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Ask Leon Your Own Question
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 44178
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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My company has recently entered voluntry administration. I

Customer Question

Hi, my company has recently entered voluntry administration. I have 2 children and have seperated from a defacto relationship. I have a house which i had built before knowing her and a business that was thriving until a stint of bad debt destroyed cashflow.
Summarising my situation;
living together in a defacto relationship for 6 years
we have 2 children. 2yrs and 5yrs
i moved out of family home for 5 months now she has moved out with children
she removed basically every item from the house and left it bare.
I am the managing director of a company in administration.
i will be left with debt after sale of all assets approx 200k
I/my company would contribute a wage to my partner of approx 55k per year.
free phone, i would pay the mortgage, utilities and all maintence on home.
she would part pay for kids schooling and food with her wage.she engaged lawyers where i intercepted mail which was demanding i release all bank accounts etc
she was launching a caviet to stop me selling properties (this has not been done yet)
I have no secret accounts. I had to put the house on the market because of pressures from the bank. it has not sold yet, i will have no control of this asset anyway.
i am paying maintenence although i have no income at present.
my question is, can she go ahead stop the sale, take half only to leave me more indebted to my creditors?
can i pass some of my debt onto her?
thank you Tim Crawford
Submitted: 11 months ago.
Category: Australia Law
Customer: replied 11 months ago.
if you would like to see documentation from her solicitor please ask.
Expert:  Leon replied 11 months ago.

Good Evening.

My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise but a guide to assist you.

How is the maintenance calculated? If you do not have any money you are not liable for child support. If you are paying her, there is no requirement unless you have court order.

She can seek a share of the house under the Family Law Act as it applies the same to Married and defacto couples.

Because there are 2 children she will get something but I cannot say how much

The law will apply the following 4 steps.

Step 1: Determine what the assets are and their value

This will include all assets and their value as at the day that you are dividing them. It does not matter whose name the assets are in, they will form part of the matrimonial pool. Superannuation entitlements are also included.

Step 2: Determine what contributions you and your Husband made towards the assets.

This includes a consideration of both financial and non-financial contributions. Consideration is given to what assets each of you brought into the marriage as well. The weight given to your initial contribution will be dependent upon the length of your relationship. The longer the relationship the less weight given to the initial contribution.

Step 3: What are each of your future needs.

Consideration is given to your respective ages, your comparitive income earning capacity as well as other factors.

IF these things don't balance equally for each spouse, then an adjustment is made in the percentages.

Step 4: Make an order that is just and equitable between both spouses

The house can be sold but the money received will be held in trust after payment of the mortgage etc.

You cannot pass on dent to her as it is in your name and not hers.

If she is a borrower then she is also liable and the debt is half hers.

What you are asked for is disclosure. This is normal and you have the same right to ask form her.

Customer: replied 11 months ago.
Hi Leon, are you certain i cannot pass on debt? how can she be liable to take half of everything but not liable if the liabilities out weigh the assets?
Expert:  Leon replied 11 months ago.

Good Morning.


The debt will bee deducted from the assets and it is the net amount that is split.

She would not get a share of the gross and leave you the debt.

The court and the law will only split what is there after the debts are deducted.

bit if there is more debt than assets and the debt is in your name you cannot give her part of it.

Customer: replied 11 months ago.
i will call child support first thing Monday.
Expert:  Leon replied 11 months ago.

Good Evening.

Unless there is an assessment by child support there is nothing to pay.
You can reach your own agreement but if you are not earning any income you do not have to pay.

The following link will assist you to see what you would be liable for.

All the best and good luck. If there is nothing further

thank you for using my services.

If I have missed anything, or you have any further questions please let me know

If there is anything else in the future please do not hesitate to ask.

Please do not forget to leave positive feedback.



Customer: replied 11 months ago.
can you explain a little more with what will happen, maybe an example?
Customer: replied 11 months ago.
but the assets are in my name and ive been paying her up to $55k a year. my income last year was 29k
Expert:  Leon replied 11 months ago.

Its not that easy.

But generally

You both disclose what you own and what it is worth. You then disclose the debts. The debts are deducted from the assets.

What is left is added together and that is the pool of assets that will be divided.

The law then determines based on need etc how much you each get. The amount is from the net amount of both your assets less both your debts.

Expert:  Leon replied 11 months ago.

You are in a relationship.

It is all part of the pool.

Also she should have a bank account and also superannuation as she was an employee.

It is not just physical assets it included bank accounts shares everything.

Customer: replied 11 months ago.
ok so if my debt is 1000 dollars and my assets are 800 dollars what will happen with the 200 dollars owed? they are in my name so i have to pay it?
Expert:  Leon replied 11 months ago.

Good evening.

What are her assets and debts?