The Costs of Delay – Acting Slowly If Your Partner Is Moving Money
It is not uncommon for people to think that the word ‘lawyer’ and the word ‘expensive’ go hand in hand. That is why people can be reluctant to reach out to us in a period of uncertainty, such as their separation.
While we understand that it can be considered a significant outlay when there is still uncertainty about the future of a relationship, there are many times that a delay in reaching out to expert family lawyers, in the hope of saving money, can actually cost people money in the long term. One of these times can be if your partner is moving money or assets around, spending up big or selling things.
Let’s use a case study to explain our point:
Amy and Adam have separated after a long marriage where they had fairly traditional roles. Amy was and is the best mum, cook and homemaker in the world and Adam is a hard-working provider. Amy, as mum to 4 kids, basically has 10 jobs and is way too busy to look after any of the family finances; this is Adam’s job and she trusts him. Adam has done a great job providing over the years and looking after the family finances and the family is in a strong financial position with a home, a few investment properties and a family business.
After separation, Amy and Adam continue in their roles and they have a fairly amicable relationship. Adam continues to provide for Amy and the children and keeps telling Amy that he will “look after them”. After a while Adam starts to ask Amy to “sign some documents”. When Amy asks what they are for, Adam tells Amy not to worry about it, he is just restructuring some things. Amy thinks it is a little weird, but Adam has always done such a good job, she puts it out of her mind.
Some months later, Amy happens across some documents that indicate that they sold an investment property (unencumbered mind you) a few months earlier. Amy has no idea about this, how could this have happened without her input? Then she remembers those documents she signed. Amy questions Adam about it and he confesses that he sold the property and has spent almost all of the funds and he is planning on selling another property soon. Amy is so concerned about this she goes and sees a lawyer straight away and ends up seeking the Court’s help to make sure the rest of the assets are protected.
So, the point? Listen to your gut. If it feels a little bit off and a little bit different, seek advice early. If Amy had listened to her gut at the time, she might have gone and got some advice early and understood what should and should not happen after separation with assets and taken some steps to ensure nothing was being sold or wasted.
Now Amy has sought the urgent assistance of the Court and this has come at a cost that could have been avoided or lessened. Not to mention what happens with the money Adam has spent which can be difficult to recover.
We understand that engaging a lawyer is a difficult and stressful decision. Our sole focus is providing the best quality advice to our clients to empower them to make decisions about their future. We often see many clients where if they had have come to us earlier, they would have had more options available to them and could save significant costs because the situation isn’t so out of hand.
It is also the case that when clients do engage us, it remains confidential and no action needs to be taken to let the ex (or soon to be ex) know that lawyers are involved until you are ready to do so.
Our excellent and experienced team has availability to see you as soon as possible and can usually see you within a day or so of booking. You can book a free discovery call here or contact us at the office on (02) 8379 1835.
We look forward to helping you.
Author: Kalisha Martin, Senior Lawyer at Lagom Family Law
** The information contained in this blog is general and does not constitute legal advice on your particular maner. You should consult a lawyer specialising in family law for independent legal advice regarding your particular circumstances **
Lagom is Swedish and means not too little, not too much, just right. This is our philosophy of practice as we aim to provide tailored advice specific for your individual needs - that’s just right for you!
Lagom Family Law is a boutique legal practice lead by Principal Lichee Hogland who strives to achieve the best possible outcome for her clients whilst being approachable and respectful.