Many Ipswich families own property overseas: a house in a home country, land inherited from parents, or an investment apartment bought before or during the relationship. When a marriage or de facto relationship ends, a common question is whether that property is part of the Australian property settlement, and how an Australian order can affect land in another country.
This guide explains how overseas property is treated under Australian family law, what you need to disclose, how it is valued, and the practical problems with enforcing orders abroad.
Need advice about your situation? Ipswich Family Lawyers can help with property settlements. Book a consultation or call (07) 3378 8500.
Key takeaway: Overseas property is part of the property pool in an Australian property settlement, just like property here. It must be disclosed, valued and taken into account, even if it is in only one person’s name or was inherited.
Is Overseas Property Included in an Australian Property Settlement?
Yes. When the Federal Circuit and Family Court of Australia deals with property after separation, it looks at all property of either partner, wherever it is in the world. A house in India, land in the Philippines or an apartment in the United Kingdom is treated the same way as a house in Ipswich.
The usual property division process applies: identify and value everything, look at each person’s financial and non-financial contributions, consider each person’s future needs, and make sure the overall result is just and equitable.
What About Property Owned Before the Relationship or Inherited?
Property brought into the relationship or inherited is not automatically excluded. It is still part of the pool, but the fact that one person contributed it is taken into account. Depending on how long the relationship lasted and what happened to the property, that person may keep more of its value. Every case is assessed on its own facts.
Disclosure: You Must Tell the Other Side About Overseas Assets
Both partners have a duty to give full and frank disclosure of their financial circumstances, and that includes assets outside Australia. Expect to provide:
- title documents or land registry records from the other country
- any recent valuations, rates notices or rental statements
- details of any loans secured over the property
- bank statements for overseas accounts that receive rent or pay expenses
Hiding overseas property is a serious mistake. If it comes to light later, the court can reopen a settlement and may make costs orders against the person who hid it.
Key takeaway: Not disclosing overseas property can lead to a settlement being set aside years later. Disclose everything at the start.
How Is Overseas Property Valued?
Valuing property in another country raises extra questions:
- Who values it: usually a qualified valuer in that country, agreed by both sides or appointed as a single expert.
- Currency: the value is converted into Australian dollars, and the exchange rate used can make a real difference.
- Costs of sale: local agent fees, taxes and legal costs in that country may be taken into account if the property will be sold.
- Restrictions: some countries limit who can own land or how sale proceeds can be sent overseas, which can affect what the property is really worth to each person.
Can an Australian Court Make Orders About Land Overseas?
An Australian court cannot directly change the title to land in another country. Instead, it makes orders that the owner must do something personally, such as sign a transfer, sell the property and pay part of the proceeds, or pay the other partner an amount that reflects its value.
If the owner lives in Australia, refusing to comply can lead to enforcement action here. If the owner lives overseas, enforcing the order may depend on the laws of that country. Because of this, settlements often leave the overseas property with the person who owns it and balance it against Australian assets such as the family home or superannuation.
What If Proceedings Have Started in Another Country?
Sometimes one partner starts divorce or property proceedings overseas. Courts in both countries may then need to decide which is the more appropriate place for the case. These questions can be decided quickly and the outcome can change what you receive, so get advice as soon as you learn about overseas proceedings. See also whether an overseas divorce is recognised in Australia.
Tax and Overseas Property After Separation
Transferring or selling overseas property can have tax consequences in Australia and in the other country, including capital gains tax. Australian residents are generally taxed on worldwide income and gains. Get advice from a tax adviser who understands both systems before you agree to sell or transfer.
Can a Prenup Cover Overseas Property?
Yes. A binding financial agreement can say what happens to property overseas if the relationship ends. If you or your partner own significant property abroad, it is worth also checking whether the agreement would be recognised in that country.
Frequently Asked Questions
My partner says the overseas house belongs to their family. Is it still in the pool?
It depends on who legally and beneficially owns it. If it is in your partner’s name, or held for them, it is likely to be included. If it truly belongs to their parents or siblings, it may not be. Documents are critical.
Can I stop my partner selling overseas property after we separate?
If there is a risk that property will be sold and the money moved out of reach, the court can make urgent orders to stop dealings with it. Act quickly.
Do I have to go overseas for the property settlement?
Usually not. The settlement is dealt with here, although you may need help from a lawyer or agent in the other country to carry out a transfer or sale.
Talk to Us About Overseas Property
Ipswich Family Lawyers helps separating couples in Ipswich and the western suburbs of Brisbane with property settlements that include property overseas. Book a consultation or call (07) 3378 8500.
