Separation Case Study

Dividing Property After Separation With a Coordinated Swap

Client Profile & Scenario

Location

An owner-occupied home in South Morang 3752 and an investment property in Bell Park 3215.

Situation

A separating couple with a shared home, an investment property and some investments to divide under their separation agreement.

Challenge

Transferring the South Morang home to the wife and the Bell Park investment property to the husband, with each borrowing in their own right.

The Challenge

Dividing property after a separation means two loans, two transfers and two people who may not want to share every detail. In effect, each party was buying the property designated to them from the other, so both needed finance approved in their own right and both needed their matters handled with discretion.

The Strategy & Key Considerations

Before either transfer began, Loanworx built the deal around three key considerations.

Separate Representation

Acted for each party separately, keeping conversations and documents discreet.

Borrowing in Their Own Right

Assessed each applicant individually, so each new loan stood on its own.

One Conveyancer for Both

Used the same conveyancer on both properties to keep documents and timing aligned.

Execution & Results

1

Step 1

Pre-Approval in Their Own Right

Secured a pre-approval for each party in their own name before either transfer began.
2

Step 2

Debt Consolidation

Consolidated a debt as part of the wife’s application so she could service her new loan.
3

Step 3

Purchasing From Each Other

With both pre-approvals in place, each party purchased the property designated to them in the agreement from the other.
4

Step 4

Both Purchases Executed

Loanworx and the shared conveyancer executed both purchases together.
Step 5

Stamp Duty Waived

Stamp duty on both transfers was waived, as the parties were still married and the transfers formed part of a court-ordered separation.

The Outcome

Both Properties Transferred. The wife took the South Morang home and the husband took the Bell Park investment property, each with finance in their own name, as set out in their separation agreement and with no stamp duty on either transfer.

Two

Properties transferred under one agreement

Stamp duty on the transfers

One

Conveyancer for both properties

Key Takeaway

In a sometimes chaotic environment, a property split runs smoothly when both parties are willing to work together, and one conveyancer for both properties makes it much easier. Loanworx is well placed to handle these transactions because we understand the situation and have done it many times.

Related Resources

Separating And Dividing Property?

Talk to a Loanworx broker in confidence. We’ll arrange finance in your own name and work alongside your conveyancer.

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This case study is general in nature. Outcomes and stamp duty treatment depend on individual circumstances and lender criteria.

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