Who Pays The Mortgage After Separation (Australia)?

by | Family

When a couple separates, one partner usually continues living in the family home and the other party lives in rental accommodation. However, this then raises the question – who pays the mortgage after separation (in Australia)? And am I still liable to pay the mortgage repayments if I move out of the family home?

In this article, we will discuss who pays the mortgage after separation and what happens if you fail to make financial contributions in Australia. Should you have any further questions about your share of the property, please don’t hesitate to get in contact with our experienced divorce lawyers.


Who Pays The Mortgage After Separation (Australia)? It Depends On Your Home Loan Or Mortgage…

We are frequently asked whether both parties should contribute towards the mortgage payments, or if it is solely the responsibility of the party who lives in the home.

If your home loan and mortgage are in joint names, then you are both legally liable to pay the mortgage repayments whether or not you are living in the property.

What Happens If One Person Stops Paying The Mortgage?

The bank can pursue either or both of you for arrears and late fees if the repayments are not made in time. Being in default may also affect the credit rating of both parties. If the default continues, the bank can sell the property (this is called foreclosure) and recover the amount owing to it.

If you find yourself in the situation where your ex-spouse is no longer paying, we recommend getting in contact with a property settlement or divorce lawyer. They can inform you of your rights and help you and your ex-partner to come to an agreement. We also suggest talking to your bank so they’re aware of the situation.

What Happens With A Joint Mortgage When You Split Up?

If possible, you and your partner should reach an agreement about who pays the mortgage after separation before one party moves out of the property.

In some cases, the party living in the property will agree to take sole responsibility for the mortgage repayments. In other cases, the parties reach an agreement about how much each of them will contribute towards the repayments.

However, you will still be jointly and separately liable for the mortgage and home loan repayments regardless of the terms of any agreement between you, until a property settlement is finalised. In some cases, the parties will sell the home post separation. In other cases, one party refinances and discharges the joint mortgage.

If You Need Help Determining Who Pays The Mortgage After Separation In Australia…

Our property settlement lawyers can help you to negotiate a property settlement which will separate your joint liabilities and assets in a fair and cost-effective manner. When it comes to mortgage or home loan repayments after separating, it’s important that you know all your options and obligations – because making the wrong decisions now can have future financial ramifications.

At Beger & Co, we also have an expert team of family lawyers that have experience in all areas of family law. Whether you need to attend Family Court for a family dispute, come to a final agreement about child custody or just have questions about your de facto relationship, we’re here to help.

For further information about residential property conveyancing or post separation agreements, please contact Michelle on 8362 6400 or email Michelle Crichton. Join our mailing list to receive updates and advice on current issues.

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    About the author: Michelle Crichton

    Michelle is a specialist lawyer in wills and estates, divorce and injury matters. She has a strong track record in achieving excellent results.

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