The number of broken relationships today has increased and this becomes even more complicated when you have bought a home together.
Suddenly, the dream home becomes a bone of contention when splitting up joint assets. Who gets the house?
Your ability to buy out your partner or buy a new home depends on your circumstances… Who earns more? Who has majority custody of the kids? What the property is worth compared to the existing loan?
The smart move is to speak to your broker before going to your solicitor. Once you know how much you can borrow, you will have a better understanding of your options. It may be that you have to change jobs and wait a period before you can complete settlement.
It is a sad fact that many women are still unable to compete with men in the property market due to lower incomes (not always the case but still widespread). Many women revert to part time or casual work once the children are born (I have also seen the opposite!). In these cases, their ability to purchase another home can be limited. Sometimes it is easier for both parties for the partner with the lowest income to buy out their ex.
Do yourself a favour – don’t sign a settlement agreement until you know what you are capable of financially.
I hear time and again: “We don’t need a solicitor. It’s all amicable!”
Remember, it’s only amicable until something changes. A handshake agreement is only worth the paper it’s written on. You are not always aware of new laws and entitlements. A solicitor is a small price to pay for total understanding. Look for a solicitor that is well versed in Family Law.
Your break up doesn’t have to be any harder!
But the answer is still yes – in most cases you CAN buy them out.