Michael Lynch Family Lawyers

THIS ISSUE - No. 242

  • Successful seminar series
  • Defacto break-ups and money – new seminar
  • Relationship counsellors – date claimer
  • What is duress?
  • Creditor tries to set aside property agreement
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Successful seminar series

Welcome to new readers of the Family Flyer who have joined after attending our recent public Seminar Series. The fortnightly Family e-flyer is now read by over 5,000 people.

The Seminar Series was well attended and provided a great opportunity to not only give practical legal information but to also answer lots of audience questions. It was nice to meet so many of you.

Defacto break-ups and money – new seminar

The answer to “What is a defacto relationship?” is rarely simple and the treatment of property in defacto relationships has always been a complex area.

Sadly, many people fall into the trap of taking second-hand advice and assuming their relationship status is defacto. This can have serious financial consequences.

To address the common questions about defacto relationships and property division we have created a new public seminar “Defacto break-ups and Money”

This FIRST TIME 1 hour presentation by Family Law expert, Belinda Jeffrey, will provide easy-to-understand answers to these common questions.

  • Brisbane:1.00pm – Tuesday, 31st March, 2015,The Sebel Suites, 95 Charlotte Street,Brisbane City

BOOK NOW! (Only $20 – payable at the door)

Phone 07 3221 4300 or email us at [email protected]

Relationship counsellors – date claimer

From time to time we present practical seminars specifically tailored to professionals in the Family Law field.

Our presentations to relationship counsellors have always been very popular.

Following a number of recent requests we have received from relationship counsellors for a practical “refresher” in Family Law, we are doing just that.

“Family Law – Explained” is a refresher and ONLY for counsellors and will be held 6pm – Tuesday, 5th May, Paddington (2 hours)

Note the date in your diary and look out for more information in coming flyers.

What is duress?

In a recent court case, the judge set aside a pre-nuptial agreement on the basis that the husband had exerted duress on the wife to make her sign the agreement.

The court found that the wife had “given in” to the husband and signed the pre-nuptial agreement as a result of the pressure placed on her by the combined effects of:-

  • Recently relocating interstate with young children at the request of the husband;
  • Lacking friends and family support upon relocating;
  • Trying to make her marriage work with a “fresh start” interstate;
Michael Lynch Family Lawyers
  • The husband’s constant theme that the parties risked losing their house if she did not sign the agreement and the wife having no independent source of income;
  • The many arguments over many months arising from the wife’s refusal to sign the agreement;
  • Being made to feel that she had no choice but to sign the agreement if she wanted to give the marriage another chance; and
  • Lending the husband most of the proceeds of the sale of her former home.

Negotiating agreements in relationships at any time is difficult, particularly after separation. Amidst all the pressures, it is important that agreements are not signed under duress. If you have any concerns about your situation, call us for a “fixed cost” appointment on ph: (07) 3221 4300.

Creditor tries to set aside property agreement

What happens if a creditor is “knocking at the door” and a separating couple complete a financial agreement between themselves to divide their property.

In a recent case a Judge had to decide if a third party creditor could apply to set aside a Binding Financial Agreement (“BFA”) entered into between a husband and wife.

The facts were:

  • The wife owned a property, subject to a mortgage.
  • The wife owed a judgment debt to a third party creditor, Ms B.

 

  • The wife entered into a BFA with the husband and pursuant to that agreement she transferred the property to him and he took on the mortgage.
  • A few months later the wife became bankrupt, so all of her assets and debts vested in her trustee in bankruptcy.
  • The third party, Ms B applied to the court, seeking to set aside the BFA and have the property (now owned by the husband) transferred to her, free of the mortgage.
  • Ms B alleged that the BFA had been entered into to defeat her interests as a creditor, and also that the wife had not had independent legal advice before signing the BFA so it was not binding.
  • Ms B’s application was responded to by the husband and the trustee in bankruptcy.

The Judge held that:

  • Ms B was a “creditor” for the purposes of the Family Law Act, so she was able to bring an application to the court.
  • Ms B could only rely on one ground – i.e. that the BFA had been entered into to defeat her interests.  A third party creditor cannot rely on the other grounds for setting aside agreements which are available to the parties to the agreement such as, lack of independent advice, non-disclosure, etc.
  • The BFA was not set aside on a “summary basis” due to the alleged lack of independent legal advice. The argument of intent to defeat Ms B’s interests and her seeking a new outcome, (not just a reversal of the house ownership) needed to go to a final hearing.
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