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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 44889
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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I have just recently separated from my husband and I have

Customer Question

I have just recently separated from my husband and I have three children. I want to stay in the family home and husband wants a payout. My question is, is he liable for half the mortgage debt.
Submitted: 9 months ago.
Category: Australia Law
Expert:  Leon replied 9 months ago.

My name is ***** ***** I am a NSW Solicitor. I will do my best to assist you with your question.

Customer: replied 9 months ago.
Thank you
Expert:  Leon replied 9 months ago.

Good Evening.

Any split takes into account the debts.

If the house is sold then you each pay the mortgage and then you get your shares.

If you choose to keep the house and pay him out you only pay him out his share of what is left after the mortgage is deducted.

I hope this makes sense. If there is nothing further

Thank you for using my services.

If I have missed anything, or you have any further questions please let me know

If there is anything else in the future please do not hesitate to ask.

Please do not forget to leave positive feedback.

Regards

Leon

Customer: replied 9 months ago.
Our mortgage debt is $330k and he wants a payout of $150k as this would be his share if we sold the house. Before I give him $150k am I right in saying that the mortgage debt needs to be halved so his debt will be $165k and my debt would be the same plus the payout figure
Customer: replied 9 months ago.
I'm confused by what this means
you choose to keep the house and pay him out you only pay him out his share of what is left after the mortgage is deducted.
Expert:  Leon replied 9 months ago.

Good Evening.

If the house is valued at $700K and the mortgage is $330K if you agree on 50/50 split he gets 50% of $370K which is the equity.

You would end up with the house with the mortgage of $330K and if you borrow what you give him then that is added to your debt.

His share of the mortgage is deducted from what he gets.

Customer: replied 9 months ago.
Sorry so our mortgage is $330k house valued at $650k and he wants $150k what do I give him
Expert:  Leon replied 9 months ago.

The equity in the house is $320K ($650 - $330)

If you agree on 50% split then he should get $160K

But if you are finalising the whole of the property you need to look at everything not just the house. The court will not grant orders on just the house.

The law needs you to disclose everything.

The process that is followed is as follows

Step 1: Determine what the assets are and their value

This will include all assets and their value as at the day that you are dividing them. It does not matter whose name the assets are in, they will form part of the matrimonial pool. Superannuation entitlements are also included.

Step 2: Determine what contributions you and your Husband made towards the assets.

This includes a consideration of both financial and non-financial contributions. Consideration is given to what assets each of you brought into the marriage as well. The weight given to your initial contribution will be dependent upon the length of your relationship. The longer the relationship the less weight given to the initial contribution.

Step 3: What are each of your future needs.

Consideration is given to your respective ages, your comparitive income earning capacity as well as other factors.

IF these things don't balance equally for each spouse, then an adjustment is made in the percentages.

Step 4: Make an order that is just and equitable between both spouses

But 50% of the house from what you tell me is $160K

Customer: replied 9 months ago.
Ok so I will need to add that on top of my current mortgage
Customer: replied 9 months ago.
it will be $480k
Expert:  Leon replied 9 months ago.

Good Evening.

No you do not add the mortgage on top.

His share of the mortgage stays with you and he gets less his share of the mortgage. He only gets the $160K. If tou give him the mortgage as well and he does not pay it off then you are in a worse position.

Customer: replied 9 months ago.
Sorry I'm still a little confused. I would need to borrow to give him $150 so do we split the mortgage debt into separate loans meaning I will have half and he has half in his name and I borrow $150 to pay him out
Expert:  Leon replied 9 months ago.

Good Evening.

Yes you have to borrow the money you have to pay him.

The debt becomes yours.

He does not get the amount that is owing to the bank. You take on the whole of the mortgage and pay him 50% of what is not owning to the bank. This is how it works. If you sell you each get $160K

Customer: replied 9 months ago.
Can this chat be emailed to me
Expert:  Leon replied 9 months ago.

I am sorry I cant email it.

You should be able to print it out.