Divorce and the family home-Who gets to keep it?
According to a 2014 Australian Bureau of Statistics report, 46,498 divorces occurred in Australia including 1,009 in Tasmania. The average length of marriage was 12 years. Interestingly, whilst the average was 12 years, 37.5% of divorces happened within 2-8 years of marriage. As the length of marriage increases the divorce rates drops off. Those married for more than 30 years represent only 9.4% of all divorces. I guess by then you’ve figured out you’re onto a good thing.
The main age group spanned 35-55 year olds with the peak age being 40-50. By the way, males tend to be married 2.5 years longer than females.
Why am I telling you this?
A large number of marriages, particularly those that have been in place longer often have to consider divorce and the family home when working out who gets what.
There are normally only two outcomes. One of the parties has the desire and capability to retain ownership of the property, or it gets sold and the proceeds split.
The critical step for the person wanting to retain the property is to confirm they have the financial ability to do so. It’s no good going to see your family law solicitor with the stated aim of keeping the home when you haven’t investigated your future borrowing capacity post divorce. Being prepared prior to this meeting armed with the information that yes you do have the financial capability to keep the home will put you in a stronger position to negotiate.
You may need to take over the existing home loan and/or buy out your ex partners share. Either way your post divorce borrowing capacity has to be high enough to cover these liabilities.
If you are in this position, or perhaps just contemplating a divorce or separation we can help. Either download our free ebook. 10 key financial factors you need to know to keep the family home or contact me directly for a Home Retention Assessment at paul@halogenhomeloans.com.au or 0410 520 398.
Disclaimer: I am not suggesting, implying or encouraging divorce or separation with this information. It is simply a way to help people through this emotionally difficult time. My wife and I have been together 34 years this month so I guess we’ve figured out it’s a good thing.
Paul Gilhooly
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