Quick answer
Family law settlement finance helps one partner buy out the other, refinance a jointly held loan or release cash from a property after a separation or court orders. Timing is often tight and finances are stretched. Ownright Custom Finance arranges settlement-related loans Australia-wide, including private options when banks move too slowly.
Key points
- Common uses include buying out a former partner or refinancing a joint loan
- Consent orders or court orders usually set the timeline
- Income may have changed after separation, which lenders must assess
- Private finance can bridge the gap when a bank needs more time
- Suits
- Separating or separated partners settling property
- Security
- Usually the family home or other property
- Key evidence
- Orders or agreement, property details, income
- Australia-wide
- Yes
What is family law settlement finance?
Family law settlement finance is a loan used to carry out the financial side of a separation. The most common version is one partner buying the other out of the family home: a lender provides the money, the other partner receives their agreed share and the home is refinanced into one name. Other versions include refinancing a joint loan, funding a property transfer, paying out a lump sum to a former partner or covering costs while a sale goes ahead.
It is a delicate area. People are dealing with emotion, deadlines and income that has changed overnight. A broker’s job is to keep the lending side clear and calm, and to work closely with your solicitor so that the money arrives when the paperwork says it must.
When do people need this type of finance?
- Buying out a former partner’s share of the family home
- Refinancing a joint loan into one name
- Paying a lump sum required by consent orders or a court order
- Keeping the home after separation when the other party wants to sell
- Funding a deposit on a new home before the old one is sold
- Releasing equity from a property that will be shared
Each of these has a different timeline and risk. A buy-out with six months to complete is a very different job from a lump sum due within weeks.
How do lenders assess a settlement loan?
Your income. Lenders assess you alone, because the other party will no longer be on the loan. Income that was shared across two people may now need to carry the whole debt.
Child support and maintenance. Some lenders count these payments in part, often if there is a history of receipt and evidence it will continue. Others do not count them at all.
The orders or agreement. The lender needs to see what has been agreed, who is paying whom and when.
The property. Value, type and location. Lenders may require a valuation.
Credit history. Joint debts that remain, and whether they have been paid on time through the separation.
| Question | Why it matters |
|---|---|
| Can one income carry the loan? | The most common point where bank approvals stall |
| Is the buy-out amount fixed by orders? | Gives the lender a firm figure to lend against |
| Who stays on the existing loan? | A release of liability needs the lender’s agreement |
| Is there a deadline? | Decides whether a bank or private route is realistic |
What if the bank is too slow?
Bank assessments can take weeks, and separations rarely wait politely. If a court order or agreement sets a settlement date, a private loan secured against the property may bridge the gap, with a plan to refinance to a bank later. That route usually costs more than a mainstream loan and has its own conditions, which we explain plainly. Our page on property settlement finance covers the private side, and the guide on how fast private lending can settle sets out realistic expectations: it depends on the lender, the security and how quickly documents arrive.
What about tax and duty on property transfers?
Transfers between former partners can trigger questions about capital gains tax and state or territory duty. The ATO explains the relationship breakdown rollover, which may defer capital gains tax on certain transfers made under a court order or qualifying agreement, and state revenue offices explain their own concessions. These are matters for your accountant and solicitor. We keep our focus on the loan, and we are glad to work with your advisers so the finance and the legal steps line up.
How does Ownright approach settlement finance?
Ownright Custom Finance is built to find solutions when the straightforward route is blocked. Trevor Scott has more than forty years in finance, and the team has the patience for sensitive situations. We work Australia-wide, and we talk to your solicitor when you wish.
We start by understanding the deadline and the numbers. We then look at whether a bank can meet the timeline, or whether a short-term private loan is a better first step with a refinance later. Our home loan refinance and cash-out refinance pages explain the mainstream routes.
Illustrative example
An illustrative couple has agreed that one partner will keep the home and pay the other a set sum within a fixed period. The remaining partner earns a steady income, but the bank needs more time than the agreement allows. A broker arranges a short-term private loan secured by the home, with a plan to refinance to a mainstream lender once the paperwork and the new income history are in place.
Mistakes to avoid
- Waiting until the deadline is close before talking to a lender
- Assuming a joint loan can simply be moved into one name
- Overlooking a lender’s rules on child support and maintenance
- Agreeing to a buy-out figure without checking you can borrow it
- Leaving your solicitor and broker out of touch with each other
Documents to have ready
- Consent orders, court orders or the signed agreement
- Property details and a recent loan statement
- Payslips, tax returns or business financials
- Bank statements
- Evidence of child support or maintenance, if relevant
- Identification
Our how to refinance when your bank says no guide gives more background on alternatives.
How long does a settlement loan take?
It varies. A straightforward refinance into one name with a cooperative lender can run on a normal bank timeline, which is often a few weeks once documents are complete. A private loan may be faster, though speed depends on the lender, the security and how quickly documents arrive. The real driver is usually paperwork: signed orders, valuations, release of the other party and identification. Starting early, even before the final orders are made, lets us map what will be needed and which lender fits.
What if my income has dropped since the separation?
Many people find their income looks different after a separation. A part-time job, a career break or a business in transition can all affect borrowing power. Lenders look at the income that exists now and how stable it is. If it is thin, options include a smaller buy-out, a longer term, a guarantor or a private loan that relies more heavily on the property while income recovers. Our guide on what is loan serviceability explains how the test works. An honest look at the numbers early is kinder than a surprise decline close to a deadline.
Can the family home be kept?
Often yes, but it depends on the numbers. Keeping the home means the remaining partner must refinance the whole loan and pay out the other’s share, with income that carries it alone. Where that stretch is too tight, some people choose to sell, split the proceeds and buy something smaller. Others keep the home with help from a guarantor or a short-term arrangement. We lay out each path without pushing any of them, so the choice stays yours, made together with your solicitor.
Need finance to settle after a separation?
Sounds like you’re looking for family law settlement finance that respects the deadline and the situation. We’re the lending experts in property settlement lending, so click the button and see if you qualify. Or ring 03 7043 7233 and we will listen first.
How it works, step by step
- 1
Step 1
Tell us what the agreement or orders require and by when.
- 2
Step 2
We work out how much needs to be borrowed and whether one income can carry it.
- 3
Step 3
We approach lenders suited to the timeline, including private options if needed.
- 4
Step 4
We coordinate with your solicitor so funds are ready for the settlement date.
Frequently asked questions
Can I borrow to buy out my former partner?
Often yes, if your income can support the loan on its own and the property has enough value. The lender needs to know the buy-out amount, usually set by an agreement or court order, and will assess you as a single borrower. Timing and paperwork are the main hurdles, and we help with both.
What if the court orders a deadline I cannot meet with a bank?
A bank assessment can take longer than a deadline allows. In some cases a private lender can move faster, often secured by the property, with a plan to refinance later. Speed depends on the lender, the security and how quickly documents arrive. Discuss the deadline with your solicitor and us early.
Does a lender need to see the consent orders?
Usually, yes. Lenders want to see the agreement or orders that set out who keeps what, who pays whom and by when. They rely on them to confirm the borrower's entitlement and the amount needed. Your solicitor can provide the documents, and we tell you which version each lender accepts.
Will a lender count child support or spousal maintenance?
Some lenders count these payments, often with conditions such as a minimum time of receipt or evidence that they will continue. Others discount or exclude them. We check the lender's policy for your payment type and explain how it affects what you can borrow.
Can I be released from a joint loan after separating?
Sometimes, by refinancing the loan into one name, which requires the remaining borrower to qualify alone. The lender needs to be satisfied about income, credit and the property. A release of liability is different from an agreement between you and your former partner, so legal advice is useful.
Are there tax issues when property is transferred after separation?
There can be. The ATO has a relationship breakdown rollover that may defer capital gains tax on certain transfers under a court order or binding agreement, and state duty rules vary. Your accountant and solicitor should confirm what applies. We focus on making the lending work around that plan.