GETTING IT RIGHT

In this matter we acted for the wife in respect of property settlement. The terms of the property settlement were agreed to. Application for Consent Orders and Consent Orders were prepared and in due course the Consent Orders were made.

The Consent Orders provided that the former matrimonial home was to be sold the net proceeds of sale divided in accordance with the Consent Orders.

Subsequent to the Orders being made, and before the property was sold the husband decided he wanted to acquire the wife’s interest in the former matrimonial home. We advised our client that it would be necessary for her to enter into either Amended Consent Orders or a Financial Agreement.

The reason for this that when a transaction is completed pursuant to Orders made under the Family Law Act no stamp duty is payable on the transfer.

Notwithstanding that we wrote to the husband’s solicitors seeking their advices as to which way they wanted to proceed the husband decided, for whatever reason, that neither alternative was viable for him. Accordingly, the Consent Orders weren’t amended and a Financial Agreement wasn’t entered into.

The matter then proceeded as a normal conveyance.

However, at settlement the husband was required to pay stamp duty in excess of $10,000.00.

The lesson is make sure you dot the I’s and cross the T’s.