My husband and I have recently separated and after the settlement I am going to have just the property I live in (plus mortgage). I know property investment works as we went from 0 to 7 properties in 4.5 years and I’m going to be keen to get back into PI again in due course. However for the next year or two my finances are going to be really tight. Has anyone been through the same situation or can anyone recommend any good reading material about starting over in PI after divorce? Any advice or tips anyone can give would be appreciated, especially with refinancing mortgages into single names! [glum2]
Just a quick question, Why is PI different after divorce?
I didn’t think it was. All the fundamentals are the same.Good luck, I’m sure you will make it even faster now your husbnd isn’t holding you back.
CATA
Asset Protection Specialist
[email protected]Hi Melmac,
Having just been down that track I know exactly how you feel. Seems a bit raw that out of 7 you only get the PPOR but there’s a story to everything. I at least got the PPOR and, after an additional cash settlement to him, 1 of the 3 investment properties. Since I did *everything* related to the properties it was just a matter of doing it all in my own name. But that didn’t turn out to be as simple as what it sounded. As part of the property settlement every thing was mortgaged to 80%, and because equity wasn’t increasing as fast as it had been I couldn’t do the next one as fast as I would have liked.
It’s really so frustrating wanting to do something, chasing the finance broker with scenarios, and not being able to do it because the numbers don’t add up yet. My finance broker quit – he probably got sick of me hounding him
Well no, he went to a bank, then was such a good bloke he referred me to another bank’s loans officer that could do what his bank couldn’t.A year ago I decided tax-wise it was better off for me to move out of the PPOR and turn it into an investment property. (If you’re going to do that, don’t forget to get it valued for CGT purposes.) Finance people still look strange at you when you don’t live in one of your properties – especially if you only live up the street.
It’s now 20 months since the separation, 15 months since the property settlement and refinancing into my name, and after a small hicough because I went contracting …. I’ve finally beaten my head up against the brick wall long enough and it’s fallen down. I’ve just signed the contract for my first “post-relationship” investment property – and it’s positively geared to boot. Just have to keep the snowball rolling now!
Don’t know if there’s any good reading material about “PI after divorce” but there’s plenty of good reading material – just keep reading it. I found keeping the research up, going to property investing nights, seminars and expos was the best thing. Even if you’re not actually buying anything yet you’re hanging around people who are, and still swapping ideas and enthusiasm.
May be if you start your own “PI after divorce club” …. you can write your own book on “PI after divorce” – that would help with the serviceability
Serously though, hang in there – you can do it.
At least you have somewhere to live. 10 years ago I walked away with my only my bags and 2 kids. We moved away to make a fresh start and really dropped our standard of living to save money. It took 5 years to get over the emotional and finacial pain of the divorce but things are looking good now. The best bit of advice given to me was put everything in little boxes and handle one issue at a time. Don’t rush it takes time for you and your children to heal after divorce.
When it comes time to get finance shop around as some banks will accept child support as income although you need to show a good payment history.
Good luckAJBS
Thx for your replies – it’s good to know that other people have managed to “come back” from the depths.
And no, there is no difference in PI after divorce but all businesses and especially the financial institutions tend to look differently at someone who is separated/divorced, particularly if there are children involved.
Hello melmac
I too am starting over but not from divorce. (I got divorced years ago when we both had nothing). Without going into the whole story, I am now rebuilding from a minus situation i.e. debt, no assets, no current income with my 48th birthday this week. Ouch.
I personally have put a plan in place and each day I get up and work my plan. Each day I ask myself “How have I forwarded my goal today”. I make myself take some small steps every day.
Having financed a number of investment properties in the past as a single woman I know I will be able to do that again soon. 1st step though is some regular income i.e. a job.
Steve’s 2nd book “$1m in Property in One Year” is very inspiring and I am rereading it now. Some of the Mappers really had to overcome some big obstacles and they did it.
All the best as you build again. I hope you get to enjoy the freedom of it that I am starting to realise.
Dale
Dale
Hi
I believe that people are just better off remaining with their spouses in the first place, thus saving that headache.
Question: Is it true that in life we are going to have problems whatever we do in life?
Sooner or later we always want someone to be there, and it’s just as easy to remain with our spouse.
Either way, we are going to have problems, so we may as well stay with our spouses.
*NB – I am currently single, and having been separated from my ex for the past two to three years, I’ve realised that it wouldn’t have mattered either way. Problems are always going to be there.
Besides, statistically, couples, both men and women are better off financially by remaining in a marriage status.
It’s and indirect methodology for being able to retain and improve your current financial position.
Best of luck to all of you battling through tough emotional and financial times. Chin up and know it can only get better.
I understand that property investing can become difficult for the partner who has to pay child support. Any positive geared profits must be paid to spouse and Any negative geared losses are COUNTED AS INCOME and some of this paid to spouse. So it costs twice as much as usual to hold an investment property.
Neutral geared property seems the only answer, or other non-geared capital growth investments that don’t generate income (shares) and can accumulate wealth silently (as far as tax returns are concerned, which child services count for income assessment and maintenance payments). Just sit on such a nest egg until the last kid hits 18.
I have a friend who went from a multi million dollar portfolio down to a very small PPOR within months of divorce.
His only option as he can see was to sell up the ip’s and to put money into his PPoR. extensions, reno and maybe upgrade to a more valuable house.Don’t get me wrong, i’m not suggesting that anyone should be deceitful to cheat their own kids out of money, it just seems that the system hamstrings the separated spouse that has no custody of kids from gaining any wealth, no matter how hard they work.
Nathan, I have to disagree with you on the idealistic notion that once together, you should stay together. Bad relationships that can’t be fixed are unhealthy for both partners, and can be very damaging to any children exposed to such conflict….. sometimes you have to do what is best, even if it hurts.
My thoughts go out to anyone going through such a time, I can only imagine the pain…
Be positive, and you’ll do fine,[thumbsup2]
[wacko] I to am starting over at age 50, recovering from illness and divorce. Should be in a position in 6 months to begin again. In the meantime reading and researching.
I was wondering if anyone knows what became of all the people involved with Steves MAP.
Regards
Swany
Originally posted by Nathan Danker:Hi
I believe that people are just better off remaining with their spouses in the first place, thus saving that headache.
Question: Is it true that in life we are going to have problems whatever we do in life?
Sooner or later we always want someone to be there, and it’s just as easy to remain with our spouse.
Either way, we are going to have problems, so we may as well stay with our spouses.
*NB – I am currently single, and having been separated from my ex for the past two to three years, I’ve realised that it wouldn’t have mattered either way. Problems are always going to be there.
Besides, statistically, couples, both men and women are better off financially by remaining in a marriage status.
It’s and indirect methodology for being able to retain and improve your current financial position.
Nathan – this is a very old post to reopen, just to talk about staying with your partner. And like lifeX I disagree, especially as I just went through it, and had no choice in the matter anyway.
You may have made a choice or a mistake, which we all make occasionaly, but sometimes there is no going back. You have to move on – maybe you need to have a think on that aspect. Good luck with that.
Regards
JohnInspired Finance
(02) 9944 7776
Well no, he went to a bank, then was such a good bloke he referred me to another bank’s loans officer that could do what his bank couldn’t.
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