Involvement of Third Parties such as Banks or Creditors in Property Settlement
Third parties including banks and other creditors (a person or entity you owe money to) are able to become a party to a property settlement dispute between couples.
A Bank or a creditor (someone you owe money to) might want to become involved in a property settlement to protect their own financial interest and try to recover some or all of the money owed to them.
If this happens, then a Court has to consider, not only how to divide property between you and your former partner, but also, whether to make orders in favour of the third party as well.
There are quite a few situations when someone else (a third party) can be included in the property settlement of a former couple.
The main circumstances in which a third party may become involved in the property settlement of a couple are:
- To restrain a spouse from taking certain action that may defeat or affect the other spouse’s entitlements.
- To stop a bank or financial institution selling a property owned by one or both of the parties.
- If a third party is owed money by the couple (or one of them).
- An asset legally owned by a third party should be the property of either the couple or one of them.
- One spouse seeks to have the Court set aside a transaction which occurred to defeat a Court Order.
- To adjust the rights of a Creditor of one or both of the parties.
- To Order a third party to assist in the carrying out the property settlement of the parties.
- If there are insufficient assets in the property pool to carry out the property division without including assets (part of the pool) held by a third party.
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Other Pages in the Property Settlement Section
- What does Property Settlement & Division involve
- How do I work out how much I will get or pay – How is Property Division Calculated: The 4 Steps
- Do I have to document your Property Settlement Agreement
- Risks of not documenting your Property Settlement
- How do you document your Property Settlement
- Consent Orders or BFA to document Property Settlement
- Property which must be divided
- Your Company & Property Settlement
- Your Business & Property Settlement
- Trusts in a Property Settlement
- Repaying Loans or Gifts from relatives made during Relationship
- Property Settlement & Superannuation Splits
- Stamp Duty, Capitals Gains Tax & Property Settlement
- Bankrupt Spouse in Property Settlement
- Third Parties (Banks, Creditors, Family) in Property Settlement
- Property Settlement Time Limits