Splitting financial obligations post-separation can be a complex endeavour, particularly when it comes to mortgage payments, especially in light of fluctuating interest rates. For those grappling with the question, “I’m moving out – why do I have to keep paying the mortgage?” Bennett Carroll Solicitors, with offices in Brisbane, Gold Coast, and Sunshine Coast, can offer guidance tailored to your legal needs.
As joint owners of a property, it’s probable that both you and your former partner are also joint account holders for the home loan. Irrespective of residency status, the bank expects prompt payments each month. Failure to adhere to these payments can have repercussions on your personal credit score and may result in the bank taking possession of and selling the property.
It’s not uncommon for the departing individual to consider discontinuing mortgage contributions, especially if they’re fulfilling rental payments elsewhere. However, proactive steps can be taken to address this situation:
1. Dialogue with Lender:
Initiate a conversation with your lender to explore potential solutions, such as temporarily halting mortgage payments or transitioning to reduced repayments, like interest-only, while property affairs are being resolved.
2. Management of Redraw Facility:
Ensure any redraw facility associated with the mortgage is appropriately managed, either by cancellation or by implementing joint signature requirements to prevent unauthorised access.
While jointly bearing responsibility for the mortgage is a possibility, many separating couples opt to disentangle their financial ties post-separation. Potential avenues include selling the property and equitably dividing proceeds, transferring one party’s share to the other, or buying out the former partner’s interest.
Given the nuances of each situation, there’s no one-size-fits-all solution. Factors such as income levels and childcare obligations will influence the most suitable course of action. Consulting with Bennett Carroll Solicitors can provide you with tailored legal advice and support as you navigate this challenging phase.
Should you have inquiries concerning property settlements or any aspect of family law, we encourage you to reach out to our team. With our extensive experience and commitment to client service, we’re here to guide you through this process with expertise and compassion.
If you need assistance with family law or any other legal matter, contact our experienced lawyers at Bennett Carroll Solicitors. We have offices in Brisbane (Stafford and Upper Mount Gravatt), Gold Coast (Mermaid Beach) and Sunshine Coast (Kawana/Birtinya). Call us on 1300 334 566 today.
