Property settlement following a separation is a complicated issue to navigate at the best of times. But when you add in international assets, the complexity compounds. The need to address this effectively has become more important than ever as global families and high-net-wealth couples face increasingly complex asset divisions, often involving multiple jurisdictions.
International asset issues are likely to affect a growing number of Australians. Recent wealth research estimates that Australia has around 334,800 high-net-worth individuals, being those with investable assets of at least US$1 million.
While we don’t know exactly how many Australians own property or assets overseas, we do know that more than 6 million Australians own shares, and many of these are in overseas equity or international exchange-traded funds, and up to 30% of Australians have considered buying or investing in property overseas due to our recent housing pressures.
When you hold overseas properties, businesses or other assets, when you’re going through a divorce or separation, your property settlement may involve different legal systems, tax requirements and valuation issues. Strategic guidance, access to international connections and clear, honest communication can help you understand your position and achieve the best possible outcome.
Here at Watts McCray, we’re one of Australia’s leading family law firms with expertise in international property settlements and cross-border asset protection. Our specialist team supports clients to navigate international property settlements with clarity and confidence, ensuring every asset – no matter where it’s located – is properly accounted for.
Call 1300 516 443 or head to our website. We’re here to help.
Understanding overseas assets in Australian family law
The first step in an international property settlement is identifying what’s held overseas and understanding how those assets will be treated in Australia. Under Australian family law, property owned by either party will form part of the property pool, regardless of whether it is located in Australia or another country. The Family Law Act 1975 (Cth) (the Family Law Act) guides the division of how all property, including overseas property, is considered and divided following a divorce or separation.
What counts as ‘overseas property’?
For a property settlement, overseas property can include assets and liabilities located outside Australia, as well as interests in overseas entities or financial arrangements held by you, your ex-partner or both of you, or in which one or both of you have an interest.
Depending on your circumstances, overseas financial resources may also be relevant to your property settlement.
Considerations might include:
- Properties and real estate abroad
- Foreign bank accounts and investments
- Shares, investments and business interests in other countries
- Superannuation and pension equivalents held overseas
- Interests in trusts and companies registered offshore
- Vehicles, valuables and personal items owned overseas
- International mortgages, loans and other liabilities
The importance of disclosing overseas property
Just as you and your ex must offer full and frank disclosure of all Australian property under the Family Law Act, you’re also required to disclose all international property of any kind. The duty to disclose is ongoing and includes documents and information held electronically or outside Australia.
If you fail to disclose foreign holdings this can lead to court penalties or reopened settlements, with the resulting lack of closure and certainty.
Does the Australian Family Court have jurisdiction over overseas property?
An Australian family court may be able to deal with overseas assets as part of your property settlement if it has jurisdiction over your family-law financial dispute. Whether it does will depend on the circumstances of your case.
The Court may consider factors such as your connection with Australia, where you and your ex-partner live and whether there are related proceedings or orders in another country.
An Australian Court may make orders requiring you or your ex-partner to deal with overseas property. However, enforcing those orders is a separate issue. The law and procedures in the country where the asset is located will determine whether and how you can enforce an order. Unfortunately, this can sometimes be difficult – and you may need to take further legal action in that country.
Challenges in international property settlements
Many different issues can arise when dealing with overseas assets in an Australian property settlement. This is when it helps to have qualified Australian lawyers with a deep understanding of cross-border property settlements.
Identifying and valuing overseas assets under family law
Overseas assets can be harder to find and value than assets held in Australia. You may need to navigate foreign financial systems, changing currency exchange rates and different disclosure requirements.
Depending on the asset and where it is held, you may need a valuer in that country. Local valuation standards, limited access to documents, foreign-language material and finding suitably qualified experts can also make the process more complex.
Working across multiple jurisdictions
Laws vary from country to country, so you may face conflicting laws or parallel proceedings in different jurisdictions.
Get legal advice early to understand whether an Australian court may have jurisdiction, whether another country’s court may also be involved, and where you should start any proceedings.
Enforcing orders outside of Australia
When an Australian court makes property orders involving overseas assets, enforcing those orders may depend on the laws and procedures in the country where the asset is located. You may need to take further legal action in that country.
In some cases, you may be able to seek recognition, registration or complementary (“mirror”) orders in the relevant overseas jurisdiction. Whether this is available will depend on that country’s laws, the type of Australian order and any applicable international arrangements.
Watts McCray can advise you on Australian family-law issues and work with appropriately qualified overseas lawyers when you need foreign advice, recognition or enforcement action.
International marriages and dual citizenship
If you or your ex-partner live overseas or hold dual citizenship, your property settlement may become more complex. The same applies if a significant portion of your assets is held overseas. In these situations, get legal advice about the most appropriate jurisdiction and your practical options for resolving the settlement.
Your citizenship, where you live or where your assets are located won’t automatically determine which country deals with your property settlement. The right approach will depend on the circumstances of your case.
Tracking hidden or transferred assets overseas
Hiding or improperly transferring property during a settlement can have serious consequences. When this happens overseas, it can also make it harder to trace the asset or obtain the documents and evidence you need.
If you think your ex-partner has hidden property in another country, get legal advice early. Depending on your circumstances, you may be able to investigate using Australian financial or tax records, disclosure processes, overseas documents or a suitably qualified forensic accountant.
Watts McCray can advise you on your Australian legal options and, where appropriate, work with overseas lawyers and forensic accountants to help investigate overseas assets.
Tax issues
Transferring or selling overseas assets can have tax consequences in Australia and in the country where the asset is located. Before you take action, get Australian tax advice and, if needed, advice from a suitably qualified adviser in the relevant overseas jurisdiction.
How our international family lawyers can help
When it comes to overseas assets in cross-border property settlements, it’s crucial to seek the advice of qualified property lawyers as early as possible. As experts in family law, the Watts McCray team has decades of experience in complex property matters, and a team of accredited specialists to assist you.
We appreciate the interconnection of foreign laws with Australia, and can work alongside international family law experts to achieve the best results for you. Our priority is making sure that your overseas assets are recognised and protected within your Australian property settlement, and ensuring you have the best advice available.
We provide practical legal support tailored to your individual circumstances, including:
- Advising on overseas property division
- Assisting with the tracing ofhidden or transferred assets abroad
- Liaising with overseas legal and financial experts
- Determining the best jurisdiction for proceedings
- Strategising for overseas enforcement of Australian court orders
- Assisting expatriates and returning Australians
- Advising on dual or foreign citizenship implications
Common scenarios we assist with
- One or both parties own property abroad
- Business or company interests are held in another country
- Foreign income or trusts are included in the property pool
- One spouse, or both, lived overseas during or after the separation
- Marriage or de facto relationship is registered overseas
Why choose Watts McCray for international property settlements
Watts McCray is the team you can trust for clear, confidential legal support in complex cross-border property settlements. We have more than four decades of experience and an extensive network of overseas legal and financial partners to help us achieve the best outcome for you and your family.
We can advise on Australian family-law issues involving overseas assets, including their identification, disclosure, valuation and treatment in a property settlement. Where appropriate, we can also work with overseas lawyers and forensic experts to investigate assets held outside Australia and consider available options for recognition or enforcement. Your financial security is our priority.
- Expert family law firm with more than 40 years of family law experience, including complex international matters
- A team of accredited specialists to advise
- Deep understanding of cross-border property division
- Strong network of overseas legal and financial partners
- Expertise in high-asset, international and expatriate divorces
- Discreet and strategic handling of sensitive global financial matters
The Watts McCray international property settlement process
Step 1: Initial consultation
Meet with one of our expert family lawyers to discuss your settlement situation. We’ll discuss your relationship background and identify any overseas assets you or your ex-partner may have. Early legal advice is important when property is held across multiple countries.
Step 2: Asset disclosure and documentation
We’ll help you identify and gather relevant information about your domestic and overseas holdings. This may include properties, accounts, vehicles and other assets or liabilities.
Step 3: Valuation and jurisdiction assessment
We’ll consider how and in which jurisdiction property may be valued and dealt with. This may require consultation with appropriately qualified overseas experts. Reliable information about the value of relevant assets and liabilities will help make sure that your property settlement is fair and equitable.
Step 4: Negotiation and mediation
We aim to help you resolve property matters –including those involving overseas assets – without litigation where possible, particularly in cross-border cases. The goal is always to reach a just and equitable agreement through private negotiation, mediation or, where appropriate, arbitration.
Step 5: Court orders and enforcement
If Court orders are required, we can represent you in Australian family-law proceedings. We can also advise on options for the recognition or enforcement of Australian property orders overseas, where available, and work with appropriately qualified lawyers in the relevant overseas jurisdiction.
Contact our Specialist Family Law Team
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FAQs
It can. If an Australian court has jurisdiction over your property settlement, it will consider assets and liabilities you or your ex hold overseas. This can include assets held in your sole name, your ex-partner’s name or jointly.
Australian courts may make orders about overseas property as part of your property settlement. However, if the property is in another country, you may need to take extra legal steps there before you can enforce an Australian order. The process will depend on the laws and procedures of the country where the property is located.
Your ex must disclose relevant assets during a property settlement, including assets held overseas. The duty of disclosure covers relevant financial information and documents about overseas property, liabilities and financial resources.
If you think your ex has hidden overseas assets, speak with a lawyer early. You may be able to investigate using disclosure processes, Australian financial and tax records, overseas documents or forensic accounting evidence.
In some cases, yes. You may need overseas legal advice if you need to deal with property, recognition or enforcement issues in another country. Watts McCray can advise you on Australian family-law issues and, where needed, work with lawyers and financial experts qualified in the relevant overseas jurisdiction.
Getting married overseas does not automatically stop you from seeking a property settlement in Australia. Whether an Australian court can hear your matter will depend on your circumstances, including your and your ex-partner’s connection with Australia and whether there are related proceedings in another country.
Speak with a lawyer to work out the most appropriate jurisdiction for your matter.
Get legal advice early, especially if you or your ex hold property in more than one country. If you are worried that your ex may sell, transfer or deal with an asset before you finalise your settlement, you may be able to ask the Court to make orders restraining them from doing so. What you can do will depend on your circumstances and where the property is located.
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