Property (Relationships) Act 1976

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20E Compensation for satisfaction of personal debts

(1)

If a secured or unsecured personal debt of one spouse or partner (party A) has been paid or satisfied (directly or indirectly) out of the relationship property, the court may make one of the following orders in favour of the other spouse or partner (party B):

(a)

an order increasing proportionately the share to which party B would otherwise be entitled in the relationship property:

(b)

an order that property that is part of party A’s separate property be treated as relationship property for the purposes of any division of relationship property under this Act:

(c)

an order that party A pay party B a sum of money as compensation.

(2)

The court may make an order under this section on its own initiative, but must make an order under this section if party B applies for such an order.

(3)

This section applies whether the debt was paid or satisfied voluntarily or pursuant to legal process.

Section 20E: inserted, on 1 February 2002, by section 20 of the Property (Relationships) Amendment Act 2001 (2001 No 5).

Section 20E(1): amended, on 26 April 2005, by section 3(2) of the Property (Relationships) Amendment Act 2005 (2005 No 19).