What happens to the mortgage when you separate in Australia?

Both parties remain jointly liable for the home loan until it is formally refinanced into one name, sold, or discharged. Joint liability continues regardless of who is living in the property or paying the mortgage. This can affect both parties' borrowing capacity for any new property until the matter is resolved.

Can I refinance a home loan into my name only after separation?

Yes, it is possible to refinance a jointly held home loan into a single name following separation. The person keeping the home needs to demonstrate they can service the loan independently. This typically involves a new credit assessment, updated income verification, and a formal property valuation. A mortgage broker can assess your individual position and identify suitable lenders.

How does a property settlement work in Australia?

Property settlements in Australia are formalised through either Consent Orders (filed with the Family Court) or a Binding Financial Agreement. Both options outline how assets and liabilities are divided. A family law solicitor should guide this process. Your mortgage broker works alongside your legal team to ensure the finance side is structured correctly once the legal agreement is reached.

How does child support affect borrowing capacity after separation?

Child support payments you make are treated as a financial commitment by lenders and reduce your borrowing capacity. Child support received may be counted as income by some lenders, depending on the lender's policy and how it is documented. A broker can identify which lenders treat child support most favourably for your situation.

Do I need consent orders before I can refinance?

Not always. Some lenders will proceed with a refinance based on a separation agreement or Binding Financial Agreement, while others require Consent Orders to be in place. The exact requirement depends on the lender and the specifics of your situation. Your broker can identify which lenders are most practical for your timeline.

What is a partner buyout and how does it work?

A partner buyout is when one party refinances the home loan to pay out the other party's equity share and take sole ownership of the property. The new loan amount covers the existing loan balance plus the partner's equity entitlement, plus any associated legal or transfer costs. The new loan is assessed on the single applicant's income and financial position.

How to Protect Your Credit Score During Separation

By Jason Given · April 2026 · 5 min read

Your credit score does not care about your relationship status. What it cares about is whether payments are being made on time. During separation, joint debts are the biggest risk - if your former partner stops paying their share of a joint mortgage or credit card, both credit files are affected.

The risks

⚠Missed payments on joint debts - even if your partner agreed to pay, a missed payment hits your credit file equally
⚠Multiple credit enquiries - shopping around for loans without a broker generates multiple hard enquiries that lower your score
⚠Defaults on forgotten accounts - joint credit cards, Afterpay accounts, or utility bills in joint names that slip through the cracks

How to protect yourself

✓List all joint debts - mortgage, credit cards, car loans, BNPL accounts. Know exactly what exists in joint names.
✓Keep all payments current - even if you disagree about who should pay, a missed payment damages both of you. Pay now, sort out fairness later.
✓Close joint accounts - close or freeze joint credit cards and BNPL accounts to prevent further joint liability.
✓Use a broker - Lendology applies to one lender only (the right one), minimising credit enquiries. We protect your score by getting it right the first time.

Frequently asked questions

Does separation itself affect my credit score?

No - separation is not recorded on your credit file. Only missed payments, defaults, and credit enquiries affect your score. The risk comes from joint debts being mismanaged during the separation process.

How long does a missed payment stay on my credit file?

Missed payments remain on your credit file for 2 years. Defaults remain for 5 years. This is why keeping all joint payments current during separation is so important - the damage lasts long after the separation is resolved.