14 February 2020

The great divide

Family Law
Federal

Asked

Proposed property settlement - Joint tenancies and survivorship

The parties to a property settlement are elderly and have several joint tenancy properties.

As my client is not in great health, should I apply to have the joint tenancies severed? Or will the fact that there are family law proceedings on foot be enough to stop the transfer to the surviving owner in the event my client passes away?

Answered

Thank you for the question.

If the client dies without severing the joint tenancies, the fact that proceedings are on foot would not be enough to prevent ownership passing to the surviving spouse pursuant to the laws of survivorship. However, the property proceedings may be continued by the legal personal representative of a deceased party pursuant to s 79(8) of the Family Law Act.

If there are proceedings on foot, severing the joint tenancy can still be done but it is not vital.

Regards

Mentor