Property Disputes in Family Law – Will a Caveat Protect Me?

When a relationship breaks down, it’s common for one party to worry about what will happen to the family home or other shared property — especially if the title is in the other person’s name.

One of the first questions we often hear is:

“Should I put a caveat on the property to protect my interest?”

At Wallen Family Law, we help clients across Wollongong and NSW understand when a caveat can help protect their rights — and when it might not.

1. What Is a Caveat?

A caveat is a formal notice lodged on the title of a property that prevents it from being sold, transferred, or refinanced without the caveator’s consent.

In simple terms, it’s a legal “red flag” telling anyone who searches the title that someone else claims an interest in the property.

However — and this is crucial — a caveat does not create ownership. It simply protects an existing legal or equitable interest that already exists.

2. When You Can (and Can’t) Lodge a Caveat

To lodge a caveat, you must have a “caveatable interest” in the property.

This may include situations where:

• You have contributed significantly to the purchase deposit or ongoing mortgage;

• The property is held in your partner’s sole name, but you’ve contributed to its value (financially or through improvements);

• There’s a clear, enforceable agreement giving you rights in the property.

You cannot lodge a caveat simply because you are married or de facto partners, or because you plan to make a future property claim. Lodging a caveat without a valid interest may expose you to a costs order if it’s found to be improper.

3. How a Caveat Protects You

In family law, a caveat can be a useful short-term safeguard where:

• You fear the other party may try to sell or mortgage the property;

• You’ve contributed to a property that is in the other party’s name;

• You are negotiating a property settlement and want to maintain the status quo.

A valid caveat can effectively “freeze” the property until your claim is resolved or withdrawn. This gives your lawyer time to prepare your family law court application or negotiate Consent Orders to protect your interest formally.

4. When a Caveat Might Not Be Enough

A caveat is not a long-term solution. It:

• Doesn’t grant ownership;

• Can be challenged and removed; and

• Won’t stop a court from making property settlement orders under the Family Law Act 1975.

If the registered owner disputes your claim, they can issue a lapsing notice, giving you a short timeframe (usually 21 days) to start legal proceedings in the Supreme Court or Federal Circuit and Family Court to prove your interest. If you don’t act within that time, the caveat will lapse and be removed.

5. Alternatives and Legal Options

Depending on your situation, there are other ways to protect your interest in property during separation, including:

• Applying to the Family Court for an injunction to prevent sale or dealing with the property;

• Registering Consent Orders or entering into a binding financial agreement that clearly allocates property ownership; or

• Negotiating undertakings between lawyers to preserve the property pending settlement.

Your lawyer can assess which option best protects your interests and avoids unnecessary litigation or costs.

6. Practical Advice

Get legal advice before lodging a caveat. It must be based on a genuine legal or equitable interest.
Don’t delay your property settlement. The longer you wait, the greater the risk of financial changes that affect outcomes.
Keep full disclosure. Hiding assets or delaying negotiations can damage credibility and increase costs.

A caveat is a useful protective tool — but it should form part of a broader, well-advised strategy, not your only safeguard.

Wallen Family Law — Family Law, Made Clear.

If you’ve separated and want to protect your interest in property, we can help you assess whether lodging a caveat is appropriate — and guide you through your options to safeguard your financial position.
📍 Based in Wollongong, assisting clients across NSW.
💬 Book your free 15-minute consultation today for clear, practical advice.

This article provides general information only and should not be relied upon as legal advice. Every family law matter is unique and requires specific legal guidance. Always seek professional legal advice for your specific situation.