In this blog/video we discuss a hack on how to save thousands, even tens of thousands of dollars on Transfer Duty for Queensland property! This week is all about property + divorce.

We discuss Binding Financal Agreements (BFA's), Court Orders, and other pathways to manage divorce / de facto breakups where Queensland Property is involved. 

Prefer to watch/listen? Click here to consume this content via YouTube!

Hi everybody - George Sourris, Empire Legal.

Today's topic: What Happens to Property in a Divorce in Queensland? We reveal a hack to save THOUSANDS.

We are not family lawyers at Empire Legal, but we do work closely with family lawyers to help transact properties that form part of a separation! Divorce, as we all know, is a challenging and emotionally charged experience, and when property ownership is involved, it can be even more complex. In Queensland, understanding your rights, responsibilities and the legal process around property division is essential for achieving a fair outcome.

Okay, so who owns the property?

In Queensland the concept of property ownership in a divorce is not as simple as who is on Title. The Family Law Act of 1975 governs property settlements and all assets, whether owned jointly or individually, and they can all be considered in a settlement. 

So, what constitutes "property"?

Well, this includes: real estate, bank accounts, shares, superannuation, businesses, vehicles, even liabilities like mortgages and credit cards.  When a marriage or defacto relationship ends, a comprehensive assessment of all assets defining all different items is usually completed by family lawyers.

Our firm specialises in the transfer of real property, so real estate.

 The process of property settlement. 

Alright, so a property settlement can be negotiated through mutual agreement, mediation or as a last resort court proceedings.

In Queensland, you've got 12 months from the date of your divorce or 2 years from the end of your defacto relationship to initiate property settlement proceedings.

If you miss these timeframes, you have to apply to get permission from the court to file your property application. Alright, so there's four main parts that occur. 

Number 1: identify and value the assets. Both parties must fully disclose their assets, liabilities, and financial resources. 

Number 2: the asset contributions. The court considers each party's financial, non-financial, and homemaker contributions. 

Number 3: considering future needs. Factors such as age, health, income, capacity and responsibilities for children are evaluated; and 

Number 4: achieving a fair outcome. The final division must be just an equitable in the eyes of the court. 

Alright, so you might have heard about a Binding Financial Agreement, or a consent order.

Let's quickly unpack them. 

So, a Binding Financial Agreement (BFA) is a private agreement between both parties that outline how the property will be divided. BFA's are enforceable, but can be challenged if issues like fraud, undue influence, or non-disclosures arise.

Usually a couple that are still on talking terms may opt to get a BFA, to save on family lawyer fees, whilst still being able to gain benefit of transfer duty savings and finality.  We'll explain further below. Keep in mind here that each party should be 100% comfortable with the BFA, as its intention is to be binding. So, if you're not sure or you're not comfortable, we suggest you contact a family lawyer before you sign.

Alternatively, consent orders are formal court approved agreements that carry the weight of a court order. They are generally more secure and they're scrutinised for fairness by the  court before approval.

All right, George. So why are you telling me all this stuff?

Transfer duty savings. A significant benefit of formalising property settlements through a BFA or a consent order, is the potential for transfer duty exemptions. In Queensland if your property is transferred between separating spouses due to a court order or an approved BFA, transfer duty may not apply, resulting in substantial savings. 

Okay, here's a quick real life example. Let's just say a couple have a property for $1.5 million, and it's owned 50/50, and one party's buying at the other as part of a BFA or consent order. 

The savings on the half share transfer of transfer duty alone is $23,975 for the half share, so the person buying the other one out. Keep in mind, you'd need to deduct the cost of the BFA or the consent order. However, the costs associated with either of these will be significantly cheaper than paying the transfer duty.

So as Queensland Property Experts, we can assist you with your property transfer. We work alongside the family lawyers and the professionals who can assist with BFA's. If you need recommendations, just get in touch with us and we'll be more than happy to put you in touch with the people that we trust to help you. 

All right, so whilst you can negotiate a property settlement without legal assistance in a divorce or de facto breakup, seeking professional advice can help you understand your entitlements, navigate complex legal principles, and protect your interests. We suggest that parties that are going through separations get independent legal advice regardless, to make sure their interests are protected. 

Navigating property settlements during a divorce or a breakup is a significant life decision. Seeking advice from experienced property lawyers can help.   If you need guidance, reach out to our team for a confidential, obligation free, knowledgeable, professional support. 

Thanks guys. Hopefully you learnt a thing or two today! Anyone going through this shocking time in their life, a divorce or a de facto split up - you need to protect yourself. Don't just willy-nilly sign a BFA or a consent order because you may not be able to get that reversed. 

If you know anyone that is involved in Queensland property, or is just genuinely curious - send them our page, send them our channel. It's all free content. We just want to help you be armed with the tools to make good decisions. Check out our website for more blogs. We've got over 100! 

Guys, that's it for this week. Thank you so much. We've just hit 780 followers on our YouTube. As you know, our goal is 1,000. This is free content. Please share it with people. Subscribe. Helps us find more people to help. Obviously, Empire Legal, Conveyancing, Queensland wide.

It's all we do. We want to help you. If you've been listening to us for a while, but you haven't made contact, please do! We want to help people buy and sell homes and deliver QLD's best conveyancing experience. Thanks guys, we'll see you next week.

Subscribe to our YouTube and our blog. We want to get to 1,000 YouTube subscribers. We're only going to do that with your help. We're giving out this content for FREE to help you and your peers. Spread the good word of Empire Legal. We want to help everyone make property law in Queensland easy and smooth sailing. 

If you have any questions, you can email me: george@empirelegal.com.au. 

If this has added value, please share this blog / the YouTube video with a friend. 

Thanks for reading everybody. See you on the next one.

Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Brisbane, Queensland, Australia.

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Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice.