does anyone with finance broking experience in separation/divorce know how i would go about buying out my ex-husband. property worth $500,000. earning $86,000/yr, equity $217,000. what will i need to proceed with a broker?
thanks, erica.
Hi Erica
Admitedly my experience in dealing with divorce / separation in not from personal perspective but from a advisory point of view.
I assume that you have both come to an arrangment as to how much he requires to receive to be removed from the Title deed.
As long as this has been achieved then the rest is fairly straight forward.
A new loan will be taken out with a condition that on settlement the property be Transferred into your sole name.
Depending on the State in which you are in stamp duty maybe payable on the Transfer.
Once the loan has settled your repayments will be paid to the new lender and all is well.
Just make sure you dont agree to pay out a percentage where you feel your will struggle with the end repayments.
Richard Taylor | Australia's leading private lender
Hi Erica. Richard has covered the logistics – you will both have to agree on the amount though. I know in NSW (I would imagine elsewhere too) stamp duty is not payable agaiin on a court/legal ordered divorce settlement when transferring property. From your end I hope you reach an agreemnt amicably on how much is involved as 'walkaway' price. Half of the property value? Half of the equity? Or somehwere in between. Hope it all works out ok…..and may I also say 'welcome to the forum' Erica.
In Qld you certainly would be up for additional stamp duty for the transfer so hope you are away from the Sunshine State.
Richard Taylor | Australia's leading private lender
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Thanks
S
Thanks Maria for your useful first post contribution but just to let you now most mortgage brokers provide free advice this is not limited to Lawfund.
Richard Taylor | Australia's leading private lender
Alternatively you might be able to do a loan advance to say cover the stamp duty on the transfer and have the title transferred into the sole name at the same time at settlement. Please check with your current lender.
Having gone through a divorce recently I am glad I consulted with a lawyer. I brought all to the table at the start of marriage. At the end my ex and I agreed to divy up all down the middle. Then when I stoped crying and started thinking I consulted legal just to check all was kosher which it was not. I am happy to pay the legal for the net benefit of checking my options rather than working it out myslef and making a costly mistake. A side point but i think a key issue to be aware of from one who has gone through it.
When you have decided what the split will be then consult a broker to help you sort it out. The Broker cannot help you decide what is fair – just help you finance it.
If you have that equity and income then this shouldn't be a difficult loan to put together and any decent broker will be able to help.
Richard Taylor who posted above has certainly demonstrated he is a man of experience and integrity and I think we all agree that these are probably the most important things we want from our broker!
All the best to you,
thank you everyone for your help, finance is in the pipeline and it means alot to a noob like me.
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