A recent Family Court case highlights the issue of whether it's possible to legally prevent a spouse blowing the family's money before the property settlement comes through.
A wife claimed her estranged husband spent $177,000 at strip clubs in the four months after their marriage broke up, just part of the $420,000 she alleged he had "recklessly" spent over the previous 12 months.
The court heard the wife hadn't worked since 2013 and struggled to look after their three children aged under 12. School fees were overdue, she owed taxes and needed money for dental work and psychiatric treatment stemming from her husband's alleged actions.
The court heard the couple had net assets of $3 million, but the wife feared her estranged husband was trying to spend their assets before their property settlement on separation.
So what can the law do to help? Solicitor Ruth Whisker of Stacks Law Firm says it's worth contacting a lawyer experienced in family law to see what can be done to protect the family assets.
"There are legal measures that can be taken to ensure that children and the welfare of dependents such as a non-working spouse are provided for when assets are to be divided by a couple who are separating," Ms Whisker said.
"The law can impose injunctions on the disposal of family assets where a couple are separating before a property settlement is reached, but a court would have to be satisfied there will be a depletion of assets if the injunction isn't granted."
That's what happened in this case. The judge was satisfied the wife was currently unable to support herself adequately, but would eventually have "a significant claim" on the couple's $3 million estate.
"I am satisfied that there is a risk the husband may dispose of further assets (in the absence of) ... these injunctions,'' the judge said.
The judge ordered the husband pay spousal maintenance, child support, home mortgage, rates, insurance, house repairs as well as dental and medical treatment of his family.
The judge also made an injunction preventing the husband disposing of any of the family assets or withdrawing cash without his wife's written permission.
"Every case is different and this sort of court decision wouldn't happen for every wife who claims her husband is spending their money in strip clubs, gambling, fast cars or other recreational activities," Ms Whisker said.
"However if the couple are heading towards a separation it's worth consulting a legal expert to find out what can be done to preserve the family assets."
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
