Home loans and break ups, what to do?
Having a mortgage can be hard work, throwing a divorce or separation into the mix not only pulls on one’s emotions but it can also place people into financial difficulty. This is due to debts that have been acquired by both parties during the time of the relationship don’t go away with the separation, they do however need to be finalised one way or another. In many cases the way the debts will be split or paid off will be determined with the aid of a legal representative. The longer a couple is together the harder it will make it to unwind and tidy up all financial connections.
If you find yourself or a close friend or family member involved in a separation there are some things that can be done to make the process not so stressful, let’s face it, it is bad enough having to go through the process of separating let alone going through the stressful process to tidy the aftermath. There are trained professionals who are there to help you get through this tough time and provide you with the necessary support.
Prior to going through the finances, it is important to sort out the living arrangements. For a number of couples after they have decided to initiate separation they actually have the ability to still live under the same roof until such a time. Unfortunately for others they can’t stand the sight of one and other so they need to work out who will be moving out. This is where talking to the experts will be able to assist with providing you with the relevant advice on what to do such as a counsellor, lawyer, mortgage broker and financial advisor.
Talk to the experts
Organise an appointment to meet and talk with a counsellor, they will be able to assist with the emotions of breaking up. Your councillor will be able to advise after some time whether a Family Dispute Resolution (FDR) mediator is needed to assist and will be able to assess whether the both of you are emotionally ready to negotiate matters and to help resolve disputes.
There are lawyers who specialise in family law and have the ability to provide legal advice. Upon your first scheduled visit they will be able to advise your eligibility for legal aid, as well as assist with timelines and deadlines for your property settlement and also talk with the other party involved.
It is also important you talk to a mortgage broker who specialises in this field to review and help you understand your current finance position and to explain what loan options are available for you to be able to go down the path of conducting a refinance and taking on a certain level of debt on your own.
Once you have sorted out the living arrangements and have the initial stages of the process underway it is important to try and sort out the financial situation, by this time you will know that all of your assets will be divided. To work out your assets and liabilities and who is entitled to what, it will pay to talk to the required professionals at the specific times and gather up as much documentation as possible to help get an understanding of your financial position.
Both parties might decide to sell any properties, divide the assets and move on. The first step will be to talk to your mortgage broker about having the property appraised by a professional valuation firm in which case your broker will be able to explain the process outlining the value and what you will be entitled to. However things can become heated and complicated should there be any disagreements or arguments in relation to how the assets will be split, in this case a legal professional such as a mediator may need to step in.
If one of the interested parties decides they wish to stay in the family home, they may be in a position to refinance and take on the weight of the full mortgage, however this is dependent on their financial position and what they can afford. An agreement will need to be met to assess the value of the property and how the asset is split, professionals such as property valuers, lawyers, and financial advisors will be able to assist with providing input on this information.It is important to talk to the relevant professionals to assist you with going through this tough time as they will be able to assist from start to finish and guide you the whole way making the process a little less of a headache. If you have any questions regarding what finance options are available to you, don’t hesitate to talk to your mortgage broker Gerry and he will be able to assist with answering any questions.