‍Working out financial details after or during a break up can be awkward and upsetting. This situation, while sometimes fraught, is definitely not uncommon! If you find yourself in this position, here are the steps you can take:

1. You both need independent legal advice

Depending on the length of relationship, if you’re married, or whether you have children, there will potentially already be lawyers involved. Not all solicitors do all types of law, bigger firms will generally have a cross section of specialist solicitors that you can draw on. You’ll need to decide who keeps your current solicitor, and who goes to another lawyer for independent legal advice.

If one of you wishes to purchase the house you both currently own, or one or both of you wish to purchase other properties once current home is sold, you need to confirm how profit/equity will be divvied up.

The law has some very strong views on who gets what (which may differ from your opinions), if there had been a relationship property agreement drawn up, or if the property is in a trust, there are still plenty of questions for your solicitor.

2. When you decide to purchase, the bank assesses your current position

After the above is confirmed, the bank then reviews your current position based on your...

●      Deposit

●      Income (note if Child Support, is not set up through IRD, banks may not use this in you income calculations)

●      Debt levels

3. Talk to a financial expert sooner rather than later

We specialise in helping people navigate all the layers of property acquisition. We can answer questions like: What is happening in the housing market? How do I make an offer? Can I use KiwiSaver?

There are a lot of moving parts, so have a conversation with us when you know a decision needs to be made around your current property(s), let us lower you anxiety, and bring you one step closer to inner peace!*

*Lance does not have the ability to bring you inner peace.

Lance Shearman is a Registered Financial Adviser with Velocity Financial. No investment decision should be taken based on the information in this blog alone. A Disclosure Statement is available free of charge upon request.