A common question when people are going through divorce is the treatment of a mortgage in the property settlement.
When a property settlement is prepared, all the marital assets are added up. The liabilities including any mortgages are then subtracted from this amount. This determines the net assets available for distribution.
In some divorce matters, we find that one partner has increased a mortgage without the knowledge of the other partner. We also find that some partners have forged their partners signature in order to increase the loan or mortgage amount. In these cases, we recommend that you discuss this with your family lawyer.
It’s important that mortgage repayments are maintained whilst going through a divorce, otherwise there is a risk that the financier will foreclose on the property or additional costs will be incurred which will decrease from the eventual property settlement.
Rushmore Forensic can assist you with preparing a property settlement for the family court. Please contact us for a complimentary and confidential discussion of your circumstances.
About the Author
Andrew Firth is a forensic accountant based in Sydney. He is an expert valuer and specialises in reconstructing financial records and valuing businesses in litigation. If you have a divorce, commerial dispute or other forensic enquiry, Andrew would be happy to discuss this with you.
Rushmore Forensic have offices in North Sydney and Baulkham Hills. They regularly conduct forensic accounting and valuation work across Australia and internationally.