Hi there. While your father may be the legal owner of the property, other people may acquire a right to a share in the property over time. For example, you and your sister may gain an interest in the property because you are living in the property and effectively repaying his mortgage (via rent). Your father’s wife may also gain an interest in the property in the event of a divorce simply because she was married to him at the time of purchase.

To ensure your father retains his legal ownership of the property in the event of a divorce, he could enter a ‘financial agreement’ (sometimes referred to as a ‘prenuptial agreement’, although this is not the correct name). A financial agreement is a binding legal agreement entered into by parties to a marriage that specifies the financial arrangements should the marriage break down.

The agreement can be made before, during or after a marriage and can cover financial settlement (including property, debts and superannuation), financial support of one spouse after the breakdown, and any incidental issues. For a financial agreement to be binding, both parties must have signed the agreement and received independent legal advice before signing.

Suggested way forward

Entering a financial agreement that specifies property arrangements in the event of a divorce is likely to be the strongest way to protect your father’s (and you and your sister’s) interest in the apartment. You should consider speaking to a family lawyer who can fully assess your options and advise you of the best course of action. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.