How to push through if your ex is delaying a property settlement

Property settlement is one of the most important parts of any separation or divorce. And it’s hard to move on from a relationship without it. So delays from an ex can be frustrating, but they don’t have to derail your separation completely.

There are things you can do to take control of the situation, and keep things moving forward.

Here’s what to do if your ex is delaying property settlement. 

Why is my ex-wife or ex-husband delaying property settlement?

Whether it’s an ex-wife or an ex-husband delaying property settlement, its typically for similar reasons, and usually that revolves around getting more financial benefits for themselves. Here are some reasons your ex might delay property settlement.

• You disagree over the division of the assets.
• They hope the delay might put them in a better negotiating position.
• They aren’t prepared emotionally.
• They want to retain control of certain assets, such as the family home, where they can live rent-free until settlement. 
• They’re anticipating you receiving an inheritance or some other windfall, and they want it to form part of the marital pool.
• They believe you’re on good terms, won’t need a court-ordered property settlement and so don’t think there’s any rush.
• They’re incurring debts, and they want them to form part of the marital property, so you have to take on a share.
• They’re validly waiting for valuations on assets so they can disclose this to the courts.
• They are using the process as systemic abuse.

How an ex-partner might delay property settlement

For a property settlement to happen, both parties have to do their part. Both are required to disclose all their relevant financial information, including income, interests, assets and debts. This is required by law (duty of disclosure) and it’s also how a fair settlement is possible.

But if your ex is being obstructive, they might take steps to try to delay. Here’s how they might do that.

Not engaging

One of the easiest ways of delaying is by simply not engaging or responding. Your ex may ignore communications, fail to schedule meetings or push back mediation sessions, or they may simply refuse to consider offers.

Hiding assets

Hiding assets is illegal and can lead to stiff penalties. But unfortunately, people often think they can get away with doing this. Some techniques that someone could try is to:

• Undervalue property. Property pools can include different types of assets, including jewellery, artwork, coins or other collectibles. By undervaluing these assets, your ex may think they can keep some of the value for themselves alone.
• Delay income or inheritances. Your ex might be expecting a big income payout, such as a bonus or share distribution, which they might choose to put off. They may do the same thing with an expected inheritance. 
• Use anonymous cryptocurrencies. Digital currencies are anonymous and a relative new innovation without strong regulation. Because of that, they’re a good way for someone to hide their money.
• Transferring assets. This is the original and most well-known way that people ‘hide’ their money and assets. They might ‘give’ some to friends or family, or they might try to put money in hidden accounts.
• Creating false debts. One way that some people try to hide money is by creating ‘debts’ that don’t really exist. These will reduce their asset pool and allow them to keep more of the money.

Missing mortgage payments

Missed mortgage payments can significantly delay settlement when the property needs to be sold. That’s because it can cause issues for qualifying for financing if one partner wants to buy out the other.

Not giving full and frank disclosure

If your ex decides not to disclose all of their assets, despite the requirement for full and frank disclosure, this can make it difficult to get a real understanding of the property pool. And searching this out can significantly delay settlement.

Continuous negotiation

One of the ways that one person might delay a property settlement is by continually negotiating minor details in the settlement. This back and forth can drag out the timeline.

Filing unnecessary paperwork

Another way that someone can delay is by filing unnecessary motions or applications. This forces the entire settlement to stop and wait for those to be decided by the Court, which causes further delays.

What are the disadvantages of property settlement being delayed?

While there might be advantages of a property settlement delay for one party, there are also disadvantages that could occur. And the longer you delay your property settlement, the more disadvantages might arise.

More opportunity for your ex’s accrued debts to be shared with you 

Your assets are valued at the time of the settlement, not at the time of your separation. That means that the longer the settlement is delayed, the more chance there is that your ex could accrue debts that you might have to take on.

More opportunity you’ll have to share your post-separation income and assets with your ex

Just as a delay might give your ex more of a chance to pass their debts on to you, it also allows more opportunity for your post-separation income and assets to go to your ex as part of the shared property pool. You might have a business that grows, receive an inheritance or even purchase another property, and of course your superannuation will likely continue to grow. All of these could become part of the asset pool.

Your relationship could sour

Even if you have an amicable relationship when you first separate, over time this could sour, which could lead to more difficulties. The longer your property settlement is delayed, the more likely this is to happen.

Your ex could inherit

If the worst were to happen, and you were to pass away prior to your settlement being finalised, your ex could inherit. If you’re separating, update your will as soon as possible, but as a second step, try to settle your property as soon as possible. If your estate was to be settled under family provision legislation, they could still inherit.  

Tips to push through a property settlement

If your ex simply won’t settle, there are a few things you can do to help push through a property settlement.

1. Try limited negotiate.

Your first step is to try to negotiate with your ex but set time deadlines.. This is the cheapest and best way to get a settlement. But if your ex is already being obstructive, this may not work.

2. Use mediation.

Mediation is the next step, and if you can get your ex to attend, then a third party can help facilitate a fair agreement.

3. File an application with the Court.

If mediation doesn’t work, then you can file a formal application to the Family Court to seek a property settlement.

4. Prepare to go to Court.

Once you file an application, you’re going to need to prepare to Court. Have all your documents in order and things will go much more smoothly. Once in the system, you can enforce non compliance or the matter can proceed undefended.

5. Get help from a family lawyer.

An expert family lawyer can help give you clear guidance and strategies to compel your ex to get to finality.

Dealing with delays in property settlement can be draining—both emotionally and financially. But you’re not alone. There are clear steps you can use to move forward. And our team can help.

Is your ex-husband or wife delaying property settlement? If you’re in the midst of property settlement and have any questions about the process in Australia, reach out. You can request a call back via the form below or feel free to call us directly.