Classic Family Law Problems
These days, redraw facilities are a common feature of home loans of all varieties. Those that are capable of being operated by each of the parties to a marriage independently of the other person represent a regular problem where relationships break down.
Where "equity" as it is termed, is created in a loan, there lies the potential for the use of a redraw facility, sometimes for large sums. In some instances, redraws of hundreds of thousands of dollars, have occured following the failure of a marriage, at the request of one spouse. Unfortunately this makes the other spouse unhappy, when they find the money gone.
To avoid such issues prudence, suggests that redraw facilities should only be operable jointly. This may be inconvenient for some, but finding $500,000 missing and your loan account overdrawn is a lot more inconvenient. Alternatively, if the bluebird of unhappiness comes to nest in a relationship, the safest course is to ensure that notice is given to the relevant bank to terminate or restrict the redraw facility.
Similar observations apply to credit cards and jointly operated accounts, though in the past banks have required the delivery of the card for cancellation. In any event, it is better to attempt cancellation than deal with the consequences.
Last edited by Mark Warton; 28-09-2011 at 19:26.
Reason: added content
" As nightfall does not come all at once, neither does oppression. In both instances, there is a twilight when everything remains seemingly unchanged. And it is in such twilight that we all must be most aware of change in the air — however slight — lest we become unwitting victims of the darkness. " William Orville Douglas Associate Justice Supreme Court of the USA
Reply With Quote
