Separation Finance: Buying Out Your Partner — What You Need to Know

By Jason Given · 2026-05-06 · 8 min read

The core challenge: refinancing in your name alone

When a relationship ends, one of the most common financial questions is: can I keep the house? The answer is usually yes — if you can refinance the mortgage in your sole name and fund your ex-partner's equity share. The process is more achievable than many people assume, but it requires careful preparation.

How the buyout calculation works

The starting point is a current property valuation. An independent valuer assesses what the property is worth today — not what you paid for it, and not what you think it is worth.

From there, the calculation is straightforward:

• 1.Current value — Set by independent valuation — both parties typically agree on the valuer or engage separate valuers and average the result.
• 2.Net equity — Value minus outstanding mortgage balance and any selling costs (agent fees, legal costs) that would apply if sold.
• 3.Partner's share — Their ownership percentage applied to net equity. In most de facto and married relationships, this is 50% unless a different split is documented.
• 4.New loan amount — Existing mortgage plus the payout amount. This is what you need to refinance in your sole name.

Example: Property value $850,000. Mortgage $450,000. Net equity $400,000. Ex-partner's share (50%) = $200,000. New loan required = $650,000.

What lenders assess

Lenders assess a sole-name separation refinance the same way as any other loan — but the challenge is that your income may now be lower than when the original joint loan was approved.

Factors that help: rental income from staying in the property, child support received, any new employment income. Factors that create hurdles: reduced hours, career breaks, or a loan amount that has grown.

The legal framework — Consent Orders and stamp duty

A separation property settlement should always be formalised through either a Binding Financial Agreement or Consent Orders filed with the Family Court. This is your family law solicitor's domain — not ours.

But there is an important intersection: in South Australia, stamp duty exemptions apply to property transfers between separating parties when Consent Orders are in place. On an $850,000 property, that exemption can save $20,000–$35,000. Getting the legal paperwork right is not just about protection — it is financially significant.

What happens to the existing mortgage during settlement

During the settlement process, the existing joint mortgage typically continues. Both parties remain legally responsible until the refinance is complete. It is important that repayments continue being made — missed repayments affect both parties' credit files, regardless of who is living in the property.

Lendology coordinates with your solicitor to time the refinance settlement with the legal settlement, minimising the period of uncertainty.

If you cannot service the loan alone

This is the hardest scenario — and the one where specialist advice is most valuable. Options include:

• 1.Family guarantee — A parent or sibling goes on the loan as security, allowing you to qualify with a lower income.
• 2.Extended loan term — Reducing minimum repayments by extending from 20 to 30 years can bridge a serviceability gap, with the option to pay extra when finances stabilise.
• 3.Deferred settlement — An agreement where the property is held jointly for a defined period (often until children finish school) and then sold — proceeds divided at that point.