishing equitable interest

Establishing whether or not you have an equitable interest requires careful consideration. This will probably involve any financial contributions made, such as maintenance or mortgage payments. Non-financial contributions, such as childcare, may also be relevant.

Are there any disadvantages of lodging a caveat?

A potential downside of lodging a caveat is that, if it later transpired that the caveat lacked merit, compensatory damages may need to be paid in respect of any financial loss incurred by the owner. Costs will be incurred if the named owner seeks to remove the caveat.

Contact our Family Law Lawyers in Sydney, NSW

If you have a property that is not registered in your name, it may become necessary to consider lodging a caveat. Alternatively, you may consider a caveat that has been lodged on your property is without merit. Either way, the family law experts at Szabo & Associates Solicitors can help you. Please call us on 02 9281 5088 or complete the online contact form.