The High Cost of Non-Compliance: Court-Ordered Interest, Enforcement Costs and Protecting Property Settlements

Family law property orders are not something parties can put aside until the timing suits them. Once a court has ordered a payment, property transfer or document to be signed, failing to act within the required timeframe can become remarkably expensive.

The recent Australian family law matter Catlin & Catlin is a striking example. The dispute stretched back to consent orders made in 2016, followed by years of enforcement litigation. On 13 January 2026, the Court ordered the husband to pay the wife $566,119.08 in interest arising from non-compliance, as well as $181,219.39 in enforcement costs. Together, those amounts came to $747,338.47, on top of the underlying financial obligation. A later appeal was discontinued shortly before a security-for-costs hearing, after which the Full Court ordered a further $23,418 in indemnity costs.

The point is not simply that courts can penalise someone for being late. Much of the financial damage comes from mechanisms already built into family law. Section 117B of the Family Law Act 1975 provides for interest on unpaid money orders, although the Court can order otherwise or specify a different rate or starting date. Put simply, an unpaid property settlement can continue becoming more expensive for as long as the debt remains outstanding.

There is also a substantial enforcement framework available under Chapter 11 of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021. Depending on the circumstances, financial obligations can be enforced through seizure and sale of property, attachment of earnings or debts, sequestration or the appointment of a receiver. The Rules also deal specifically with enforcing obligations to sign documents and transfer property.

For property settlements, section 106A of the Family Law Act 1975 is particularly important. If someone has been ordered to execute a deed or other instrument and refuses or neglects to do so, the Court can appoint an officer of the Court or another person to execute it in their name. Refusing to sign, then, does not necessarily stop the transfer. It may simply turn what should have been an administrative step into another costly round of proceedings.

Settlement issueWhat can happenWhy it matters
Money remains unpaidInterest may accrue under s 117BThe longer the delay, the larger the amount ultimately payable
Transfer documents are not signedThe Court can use s 106A to have documents executedRefusing to cooperate may not prevent the transfer
Debt remains outstandingEnforcement warrant or seizure and sale may be availableProperty itself may become part of the enforcement process
Money is held elsewhereThird Party Debt Notices may attach debts or fundsEnforcement can extend beyond the original property
Repeated enforcement is necessaryCosts orders may followThe defaulting party may ultimately pay part of the other side’s enforcement costs
NSW relationship-breakdown transferA s 68 duty exemption may applyCorrect documentation can avoid unnecessary transfer duty

When real property is involved, there are several practical issues that deserve attention early rather than in the final days before a deadline:

  • Refinancing needs to be coordinated. If one spouse is retaining the property, the title transfer and mortgage arrangements need to work together so that the departing party is properly released where the lender agrees.
  • Transfer documents should not be left until the last minute. Court orders may set precise deadlines and require events to happen in a particular sequence.
  • Tax and duty concessions should never be assumed. Their availability depends on the legal basis of the transfer and the supporting documentation.
  • A family law order does not complete the conveyancing by itself. It creates the obligation, but the title still has to be transferred correctly through the relevant land registration process.

Transfer duty and CGT: valuable relief, but not automatic shortcuts

NSW provides important relief for qualifying transfers following a relationship breakdown. Section 68 of the Duties Act 1997 (NSW) can exempt certain transfers of matrimonial or relationship property from transfer duty where the statutory requirements are met. The exemption may apply to transfers made under court orders, binding financial agreements and other qualifying arrangements, including transfers involving the family home, investment property and other real estate forming part of the settlement.

The key phrase, however, is may apply. The transaction still has to fall within the legislation and be supported by the appropriate evidence. That can include the executed transfer, the relevant court order or qualifying agreement and the applicable exemption documentation.

Capital gains tax requires similar care. It is too simplistic to say that former spouses automatically receive a “CGT exemption”. A marriage or relationship breakdown rollover can apply where an asset is transferred because of a qualifying court order, binding financial agreement, arbitral award or another specified arrangement. Where the rollover applies, the transferor generally disregards the capital gain or loss at the time of transfer, with the tax consequences effectively carried forward to a later disposal by the transferee. In qualifying circumstances, the rollover operates automatically rather than being something the parties elect to claim.

That distinction matters. A concession designed to facilitate relationship-breakdown transfers should not be mistaken for a blanket rule that every transfer between former spouses is immediately “CGT-free”.

The broader lesson from Catlin & Catlin is hard to miss. Once orders have been made, delay is not financially neutral. Interest can keep accumulating, enforcement proceedings can multiply and legal costs can consume an increasingly large share of the property pool. What might begin as resistance to a settlement can end up destroying a significant amount of the very capital being fought over.

Flash Conveyancing Advice

If your family law orders require a property transfer, refinance or payment by a particular date, get the conveyancing process moving early. Provide your conveyancer with the sealed orders, title details and lender information as soon as possible. The court order establishes what must happen; careful conveyancing helps make sure it actually happens, correctly and on time.

Receiving final property orders can feel like the end of a long process. When real estate is involved, though, there is often still plenty to do. The home may need to be transferred, a mortgage refinanced, payout figures arranged, Revenue NSW requirements dealt with and the title ultimately updated.

That is where Flash Conveyancing, led by Julian & Renee, can assist with the property-transfer side of a settlement. The focus is practical: turning the terms of the orders into the documents and settlement steps required to complete the transfer, while working alongside family law solicitors and lenders where necessary.

Timing becomes especially important when one former partner is keeping the matrimonial home. The retaining owner may need finance approval before the existing mortgage can be discharged and the departing owner released. If those moving pieces are not coordinated early, a court-imposed deadline can arrive while the lender is still working through its paperwork.

The NSW duty exemption also needs to be dealt with properly rather than taken for granted. Section 68 can provide a full exemption for eligible relationship-breakdown transfers, but the transaction must satisfy the legislation and be supported by the necessary documents. Handling that process correctly helps ensure an eligible transfer is not treated as an ordinary dutiable acquisition.

Tax issues deserve their own attention. A conveyancer can coordinate the property transfer, but CGT rollover eligibility and broader taxation consequences may call for advice from an accountant or tax lawyer, particularly where investment properties, companies, trusts or more complicated ownership structures are involved.

Flash Conveyancing assists buyers, sellers and property owners throughout Sydney, Newcastle and Wollongong, with experience across Blacktown, Hawkesbury, Blue Mountains, The Hills, Hornsby and Parramatta.

Julian & Renee also assist clients in Acacia Gardens, Angus, Arndell Park, Blacktown, Colebee, Glendenning, Glenwood, Grantham Farm, Kellyville Ridge, Kings Langley, Marsden Park, Melonba, Oakhurst, Parklea, Quakers Hill, Riverstone, Schofields, Seven Hills, Stanhope Gardens, Tallawong, The Ponds, Baulkham Hills, Beaumont Hills, Bella Vista, Castle Hill, Kellyville, Kenthurst, North Rocks, Northmead, Rouse Hill, Vineyard, Windsor, Annangrove, Box Hill, Cattai, Dural, Gables, Galston, Glenhaven, Glenorie, Maraylya, Middle Dural, Nelson, North Kellyville, Norwest and Winston Hills, as well as handling property transactions elsewhere across NSW.

A family law order may only run for a few pages, but failing to follow it can have consequences that last for years. Catlin & Catlin shows just how quickly an unpaid obligation can grow into hundreds of thousands of dollars in interest and enforcement costs. Once the Court has settled the legal position, the sensible focus shifts from continuing the fight to getting the property transfer organised, meeting the deadline and preserving as much of the remaining equity as possible.

Authors

  • A licensed conveyancer with a MBA, Julian is a fast-paced, detail-oriented conveyancer dedicated to creating stress-free property transactions across New South Wales. He specializes in making the process seamless for clients whether they are buying, selling, or transferring property. An animal lover and gym enthusiast, Julian spends his free time riding motorcycles, fixing cars, watching anime, and playing video games.

    Licensed Conveyancer MBA
  • With over 15 years in conveyancing and more than 13 years as a business owner, Renee passionately guides clients through buying and selling residential property in New South Wales at Flash Conveyancing. Before finding her true calling in property law, she built a diverse professional background working in banking and other major industries. Married to Julian and a mother of two, she balances her career with motorcycle riding, painting, favorite TV series, and a strong focus on health and fitness at the gym.

    Licensed Conveyancer Founder & JP
  • Holding a degree in philosophy and finishing a postgraduate degree in journalism, Alberto is recognized as one of Colombia’s top writers and editors, currently working with a publishing company to release his upcoming book on the history of rock music. A true polymath, he is also an accomplished multi-instrumentalist on guitar and drums with a relentless attention to detail in his craft. Outside of his professional life, Alberto is a self-proclaimed book addict who devours one to two books a week while maintaining a dedicated, daily routine at the gym.

    Legal Editor

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Disclaimer: All content shared by Flash Conveyancing is for general informational purposes only and does not constitute legal, financial, or investment advice. Accessing this information does not create a conveyancer-client relationship. Text content and images on this website may be created or assisted using artificial intelligence (AI) tools, as well as compiled from external news outlets, media sources, and official government announcements. Flash Conveyancing makes no guarantees regarding the total accuracy or completeness of third-party or AI-generated material and accepts no liability for errors or omissions. Property laws change rapidly; we recommend seeking professional legal advice tailored to your specific circumstances before making any property-related decisions.

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