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Mortgage Broking through divorce or separation

 

Navigating Divorce and Separation: What You Need to Know

Divorce and separation can be challenging, both emotionally and financially. Whether you’re legally married or in a de facto relationship, understanding your rights and obligations can help you make informed decisions—especially when it comes to property, assets, and home loans.

Contact Jennifer Geuna at Mortgage Choice on 0493 432 948 or book an appointment directly below.

Here’s a guide to help you navigate the process in Australia.

Legal Disclaimer: This article provides general information only and does not constitute legal advice. If you are dealing with divorce or separation, you should seek professional legal advice tailored to your specific circumstances.

 

Divorce Process for Married Couples

If you’re legally married and considering divorce, here’s what you need to know:

  1. Eligibility for Divorce
  • At least one spouse must be an Australian citizen, a permanent resident, or have lived in Australia for 12 months.
  • The couple must have been separated for at least 12 months and one day to prove the marriage has irretrievably broken down.
  1. Filing for Divorce
  • You can apply jointly (together) or solely (alone) through the Commonwealth Courts Portal.
  • A filing fee applies (currently around $1,060, though a reduced rate is available for some applicants).
  1. Serving Divorce Papers (For Sole Applications)
  • If one spouse files alone, they must serve the application on the other party.
  • Service can be completed via post or a professional process server.
  1. Court Hearing (If Required)
  • If there are children under 18, a hearing may be necessary to confirm suitable arrangements are in place.
  • For joint applications or cases without children, a hearing may not be needed.
  1. Finalising the Divorce
  • If approved, the divorce order becomes final one month and one day after the hearing.
  • Once finalised, either party is free to remarry.
  1. Property and Financial Settlements
  • Divorce does not automatically settle property and financial matters.
  • A formal property settlement must be agreed upon, with a 12-month time limit from the date of divorce to apply for a court order.

What About De Facto Relationships?

In Australia, de facto couples have similar legal rights to married couples when it comes to separation. However, there’s no formal “divorce” process. Instead, de facto couples must follow these steps:

  1. Recognising a De Facto Relationship

A couple is legally considered de facto if:

  • They have lived together in a genuine domestic relationship for at least two years, OR
  • They have a child together, OR
  • Their relationship is registered under state law.
  1. Property and Financial Settlements
  • De facto couples can apply to the Federal Circuit and Family Court of Australia for property and financial settlements.
  • There is a two-year time limit from the date of separation to make a claim.
  1. Parenting Arrangements
  • If children are involved, parenting arrangements must be agreed upon, either informally or through court orders.
  1. Spousal Maintenance
  • A financially disadvantaged partner may seek spousal maintenance to support their cost of living post-separation.

How Divorce and Separation Affect Your Home Loan

One of the biggest financial concerns during a separation is how to handle the mortgage. Here are some key considerations:

  1. Joint Mortgages
  • If both names are on the loan, you’ll need to decide whether one party will take over the mortgage or if the property will be sold.
  • The lender must approve any changes to the mortgage, including refinancing in one person’s name.
  1. Selling the Property
  • If selling, ensure both parties agree on how the proceeds will be divided.
  • Any outstanding debts or mortgage balances must be settled first.
  1. Refinancing Options
  • If one party wishes to keep the home, they may need to refinance to remove the other party from the loan.
  • Lenders will assess income, liabilities, and financial stability before approving a refinance.
  1. Seeking Professional Advice
  • Speak with a mortgage broker to explore your options, whether it’s refinancing, restructuring your loan, or purchasing a new home post-separation.

Final Thoughts

Divorce and separation can be complicated, but understanding your legal and financial options can help ease the transition. If you’re navigating a separation and need guidance on your mortgage or property finances, speaking to an experienced mortgage broker can make all the difference.

Need Help with Your Home Loan?
If you’re going through a separation and need advice on refinancing or restructuring your mortgage, get in touch today for a confidential consultation! 

Contact Jennifer Geuna at Mortgage Choice on 0493 432 948 or book an appointment directly below.

 


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