Protecting Your Blended Family

by Reta Benjamin | Jan 13, 2025| Latest News

When your family structure is complex, it is important to have clear and effective ownership of property. Having to balance your obligations with your spouse and your respective children from previous relationships can be a tricky task.

Ordinarily, we recommend that couples purchase properties as ‘joint tenants’. This means that, if one spouse passes away, the property automatically passes onto the surviving partner. The property does not form part of your estate because of this automatic transfer.
But the most effective way to deal with property in a second relationship is to own your real estate as ‘tenants in common’ when you are purchasing property with your new spouse. The property is still jointly owned, but the legal difference is important. The property can be owned 50/50 or in whatever proportions you both contribute to it, for example, 75/25.

Owning your property as tenants in common will allow your Will to deal with your share of the property however you wish. This can include providing your spouse with a right to reside in the property after you pass away so as to allow them to continue to live in the property for however long they wish.

A right to reside typically expires when your spouse vacates the property by moving into a retirement home or by them passing away themselves. At that point, the property will then be sold and your share of the property will be distributed to your named beneficiaries.

When entering into a relationship when both parties have children from previous relationships you need to carefully consider your respective financial positions at the start of your relationship to avoid conflict when it comes time to resolving your estate.

Incorporating right to reside provision in your will is a thoughtful way to protect your spouse from housing insecurity. With proper planning you will ensure that your intentions are respected, minimise conflicts and provide clarity for all parties involved.

Our Estates Team has decades of experience helping the people of Macarthur and Wollondilly protect their families. Let us help you.