Property settlement involving multiple properties can create a complex legal landscape, particularly when investment holdings and third-party interests are involved. This case study outlines how Dominique Markwort, Senior Associate at Seton Family Lawyers, navigated a multi-property dispute with competing positions, significant income disparity and capital gains tax considerations, guiding our client toward a clear and fair resolution.
The case
This family law matter involved a property matter in which Dominique acted for the husband. There was a dispute between parties around four properties, including three investment properties, one of which involved partial ownership by a third party. Due to the investment properties, there were complex capital gains tax implications that needed to be considered in any settlement.
At the time of trial, the parties held significantly different positions.
The wife was earning an income more than six times greater than the husband’s, and this income was the basis upon which the parties were able to acquire wealth, by way of real property, during their marriage.
In the proceedings, the third-party owner was adopting the same position as the wife.
The process
The husband attempted to engage in sensible discussions, including attendance at alternative dispute resolution, to try and resolve the dispute without the need to proceed to trial. Unfortunately, the wife was unwilling to engage in discussions, which led to the matter proceeding to trial.
Offers of settlement had also been put forward by the husband on a final basis to settle the proceedings. These were less than the outcome he ultimately achieved. In clear terms, he was able to obtain a better outcome on the first day of trial by consent, an offer that could have been accepted by the wife many months prior.
“Although parties can often be entrenched in high conflict and complex litigation, it is important that there is always an emphasis on dispute resolution – even on the day of trial. If parties can reach an agreement, even on the “doorsteps” of court, this enables parties to have control of the process and certainty of outcomes. It is important as a solicitor to always be open to negotiations and to have the various options available to your client at the forefront of your mind.”
– Dominique Markwort, Senior Associate
The outcome
The matter was resolved on the first day of trial by agreement, following extensive negotiations. This included drafting detailed orders that enabled the capital gains tax to be paid after the sale of each property and a formula to be used to calculate the sums to be paid. This ensured the correct amounts were paid to the applicable parties.
Although the wife had made significant financial contributions to the acquisition, maintenance and improvement of the asset pool, the husband was able to demonstrate he too had made financial contributions by working full-time and his contributions as a homemaker. Overall, the husband received a 45% adjustment in his favour and was able to receive an alteration of property interests that would enable him to purchase another property if he sought to do so. He also received a significant portion of the wife’s superannuation entitlements to be used later in life.
Support after separation
If you are facing a complex property settlement or are uncertain about your financial position after separation, our team can guide you through the process and help you understand your options. At Seton Family Lawyers, our mission is to give you the security, certainty and independence to better your future. Contact us today to discuss how we can support you through your property settlement and family law matters.
