When a relationship breaks down, there are often a number of practical issues you will need to consider. For example, what will the new living arrangements be? How will you and your former partner meet expenses that you previously shared?
There can be a lot of uncertainty in separation, particularly when it comes to finances.
When deciding about living arrangements, you and your former partner should discuss who will remain living in the property and how those costs will be shared. Where parties have separated amicably, they might decide to live separately under the same roof, sharing joint expenses as you previously did but no longer living together as a couple. However, this does not work for all couples and more commonly, one party will remain living in the joint property and one will move out into a rental or other accommodation.
Where you and your former partner jointly own property, you need to reach agreement about how any outgoings for that property will be met, including mortgage repayments, rates, utilities and insurances.
Whilst generally these outgoings are in joint names or are shared, it may be that you do not have the capacity to contribute the same amount towards these outgoings if you are also meeting rental repayments as a result of your separation.
Any capacity to meet joint outgoings will depend on your financial circumstances including your income and expenses following a separation. Relevant considerations also include whether you and your former partner share children and the care arrangements for those children. For example, it may be that one parent is unable to support themselves without assistance as a result of their caregiving responsibilities. The free government moneysmart budget planner is a helpful tool to utilise when reviewing interim expenses.
Whilst you may be concerned about the prospect of meeting joint outgoings without receiving the benefit of actually living in the property, payment of joint outgoings may be taken into account in a property settlement as post-separation contributions.
Where you and your former partner are unable to reach agreement about the payment of joint outgoings (and who remains in the former matrimonial home), you can make an application to the Family Court. Usually the Court will require evidence of what the joint outgoings are, your respective financial circumstances and any reasons in support of one party remaining in the former matrimonial home.
If you are unsure about your obligations to meet joint expenses following your separation, or if you are unable to reach agreement with your former partner and need advice about next steps, it is worthwhile consulting a specialist family lawyer. To arrange an appointment with one of our family lawyers, please complete the enquiry form below or call us on (02) 6225 7040 or email at info@rmfamilylaw.com.au, or get started now online.