Who pays the mortgage after the parties separate?
Learn who pays the mortgage after separation. Understand your responsibilities, impacts on credit, and how to avoid mortgage default. Contact us for expert legal advice.

Do I have to keep paying the mortgage on the home if I move out after separation?

Usually where both parties are listed on the mortgage they both remain responsible for the repayments after separation even if one party moves out because of their obligation to the bank.

What happens if I stop contributing to the mortgage?

If the mortgage is not paid it can result in defaults, extra interest payments and could impact your credit ratings.

What happens if one party remains in the home?

If one party remains in the home this does not remove the responsibility to pay the mortgage. However, it is arguable that they then should meet the mortgage repayments because they have sole use and occupation of the property and this would be argued in this situation.

What if I can’t afford the mortgage repayments or to move out?

A problem may arise though if person remaining in the property is not be able to afford the repayments or to move out of the property and the mortgage could fall into default which impacts both parties and could reduce the asset pool because the debt increases.

How do I avoid my mortgage falling into default?

It is important to try and communicate with the other party to reach an agreement about who will pay the mortgage so that it does not fall into default particularly if one or both parties want to retain the property which will mean they may need to obtain a mortgage to do so.

If you would like to talk to a Solicitor regarding your mortgage obligation after separation, please contact us on 07 2113 4645 to schedule your initial consultation.
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