THE
OHL WIRE
NEWSLETTER
February 2015
7
issue page
2
BUSINESS FLOW CREATES POSITIVE GROWTH
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3
CHILD SUPPORT BASICS
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5
A COSTLY NEW REALITY FOR HOMEOWNERS
LEGAL – WEALTH PROTECTION – INVESTMENTS – BUSINESS – LIFESTYLE – SYDNEY
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6
PROPERTY SETTLEMENT IN DIVORCE
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7
INJURIES AND COMPENSATION
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more
BUSINESS FLOW CREATES POSITIVE GROWTH All businesses start from the ground up and each business goes through certain phases of life: the start-up, growth, decline and maturity or plateau. The life of a business is a never-ending fluctuation of peaks and troughs, which cannot be avoided. Strong businesses however, take steps to weather the fluctuations. The following five steps separate marketleading businesses from those that struggle. 1. Be responsive. Listen to your customers and the market. If the market starts to swing, swing with it. If your customers are already talking about differentials, you have missed the boat. Keep your ears to the ground and watch for even the most minute trend shift.
2. A business that is reflective of your lifestyle, goals and needs, will ensure that you remain positive and committed to its success. 3. Re-assessment points throughout the year need to be seen as threshold indicators. Reassess your business goals on a regular basis and combine this assessment with right analysis. How do you get from point A to point G and are you following the steps in between. 4. Complete analysis of the business leads to better insight and perspective. Bringing outside sources/experts in to help work through difficult situations will enable the business to stay the course.
5. Efficiency should not be a goal, but a necessity. A good business leader knows when to step back and let people with specific expertise handle certain situations. Understanding your business, what drives it and the ebb and flow that will come naturally to it, is imperative for survival and future success. It will enable you to create risk management and contingency plans. It will allow you to lay the foundations for the future. It will enable you to prepare for legal challenges. It will allow you to create positive growth and most importantly consistency.
THE VALUE OF CONVEYANCING One of the predominant investment sectors in Australia is real estate. Whether it is intended as an income source or for simply having a place to call home, property has long been an investment of choice. However, it is not just a buy and sell transaction. The legalities can be complicated, stressful and exhausting. To complete what can be a complicated legal procedure, you will need a conveyancer, but what is conveyancing and what services are provided? Conveyancing is the legal action that involves the transfer of title of real property from a seller to a buyer. A Conveyancer is the title of a person who is qualified to provide those services, which include: ––Preparation of the contract of sale, which involves setting forth the description of property, price, warranties and other terms and conditions.
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––Search and inspections, where issues like pest inspection, financing and a variety of property inspections must be addressed and met.
––Post settlement matters whereby the conveyancer will notify relevant authorities of change in ownership and transfer of required documents.
––Finance, including conducting an examination of the investor’s eligibility and borrowing power, as well as organising a long-term financial plan to avoid future financial entanglements.
––Investors seldom have sufficient knowledge in dealing with conveyancing matters. Not only do these matters consume time and effort, but they can also be complex in terms of the legal expertise required for successful completion of transactions, preparation of contract and the avoidance of any future financial surprises.
––Pre-settlement preparations, which keep the clients informed and updated with estimated costs, including expenses such as building insurance and mortgage. ––The settlement, which encompasses the exchange of legal documents between the buyer, seller and the lender. The conveyancer, or the conveyancing solicitor, also accompanies the client to the settlement to advise on the revision of any documents.
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A CO$TLY NEW REALITY for HOMEOWNERS The New South Wales’ government recently implemented changes to the Home Building Amendment Act that will have costly effects for home and apartment owners throughout the NSW region. Construction defects will now be an unwanted expense, as homeowners will be forced to pay for repairs out of their own pockets. Specifically, all building defects now require identification and compensation to be sought within two years, rather than the previous six years allocated for identifying defects. This four-year reduction will significantly impede building owners from receiving the financial and legal support for the defects to their homes caused by poor construction.
Homeowners must now locate any and all defects within a two-year window, despite many defects only becoming obvious several years after the initial purchase. Importantly, major defects, specifically flaws that cause a building to be inhabitable will be classified under a sixyear warranty. An article written by Sydney Morning Herald journalist Rose Powell into house defects cited a study conducted by The University of NSW City Futures Research Centre, which found that more than 85 per cent of apartment blocks built since 2000 have defects. Furthermore, the majority of the defects included internal water damage and fire safety shortcuts. Though these errors are technically minor
defects, they pose serious and dangerous problems for homeowners who will be responsible for substantial legal and construction fees should problems arise. Homeowners have spoken out about the new amendment, describing it as draconian. Karen Stiles, executive officer of the Owners Corporation Network, states she “could not in good conscience recommend buying into a new building” at this time. It is also believed that interest for new properties will rapidly decline. With the implementation of this new amendment, it is recommended that those who have recently purchased homes seek the correct legal guidance for all home defects in order to prevent costly and unnecessary expenses.
PROPERTY SETTLEMENT in D I V O R C E Divorce is complex and stressful. Shortterm decisions in the heat of divorce may have long-term consequences, including consequences for property-settlement. During a divorce or separation, the division of assets and debt can be processed in three different ways: Without court involvement. Both parties involved in the divorce or separation agree on how the assets and debts should be divided. Formalization of the agreement. Division of assets is consensual. The spouses or de facto partners agree on separation and on its consequences in the Family Court. Court involvement when no agreements are reached. In this case, the spouses or the de facto partners can apply to a Court
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for orders, such as the division of the assets, debts etc. According to the Family Law Act 1975, general principles are the same for marriage divorces or defacto relationship separations. For marriage breakdown, the general principles can be found in Sections 79(4) and 75(2), and for de facto relationships in Sections 90SM(4) and 90SF(3). It is important to note that the way your assets and debts will be divided may differ from case to case as property-settlement also depends on a specific family situation.
Following the hearing of all evidence and the evaluation of the individual case, the judicial officer decides what is fair and equitable for both parties. The result is determined by individual circumstances. As stated, divorce is a complex process and it is difficult to take emotions out of the proceeding. However it is worth gaining some insight into the law and your rights surrounding your assets and entitlements.
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INJURIES and COMPENSATION – PREPARING YOURSELF
NSW legislation provides individuals who are injured in the workplace with certain entitlements, including compensation. The law surrounding personal injuries and compensation claims cover a wide range of different situations including: ––Transport accident: car, motorbike, boat and other vehicle road/traffic accidents ––Workplace injuries: workers’ compensation/workcover ––Medical treatment: medical negligence including malpractice prior to, during and after an operation ––Professional negligence – professional services ––Sexual abuse or harassment ––Criminal act – victims of crime compensation ––Defective product: product liability ––Sustaining injury in a private or public place: occupiers or public liability ––Nervous shock causing psychological injury ––Occupational health risks ––Industrial disease such as asbestosis and mesothelioma. In any successful compensation claim there are a number of factors that need to be taken into consideration in effectively preparing yourself legally. These include the establishment and
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eligibility of your claim, determining the type of claim you are ultimately entitled to through consultation with a legal professional and finally what you can do to prepare for your claim.
Eligibility to make a claim To be eligible to make a claim, the first step that needs to be taken is to demonstrate that someone else was actually at fault or negligent in causing your injury. This is a fundamental step in making a successful claim for personal injury.
Determining the type of claim The type of claim an individual may be entitled to depends upon the particular circumstances surrounding the individual’s injuries. The type of compensation that an individual claims depends on the injury caused and ongoing or permanent impairments, as well as ongoing costs associated with their injury. In determining the type of claim that an individual may be entitled to, the very nature of the injury is key. It is advised that individuals seek advice from a legal professional specialising in personal injuries law to determine what rights you may have and the type of claim that you are eligible for.
Preparing your claim In lodging a claim for compensation, be mindful of or have the following:
––If the individual has suffered injuries from a car crash, it is wise for them to have very specific details as how the accident occurred and if possible obtain any photographs from the accident scene ––All relevant medical reports and etc. ––Receipts of any out of pocket or costs associated with injuries sustained such as medication, and doctor payments ––Car registration details of all parties involved. ––Witness details ––Travel log of all the times that they may have travelled to an appointment due to the injuries sustained ––Medical certificate and details of all the doctors that they may currently be seeing and consulting with ––A record of how they have been affected by injuries and the situation that has occurred ––Organise to be properly medically examined ––Obtain specialist reports If you have experienced a workplace injury, you may be eligible to claim compensation given your individual circumstances. Seek out legal advice in order to effectively assess your claim and determine whether you have rights or entitlements under NSW’s various injuries and compensation schemes.
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INDIVIDUAL AND COMMERCIAL LAW SPECIALISTS Enhancing the lives of our clients by providing for their financial and legal requirements in the acquisition of wealth, protection and management of assets and the transfer of wealth throughout generations. CALL 1800 770 780 VIEW www.owenhodge.com.au VISIT Sydney Office Level 3, 171 Clarence Street, Sydney NSW 2000 Hurstville Office Ormonde Parade, Hurstville NSW 2220