Spousal maintenance is a payment from one ex-partner to the other to help meet reasonable living expenses after separation. It is based on one party's need and the other's capacity to pay. From a lending perspective, spousal maintenance you pay reduces your borrowing capacity (it is treated as a financial commitment). Spousal maintenance you receive may be counted as income by some lenders - but not all, and typically only if it is court-ordered and has a defined duration.
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Book a confidential chatHow lenders treat it
Lender treatment of spousal maintenance varies significantly. Some count it as income for 80% of its value. Others ignore it entirely. Some require it to be court-ordered with a minimum remaining term. The difference between lenders can mean $50,000+ in borrowing capacity. This is where a broker who understands separation finance makes a real difference.
How long does spousal maintenance last?
There is no fixed period. It depends on the receiving party's need and the paying party's capacity.
Spousal maintenance can be for a set period (such as until the receiving party completes retraining) or ongoing. Lenders may treat fixed-term maintenance differently from ongoing payments when assessing borrowing capacity.
Can I count spousal maintenance as income for a home loan?
Some lenders will count spousal maintenance received as assessable income, but not all.
Lenders that accept it typically require documentation showing the amount, frequency, and duration of the maintenance arrangement. A formal agreement or court order carries more weight than an informal arrangement.
We are not just explaining the process. We arrange the actual finance: refinancing into your sole name, funding a partner buyout, or setting up a new loan independently after settlement. We work with a panel of over 60 lenders to find the one that fits your situation.
Once the legal side of your property settlement is resolved, the next step is usually a financial one. That is where we come in.
Jason and Steve also help clients with first home loans, refinancing, and investment lending at lendology.com.au.
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