Buying a house with your ex while separated

Discussion in 'Legal Issues' started by Annabelle01, 1st Sep, 2020.

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  1. Annabelle01

    Annabelle01 New Member

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    My ex and I have been separated for about 9 months and we are on good amicable terms. I am living in our jointly owned property paying all costs and he moved out and is renting a unit down the road. We have two children together. I don’t think I would qualify for the loan on my own at this point in time. He hates having to pay rent and wouldn’t qualify for a home loan by himself either. We have about 100K of equity in the house and are considering buying a second smaller place for him together with the equity so he gets out of the rental market and has his own place. In return he will let me keep the house until I qualify for the home loan on my own and we can seperate everything properly. Is this even possible? And does this sound absolute ridiculous and stupid and what could be a worst case scenario in this case. Please don’t be cruel I am trying to understand if that could be an option at all. I really don’t want to sell the house I am in and uproot my children and everything...
     
  2. Trainee

    Trainee Well-Known Member

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    Maybe talk to a good mortgage broker first to see if you qualify for a loan by yourself.

    Not even sure what you mean by using the equity for him to buy a property, to be honest.

    maybe put some numbers up? How much the place is worth, loan amount, your incomes, how much is the place he wants to buy? Brokers can give you ideas.

    as for the worst case scenario is if you are still financially tied to each other, and one side loses their job, finds another partner, or it is just no longer amicable.
     
    Last edited: 1st Sep, 2020
  3. wylie

    wylie Moderator Staff Member

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    I believe the biggest threat to doing this and working towards an amicable split when you both can afford to do so is when another partner enters the scene.

    Have you seen a mediation person together, looked at superannuation, got any idea of how you would split amicably?
     
  4. Archaon

    Archaon Well-Known Member

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    I find it difficult to see how you would be able to afford another property combined, if you both dont service separately, that sounds as though with both your incomes you are just able to service the debt you both currently hold in the house?

    Regardless, you will most likely have to apply for a loan together, as you are both liable for the home loan as it is.

    A broker is the best bet moving forward, there are quite a few on this forum who may be able to help.
     
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    A broker is the last person to consult. You dont seem to fathom that your relationship has ended. He isnt a saviour. Moving on with your respective new lives is the next step. Who cares if he doesnt want to sell or pay rent. You need to put yourself and your kids ahead of his controlling ideas.

    Seek your own legal advice and ignore him. He is trying to benefit himself
     
    wylie likes this.
  6. Beano

    Beano Well-Known Member

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    Great idea
    It should work well as interest rates are so low .
    Far better long term to buy another house and get rid of renting ;)
     
  7. neK

    neK Well-Known Member

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    All well and good until a new partner enters the equation.

    You're amicable now - recommend you both work on splitting the assets while this is still the case.
    Sell the house, move on.

    Alternative suggestion:
    Move back in together
    Get marriage counselling
    Get solicitor to draft up the Financial and Custody split now (while its amicable) that you both agree NOW to fall back on should trying to rebuild this marriage does not work.

    If moving back together and getting marriage counselling isn't an option, then why the !@%# are you even considering buying a property together. o_O
     
    Sheshop, Joynz and Peter_Tersteeg like this.
  8. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Many lenders will note that you are seperated and ask about divorce and settlement and may not be thrilled to lend to anyone who hasnt addressed these issues. I imagine brokers would have some issues wth disclosure to lenders too.

    How will the lender know ? - Credit checks, mailing addresses and inconsistent data like drivers license addresses, a employer who mentions it etc or two different home addresses on tax notices etc The two property costs (house loan and rents) especially if rent is being paid by Bpay etc will not assist servicing. Not to mention kids raised on a single income etc.