Third Parties in Family Law

A third party is defined very broadly as a person (or entity) who is not a party to the marriage. In practice, the third party most often joined into family court proceedings are the following:

• the parents or siblings of the parties to the marriage; and/or
• the entities in which the parties to the marriage are involved in such as companies and trusts.

It is common for a long-standing family business to play a leading part in the assets and financial resources of the relationship. This means elderly parents of a separated child can be drawn into court proceedings as the trustees or appointors of a family trust and/or directors and shareholders of a family company that their child worked for during the relationship.

Why is a third party joined to proceedings?

There are a broad range of reasons why a third party may be joined to family law proceedings. Some of these may include circumstances where:

• they have an interest in property or an entity that forms part of the property pool;
• they have entered into a financial relationship with one or both of the parties or an entity that forms part of the property pool ;
• the orders sought can only be realised by the third party;
• they were party to transaction designed to defeat a spouse’s claim;
• they need to be restrained from dealing with an asset for an order to be effective; or
• where they are a business partner of a party or a creditor.

Under section 90AE (3) of the Family Law Act 1975 the Court is to only make an order if, among some other considerations:

• It is reasonably necessary to effect the division of the parties property;
• It would not foreseeably result in the debt not being paid in full;
• The third party is given procedural fairness;
• In all the circumstances it is just and equitable; and
• Other matters taken into consideration which may consist of:
  • Tax implications
  • Impact on social security
  • Economic, legal, and general capacity of the third party to engage in proceedings and to comply with the order

If you would like to know more about third parties in family law proceedings or find out more about your rights and options, Straits Lawyers are here to help. Simply send us an email at info@straitslawyers.com or give us a call on 8410 9069 to arrange an appointment for an online interview.

Alternatively, you can check out our website at www.straitslawyers.com to find out more.

Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.