I too am in a situation where im seperated, but still have a good relationship with the ex. We have a house, and plenty of debt behind it!! we still want too use the house as a platform to start our financial freedom proccess. The problem is getting out of debt first. Can enyone help us, we have the excitment!! doing a lot of reading, but still have this thing called debt hanging over us. Any advice would be much appreciated.Im a firm believer in “what comes around goes around”
Thank you.Rodie
If you are not divorced, becareful. Any future property that you buy may be at risk when/if you legally decide to get divorced.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi
I second Terry!
My dad allways says: “Where money starts, friendship ends!”. You getting on well with your ex is great, I wish you well and all hapiness, BUT, when the mud hits the fan, who do you/they look out for first!?
Set some legal rules into place! If you want include the existing PPOR and outline what roles and responsibilities each of you have and who gets what when you split permanently and for ever! Then and only then would I consider going on. For their sake and for yours!Cheers
C@34
Rodie,
In some cases, the ex can become a best friend- rare, perhaps, but possible, and if you have your boundaries sorted, there’s no reason why you can’t do a joint venture together. My ex and I are very close, both have real estate interests- which we started together, and i would be happy to invest with her, because I know her inside out… (too much information, I know). The “relationship emotion” has been removed as we’ve both moved on with new partners, but we both have the same ways of seeing real estate. If we still had relationship feelings towartds each other, or would feel differently about investing if there were other people in our lives… then I wouldn’t invest with her.
Aside from the relationship factor, the limited amount of info you’ve provided re your situation, means it’s hard to give an opinion… but if ya wanna get out of debt, then I guess you need to develop a plan- hehe. I’m bad at planning, but others on here aren’t
Can your accountant give you some advice? Financial planner? Are you both working? Saving?kay henry
Rodie,
My advice to you would be don’t buy into any asset unless the boundaries of your relationship are fully established and you have proper legal counsel behind you. Separation/divorce is messy and people have been liable for the ex-partner’s liabilities long after they have parted ways. There are many ways to reliniquish responsiblity, legally and ethically, but to buy into a situation such as property investing without adequate and professional counsel is playing with fire!!!
SEEK LEGAL ADVICE, THE COURTS DON’T GIVE A CROCK IF YOU THE BESTEST OF FRIENDS especially if children are involved!!! Division of assets may be honkey doorey at that moment, but when it comes to “what’s yours and what’s mine” I think you may be not-so-pleasantly surprised!!!
But hey, if you want to run the risk of losing half when/if he re-partners with another who may have a vested interest in what he (and you) own; go for it!!! Apart from legal advice, heed the advice from someone who has been divorced, marriage is a recognised institution that on the surface can be terminatedly easily, but property it becomes nasty business and lots of dirty pool!!!
Jo
Hi Rodie
You didn’t give much info about the type of debt you have apart from the house, so it is hard to give good advice about getting out of it.
If it is consumer debt just go about paying it down ASAP and don’t build it up again until you know how to use it to your advantage. If it is just that the house is heavly in debt then it is not doing either of you any favours so maybe this one is best off selling and starting fresh. Emotion is probably attached if it was the family home, but you can’t let emotion get in the way of investing.
So pay off your debts asap and then assess your position. In the mean time spend some time learning about the investment vehicle that you are planning on using so that when the finances are set so will you be.
Cheers
Leigh K[biggrin]Hi Rodie
The goalposts have moved, and if your ex teams up with another partner who also wants to plan ahead, a collision is likely.
Why not set yourselves an exit strategy / agreement in writing for 2 years hence, get your own personal and private wealth creation plan formulated with all the right professional help, and then you’re set on your own sweet course.
You might be able to finance a buyout of your ex’s property, it would have good credibility with the current lender and therefore should be easier to finance.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Rodie
The best ‘strategy’ I have found of getting out of debt is explained in John Burley’s book ‘Money Secrets of the Rich’. It’s also got other fantastic ideas in it, so I recommend you start there – after you’ve done as the others have suggested with regard to boundaries and stuff[biggrin]
Cheers
Mel
Can your accountant give you some advice? Financial planner? Are you both working? Saving?
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