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Family law in Australia covers a range of issues related to separation, divorce, and property settlements. When it comes to mortgage payments after separation, property settlements, and buying out an ex-partner from a shared property, there are specific rules and processes that need to be followed.


After separation, both parties may still be liable for the mortgage on their shared property. It’s important to note that even if one person moves out, they may still be responsible for their share of the mortgage payments. In some cases, one person may be required to pay the mortgage in full, while the other person may be responsible for other expenses related to the property, such as utilities or maintenance costs.


If both parties are unable to come to an agreement about who will pay the mortgage, they will need to seek legal advice. A family lawyer can help negotiate a temporary or permanent solution that is in the best interests of both parties. In some cases, the court may order one party to pay the mortgage while the other party is given time to find alternative accommodation.


If you and your partner have parted ways and there is a joint mortgage involved, you have a few potential solutions to consider:


  • staying in a shared payment plan;
  • one party buying out the other;
  • negotiating alternative payment solutions; or
  • selling the house.

These above options are broad topics and it is best you speak to a family lawyer to obtain legal advice. Each option is preferable in specific circumstances. For example, suppose you have a number of children and the mortgage is under your name. Your partner was the only income earner, separates with you and decides to stop paying the mortgage for the family home.


Your partner does not pay child support and you do not know whether he has other properties or assets under his name. In such a circumstance, seeking financial disclosure from your partner and/or force sell the property may be your best option. However, remember if the mortgage is under your name and you do not pay, your credit rating could be adversely effected.


If you are in the process of separating or have already split up and have a mortgage, it is important to alert your lender and get legal advice. There are a variety of family law issues that could arise from your situation, such as parenting and property matters, which can be difficult to comprehend and manage.

Joint Mortgage Paid By One Person

In Australia, when couples take out a joint mortgage, they are both equally responsible for the repayments, regardless of who makes the payments. However, in some cases, one person may end up paying the mortgage by themselves after separation or divorce. This can lead to legal and financial complications, particularly when it comes to property settlements.


In family law in Australia, the responsibility for mortgage payments is not determined by who makes the payments, but rather by who is named on the mortgage agreement. If both parties are named on the mortgage agreement, they are both equally responsible for the mortgage repayments, regardless of who makes the payments.


If one party has been making the mortgage payments on their own after separation or divorce, they may be entitled to a credit in the property settlement. The court will consider several factors when determining whether a credit should be awarded, including:


  • The length of time that one party has been making the mortgage payments on their own
  • The financial contributions made by both parties during the relationship, including income, assets, and liabilities
  • The needs of each party, including their income, living expenses, and any other financial obligations

If the court determines that a credit is appropriate, it will be deducted from the total property pool and will be reflected in the final settlement. However, credit is not automatic and must be sought by the party who has been making the mortgage payments on their own.


Your loan provider won’t be concerned with who is making mortgage payments as long as they are being paid. Not paying your mortgage can have a negative effect on both parties involved, possibly resulting in a lower credit score, higher interest rates on future loans, or foreclosure of the property.

How to Force a Property Settlement?

If you are going through a separation and cannot come to an agreement about property settlement, you should seek legal advice from a family law solicitor. A property settlement is the process of dividing assets and liabilities between parties after a relationship breakdown. Property settlements can include more than just the family home. They can also include any other property, financial assets, and debts that ultimately become part of the asset pool.


To force a property settlement in Australia, you will need to file an application with the Family Court or Federal Circuit Court. The court will then issue a summons to your ex-partner, requiring them to attend a court hearing. At the hearing, the court will consider all evidence provided by both parties and make a decision on how the property should be divided.


If you can come to an agreement, known as consent order, with your ex-partner outside of court, you may not need to go through the property settlement process. A family lawyer can assist you in negotiating a property settlement that is in your best interest.

Going To Court?

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Buying Your Ex Out of the House

If you and your ex-partner jointly own a property and you want to keep the property, you could buy them out. This means you will need to pay them their share of the equity in the property. The amount you will need to pay will depend on the current value of the property, the amount outstanding on the mortgage, and any other outstanding debts related to the property.


To buy your ex out of the house in Australia, you will need to reach an agreement on the value of the property and the amount you will need to pay. It’s important to note that you will also need to consider any stamp duty, legal fees, and other costs associated with transferring ownership of the property.


If you are unable to come to an agreement with your ex-partner, you may need to seek legal assistance. A family lawyer can help negotiate a fair price for the buyout and assist with the legal process of transferring ownership of the property.


In conclusion, dealing with property settlements and mortgage payments after separation can be a complex and challenging process. Seeking legal assistance from divorce lawyers in Sydney can help ensure that your rights are protected and that you receive a fair settlement that is in your best interest.