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Re: In case of a divorce, what happens to the marital home?

Posted: Tue Aug 20, 2019 7:43 pm
by Otto Dargan
Hello Jenna. Welcome to the forums.

In case of a divorce, the marital home goes into the asset pool unless there’s a prenuptial agreement stating that one partner keeps the home. Seek legal and financial advice about what you can afford and how all your assets work together to bring financial security and independence.

And yes, you can buy out your partner on a mortgage. The key factor will be whether or not you can qualify for a mortgage on your own. That means you must meet the standard bank policy without your partner’s income.

If you qualify then: There are long term consequences of owning a home:
  • Homes cost a lot of money to get in and get out of (Purchasing and selling costs).
  • Often, partners are forced to sacrifice their other assets and end up selling the property.


Give us a call on 1300 889 743 or fill in our free assessment form to discuss your options when buying out a partner from a joint mortgage.

Cheers,

Re: In case of a divorce, what happens to the marital home?

Posted: Tue Aug 20, 2019 8:05 pm
by Otto Dargan
Hi Jenna,

The maximum you can borrow on that income is around $257,589. This is assuming you have no other existing liabilities. So, if your husband’s pay out figure is $100,000 and the existing balance of $198,660 takes your new home loan to $298,660. Your income doesn’t service the loan.

However, you may receive child support payments which can be used as an additional income source when applying for a mortgage. Not all lenders accept child support income, we do have a few lenders that accept 100% of these support payments.

Re: In case of a divorce, what happens to the marital home?

Posted: Tue Aug 20, 2019 8:37 pm
by Otto Dargan
Hi Jenna,

Yes, you can use the child support payment to show that you can service the loan. Some of our lenders use 100% of these income.

To be eligible:
  • The payment needs to be court-ordered.
  • The payments needs to be received through the Child Support Agency (CSA), a part of the Department of Human Services.
  • You must have been receiving the income for at least six months.
Lenders may ask to see:
  • A copy of the Family Law Court Order
  • Bank statements showing the credits to your account
  • A letter from CSA
  • A letter from your solicitor.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a child support home loan.

Cheers,