Separation and having to organise finances is certainly a very stressful period.
The impact on the family is huge and I can elevate some of the stress in helping those people who are uncertain of what to do next regarding home loans and finances.
When there’s a separation, debts you’ve accrued during the relationship unfortunately don’t go away. The longer a couple is together, the harder it can be to unravel all the financial connections.
Get advice from the experts
The end of a relationship is one of life’s most stressful events. You don’t have to handle it alone – there’s emotional, legal and financial support out there.
Lawyers who specialise in family law can provide legal advice. Initially, they can advise whether you’re eligible for legal aid
and help with timelines and deadlines for your property settlement. Importantly, they should help you to set realistic expectations.
Settle your finances
When you divorce or separate, your assets will be divided. To help you understand your financial situation, have all your documentation at hand – bank statements, tax returns, superannuation, and so on. With professional advice, you can figure out your assets and liabilities, what each person is entitled to, and whether one of you can afford to take on the mortgage alone, or if you have to sell.
One option: Sell the property
You might decide to sell your property, divide any assets and move on. The first step is to have your property appraised so you know the market value. From there you can figure out your total equity. For example, if your house is appraised at $800,000 and you owe $200,000 on the mortgage, your equity is $600,000.
Things can become complicated if there’s a disagreement about how and when to split your assets and liabilities. Legal expertise or a mediator may be needed.
Another option: Sell to your partner, or buy them out
If one of you wants to remain in the house, it might be possible for that person to refinance the mortgage and take it on alone, depending on their income and other assets.
Again, agreement must be reached on the value of the property and whether it’s a 50-50 split. Professional property valuers, financial advisors and lawyers are all able to provide advice and information.
It’s difficult figuring out who gets what and when but getting the right legal and financial advice can help you both break up the mortgage and move on with your lives.
Please give me a call on 0438 789 493 if you are unsure of how to proceed after a relationship breakdown.
I’m only too happy to help you in these stressful times.