Divorcing during the Sunshine Coast's Housing Crisis?
One of the most common causes of divorce is financial strain – and in many relationships, the biggest investment is the family home. Deciding what to do with the family home is always difficult at the best of times, but when the property market is volatile like it is today, it makes the decision even harder.
Here are some of the things you might have to consider when divorcing during a housing crisis on the Sunshine Coast.
To Sell or Not to Sell
In 2021, house prices on the Sunshine Coast increased by more than 50% in some suburbs. This was led by people who were moving interstate from NSW and Victoria predominantly, taking advantage of relaxed COVID restrictions. This is good news for couples who want to sell simply to make a profit (or an easy divorce settlement), but on the other hand, it’s not so good for those who want to be able to buy another home with the proceeds.
Let’s say you bought your marital home for $500,000 in 2010. Now you can sell it for $800,000. You’ll pay off your mortgage and have a little leftover (that you may need to split with your ex), but your chances of getting the same sort of property for the same price are going to be limited.
If you sell it and rent, you’ve lost the stability or “retirement fund” that owning a house creates. Not only that, but median rents on the Sunshine Coast are also at an all-time high, increasing over 30% in some areas.
On the other hand, the decision to sell the marital home can give emotional comfort and closure for some separating couples, regardless of the financial consequences, relieving emotional stress of still being tied to someone you are no longer in a loving relationship with.
Property Settlement in a Volatile Market
Property settlement is not just about selling your home. It also relates to ALL the items you and your partner have purchased, own, or have earned during your relationship. It includes vehicles, superannuation, money, investments, shares, jewellery, and other assets. And generally, all of this is split between you when you separate.
Your home is just one part of it, but it’s an important one. And if you’re not sure whether you should consider property settlement for your Sunshine Coast home, it’s best to ask for the right advice. You shouldn’t jump into anything, and given the property market in 2022 is volatile, you might be better off waiting until things calm down a bit.
If you’re starting the process of divorce and considering property settlement, you’ll want to speak with divorce lawyers. Sunshine Coast divorce specialists, Divorce Hub, can help guide you each step of the way.Get in touch.
This article is for general information only. For legal advice, please get in touch with the professional divorce lawyers at Divorce Hub.