Alison and Jillian Barrett have revealed what you could do if you discover your ex-partner has siphoned off money from a shared account. (Source: Getty/Facebook)
Welcome to Yahoo Finance’s legal column where lawyers Alison and Jillian Barrett from Maurice Blackburn tackle problems everyday Aussies face — whether it be consumer, property, money matters impacting relationships or work. This week, a woman is confused about her rights after a break up.
Question
I recently broke up with my partner and have been left with a bit of a financial nightmare.
We had been putting in to save for a home, and he was someone I really thought I’d spend the rest of my life with. We were putting in different amounts, and I know I was stupid for letting him have the account in his name.
But I just didn’t think of him as the type of person to take the money if we split, and that’s exactly what happened.
He won’t even tell me how much was in there. I did some calculations and think I put in about $12,000 over the last few years.
I am embarrassed to tell my family or friends because I never thought I’d be “that woman” but felt it was easier to transfer into an account I couldn’t see, so I wouldn’t be tempted to pull it out.
I don’t even know who I can lean on to work out how to get that money back. Or if I had transferred it with nothing written about how it was “ours” that I’ve really just given it away. What can I do?
Answer
We’re sorry you’re going through this. Please don’t be embarrassed to tell your friends and family, as they will be an important support for you. They may even be able to provide evidence that you and he had discussed your joint financial goal of owning a home and that you were saving money into a joint account.
Just because the account is held solely in your ex-partner’s name, it doesn’t mean you’re out of options.
Firstly, consider if you meet the definition of a de facto couple. Generally, to apply for financial orders after a de facto relationship breakdown, you must:
Have been in the relationship for at least 2 years,
Have a child together, or
Have made significant contributions and face serious injustice without a court order.
If your relationship qualifies as a de facto relationship then you may be eligible for a property settlement. This includes money held in bank accounts, even if they are in one partner’s name.
To make a property settlement, you’ll need to apply for a financial order through the Family Court within two years of the relationship ending.
Even without a contract, you can pursue recovery through civil claims such as a minor debt claim (also called a minor case claim). You can send a letter of demand to your ex, setting out the amount you believe you are owed, asking for it to be repaid within a certain time, and if it isn’t, that you’ll take legal action.
Do you have a matter you want resolved? Contact yahoo.finance.au@yahooinc.com
Alison and Jillian Barrett are Principal Lawyers at Australia’s leading plaintiff law firm, Maurice Blackburn. · William Gordon Photography
If there is no response to your letter of demand, you can lodge a claim in your state’s or territory’s small claims court, or civil and administrative tribunal.
There are strict time limits for recovering a debt, so if you decide to take these formal steps, you should not delay in doing so.
Regardless of the legal pathway, documentation is key.
Gather bank statements showing your transfers, any messages or emails discussing the savings plan, and anything that shows your intent.
Evidence from friends and family that confirms the joint account and the intention of it should also be obtained. All of this evidence can help establish that the money was intended to be part of a shared financial future.
It’s also wise to speak to a lawyer who specialises in family law and debt recovery. They can help you assess your situation and guide you through the process.
This legal information is general in nature and should not be regarded as specific legal advice. If you need legal advice, you should consult a solicitor.
Get the latest Yahoo Finance news – follow us on Facebook, LinkedIn and Instagram.