Expert Tips to Simplify Property Discussions and Make Informed Decisions in the Midst of Divorce Proceedings.
Overcoming the Challenges and Making the Right Choices.
If you’re going through a separation and co-own property with your ex-spouse, remember these essential points:
Seek legal advice before leaving the shared property, as doing so could potentially forfeit your entitlement to it.
For married couples, a claim on property must be made within 12 months of the Divorce Order, and for de facto couples, within 2 years of the separation. It’s crucial to act promptly to ensure a fair division of property and financial settlements.
Consult with a Bank Home Finance Manager and a family lawyer to make informed decisions and develop effective strategies. Your lawyer will assess your financial position, as well as the assets and liabilities acquired during the relationship, to provide tailored advice on property matters.
Navigating the Complexities of Property Ownership When Sharing Assets with Another Person.
If you and your ex-spouse or partner co-own property, there are several options you may consider for financial settlement:
Divide the proceeds from selling the property.
Assume sole responsibility for the mortgage and release your ex from their obligations.
Refinance the mortgage to buy out your ex’s share of the property.
Transfer the title of the property to your ex in exchange for an equity payout from them.
Establish a cohabitation agreement that outlines financial responsibilities, such as mortgage payments and outgoings, during a defined period of time, and includes plans for property division at the end of the term.
Things to Consider Before Taking Over a Mortgage
If you’re thinking about taking over a mortgage, refinancing, or applying for a new home loan, it’s important to keep in mind:
You will need a steady source of income that can support you, your family or dependents, and cover any mortgage repayments.
You must be able to provide evidence of your income, such as payslips, during the loan application process.
It’s wise to have some financial cushion to prepare for potential interest rate hikes or unforeseen expenses.
The bank will assess your previous mortgage payment history and your ability to afford the loan based on your monthly expenses.
Consider which type of home loan suits your needs best.