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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 44386
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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I have conducted a development over the previous 5 years

Customer Question

Hi
JA: Hi. What is your issue regarding?
Customer: I have conducted a development over the previous 5 years with a partner. Our company bought 2 lots, and my partner bought the third for the company through FHOG. Over the next 5 years we conducted our project and have now sold 7 units, 3 of which were physically on the rear of the house he personally owned add it was never transferred to the company.
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: Could this property that he owned be considered company property, add he is now suing me to receive the funds from the post of land that was in his name. All previous costs and revenues were split 50/50 as that was the ownership of the unit trust structure. We are on NSW
JA: Has anything been filed or reported?
Customer: Notified me off his intent to start proceedings for up to $750k
JA: Anything else you want the lawyer to know before I connect you?
Customer: Well, are all times ihad considered the house as company owned, everything was split 50/50, now because he didn't make enough profit he wants the revenue prob from the fact it was in his name. Quite complicated, but has to do with intention of ownership and 5 years of operating
Submitted: 7 months ago.
Category: Australia Law
Expert:  Leon replied 7 months ago.

My name is ***** ***** I am a NSW Solicitor. I will do my best to assist you with your question.

Expert:  Leon replied 7 months ago.

If he owns it in his name it is his not the company's.

If you and him were directors of the company and share holders then all of this is part of any property split

I assume you are talking about a family law split and in that case 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

I hope this makes sense and is of assistance. 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.

Regards

Leon

Customer: replied 7 months ago.
Hi Leon
Sorry you have missed the point entirely.
Property development only - business partners.
For one reason or another my ex partner is extremely unhappy with the total returns. The revenue from one remaining unit out of 7 new units and 2 existing houses is remaining in our solicitors account pending agreement to split. This was supposed to be 50/50 as per unit holdings in trust, however my ex partner is using the fact that the title of 1 house was in his name to pursue extra monies.
Over 5 years all expenses and revenues from that house were paid by the company. (ie 50/50 from both partners). I have documented evidence that the company paid the deposit for the house, all solicitors fees, took the rental income and paid all costs. After a renovation, refinance was split back to both parties. After a subdivision of the front of the land with house on it, the revenue from sale of the house went back to the company. It is the rear portion of the subdivided block, that portions of 3 new units sit upon, that he now wants compensation for.
Very complicated, but I just need a view point on ownership. Can ownership be decided by 5 years of previous actions and history of the Company paying for everything (including mortgage).
Or is ownership plain and simple the name on the title?? The concept of ownership is the critical thing here.
Thanks
Expert:  Leon replied 7 months ago.

Good Afternoon

Any money that the company has earned is to be split as er the share holdings you each hold.

I cannot see how he wants compensation. If all the land was owned by the company it is the companies money and it is distributed to the share holders.

If he owned the land he is entitled to the value of the land. If the company paid for the subdivision then it should be paid for that out of the proceeds.