Both parties remain jointly liable for the mortgage until it is formally resolved - regardless of who lives in the property or who moved out. If both names are on the loan, both are legally responsible for repayments. A missed payment by either party affects both credit files. The mortgage does not automatically change because you separate. It must be actively refinanced into one name, paid out through a property sale, or formally restructured as part of your property settlement.
What happens if my ex stops paying?
If your former partner stops contributing to mortgage repayments, the lender will pursue both borrowers. Missed payments appear on both credit files, which can affect your ability to borrow independently in the future. If you are concerned this may happen, contact your lender early to discuss hardship options and speak to a broker about refinancing to sole name as soon as possible.
Want to know how this applies to your situation?
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Book a confidential chatWhat should you do right now?
Keep all payments current - even if the split feels unfair. Protecting your credit file is critical for your future borrowing capacity. Then speak to a mortgage broker to understand your options for resolving the joint liability. The sooner the mortgage situation is addressed, the less risk both parties carry.
Can one person stop paying and let the other cover the mortgage?
Legally, yes, but it is risky for both parties.
The lender does not care about private arrangements between partners. If one person stops paying, the other must cover the full amount or both credit files are damaged. Any informal agreement about who pays should be formalised in your settlement.
Does moving out mean you stop being liable for the mortgage?
No. Moving out does not change your legal liability.
Both names remain on the loan until it is formally refinanced into one name, sold, or discharged. Joint liability continues regardless of who is living in the property.
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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