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.

What Is a Binding Financial Agreement (BFA)?

By Jason Given · April 2026 · 5 min read

A Binding Financial Agreement (BFA) is a legal contract between partners that sets out how assets, liabilities, and financial resources will be divided. Unlike Consent Orders, a BFA does not require court approval - it is a private agreement between the parties, each of whom must have independent legal advice.

When a BFA makes sense

BFAs are typically used when both parties agree on the split and want to avoid the time and cost of court filing. They can be entered into before, during, or after a relationship. The process is generally faster than Consent Orders - weeks rather than months.

The requirements

✓Both parties must receive independent legal advice before signing
✓Each lawyer must sign a certificate confirming they provided advice
✓The agreement must be in writing and signed by both parties

BFAs and lending

Some lenders accept a signed BFA as sufficient documentation to proceed with a refinance or equity buyout - meaning you do not need to wait for Consent Orders. Others require Consent Orders before they will approve. Lendology knows which lenders accept BFAs, which can save you months in the refinancing timeline.

Lendology coordinates with your family lawyer to ensure the financial terms in your BFA are achievable from a lending perspective - book a confidential chat before you finalise your agreement.

Frequently asked questions

Can a BFA be overturned?

Yes - BFAs can be challenged if proper legal process was not followed, if there was fraud or duress, or if circumstances have changed materially since signing. This is why independent legal advice for both parties is essential.

Is a BFA cheaper than Consent Orders?

Generally yes - BFAs avoid court filing fees and the time involved in court processing. However, both parties still need independent legal advice, which has a cost. Your family lawyer can advise on the best path for your situation.

What Is a Binding Financial Agreement (BFA) What Is a Binding Financial Agreement (BFA)?