This article is for general information purposes only and reflects the state of information at the time of publication. It is not legal or financial advice. Always seek professional advice tailored to your specific circumstances before making decisions.
Relationship breakdowns are hard on everyone, particularly when property is involved
During such an emotional time, financial missteps can occur that may have long-term implications. Here are some of the biggest property mistakes people make when a relationship ends and how to avoid them.
Trying to sell under the radar
In the heat of a relationship breakdown, people can act irrationally, sometimes attempting to sell their joint property without informing their ex-partner. This is almost guaranteed to backfire, as an agent cannot legally sell a property without the approval of all owners.
Rushing to sell
The urge to move on quickly can lead to a hasty sale. While a speedy off-market sale might seem appealing, a proper campaign—even four weeks—can often achieve a stronger result. It’s always best to avoid rushing major real estate decisions, especially during emotional times.
Disclosing the breakup to potential buyers
Property buyers can often sense if something is amiss, such as empty rooms or cleared-out furniture. When selling, it’s important to present the property at its best. If necessary, consider hiring furniture to maintain a neutral and appealing look. Also, advise your selling agent not to disclose personal circumstances to buyers to help achieve the best sale outcome.
Buying a new house too quickly
After selling, resist the temptation to immediately buy another property. Take time to reassess your short- and long-term housing needs, especially if children are involved. Renting temporarily may be an ideal option while considering a move to a new neighbourhood.
Not paying your fair share of the bills
Even during a breakup, financial responsibilities remain. Stopping mortgage or bill payments is unwise and can create further complications. Arrears affect your credit, and banks may intervene, potentially leading to a stressful mortgagee sale that could lower the sale price. Avoid making financial decisions that could negatively impact your future.
