NSW Property Settlement - Paying Joint Debts After Separation?

[DavidA2014]

Hello, just wanting to get some help as to whether I will get credit for the personal loan repayments that I am continuing to pay post separation and up to property settlement? The loan is in joint names. However, my ex is refusing to contribute any amount.The loan was used to consolidate our credit cards when we were together.

Also, the only 'net assets' available to extinguish this loan is the equity in the family house which she is living in and paying interest only. She is refusing to progress the property settlement or mediation.

Thank you.

 

[Rod]

Unless things have changed in since my divorce some years ago, the answer is no.

The court didn't want to know how much I had paid post separation and before settlement. They just looked at what was available at the time of settlement.

Cost me quite a few thousand dollars as I tried to do what I thought was the 'right' thing by my ex, banks, utility companies. In the end, my extra contributions made no difference whatsoever.

One option is just to stop paying and wait till partner is forced to take action by bank/others.

Your ex will continue doing nothing while you continue to 'support' her. One thing I learnt was that there is nothing you can do to stop unreasonable people being unreasonable.

Hard to make a recommendation on what to do as much more is involved like impact on credit rating, kids, etc.

 

[DavidA2014]

Thanks for this information and sharing your experience, I really appreciate it. I'm learning to drop those battles I cannot win. I have negotiated with the banks and they have helped to some extent (lowered repayments for a period), but I don't want to have a bad credit rating so I have no choice but to make the repayments. I could push for the sale of the house, but this will adversely affect the kids.
Thanks again though, this has helped.

 

[sammy01]

I was in a similar situation. The only thing that got the ball rolling towards getting an agreement around assets and child access was when I stopped paying for everything. I was paying the mortgage, rates, electricity etc. She was living comfortably. But as the other poster stated, you're unlikely to have any $$$ returned to you because you kept up payments. Arguably, you should be paying half of the mortgage, but stuff that.

Look as far as bad credit rating goes again, I wouldn't worry. I stopped paying the mortgage, it fell thousands into arrears. Eventually, it got paid, but in the meantime, the added pressure motivated my ex to accept that the house had to sell and she had to compromise.

The end result, I got 5 nights a fortnight and we got a negotiated outcome. But as far as my credit rating goes, 3 years on and I've bought a house using the same bank that I defaulted on for nearly 12 months...

 

[DavidA2014]

Thank you for this. It's good to know there is light at the end of the tunnel.