What Happens When Your Ex Refuses to Pay the Mortgage?

What can you do when your ex-spouse refuses to contribute to the mortgage?

Unfortunately, it is very common during separation and property settlements for one partner to be unable or unwilling to continue paying their share of the mortgage. Understanding your rights and responsibilities is essential so you can protect your financial position.

When your ex won’t pay their share of the mortgage, the most important thing to understand is that the bank can still pursue you for the full amount. Even if you agreed to split repayments, lenders do not recognise private arrangements, which means missed payments can quickly affect both credit scores and may lead to arrears. This situation is common when a partner is not paying half the mortgage, but there are steps you can take to protect yourself.

Understanding Joint Mortgage Liability

Who pays the mortgage after separation in Australia? When a mortgage is in both names, both parties remain legally responsible for the full repayment. If your ex stops paying:

  • It can damage both parties’ credit scores
  • The lender may still pursue you for missed payments
  • You may face foreclosure
  • There may be long-term financial consequences

Even if you move out, you remain responsible for the mortgage while your name is still on the loan.

Likewise, if you move out before a property settlement is finalised, you do not lose your entitlement to your share of the property. Leaving the home does not reduce your legal interest in it.

This means that having both names on the loan equals full responsibility for both parties. The lender does not consider separation, who lives in the home, or who agreed to pay what. From the bank’s perspective, you are each responsible for 100% of the debt.

Recommended Initial Steps

If your ex has stopped paying, consider the following:

  • Document all missed repayments
  • Communicate in writing with your ex about the mortgage issue
  • Contact your lender to discuss available options — most banks have a financial hardship team and, where relevant, a family violence support team.
  • Ask your lender whether temporary hardship arrangements or reduced repayments are available.
  • Start collecting bank statements, mortgage records, and communication history with your ex to support your position.

What Can a Lender Do if You Are Behind on Your Mortgage?

Even during separation, lenders must follow proper steps before they can take possession of your home. However, the consequences of missed payments can escalate quickly.

1. Default Notice

A lender can issue a default notice as soon as a repayment becomes overdue, though some wait until the loan is 90+ days in arrears.

Depending on the banks policies, the notice usually gives you approximately 30 days to catch up on missed payments, plus the regular repayment. You can still apply for a hardship variation during this time.

2. After the Default Period

If you do not remedy the default, your lender may issue a Statement of Claim (or summons), beginning legal action to recover the entire loan amount.

You will have a set number of days to file a defence or lodge a dispute with an external dispute resolution scheme.

If you do nothing, the lender may pursue repossession of your home. The lender does not consider who was meant to pay. They follow the loan contract only. Whether your ex refuses to contribute or is unable to pay, the bank treats both parties as equally responsible.

Contact a lawyer immediately if you receive a Statement of Claim or summons.

3. Eviction

If the lender obtains a court order:

  • You may receive a Notice to Vacate or a Sheriff’s letter
  • A Warrant for Possession may be issued
  • The Sheriff can evict occupants and change the locks

Repossession does not release you from your debt. The lender may sell the property and, if any debt remains, take further action to recover the shortfall — including pursuing other assets.

Scenario Examples

  • Ex refuses to pay: Your ex chooses not to contribute, and arrears begin to build. You may need legal advice or interim orders to protect your position.
  • Ex cannot pay: Financial hardship, illness, or job loss prevents your ex from making contributions. You may need to negotiate temporary arrangements with both your ex and your lender.
  • One partner pays 100%: If you take over all repayments, keep records, these may later be recognised as unequal contributions in the property settlement.

What Not to Do

  • Do not stop paying the mortgage without speaking to your lender and lawyer.
  • Do not rely on verbal agreements with your ex.
  • Do not ignore default notices or letters from your lender.
  • Do not assume the situation will resolve itself during settlement without taking action.

What Are Your Options With Your Ex?

Potential arrangements may include:

  • Agreeing to continue paying the mortgage together until reaching a final property settlement
  • Agreeing to sell the property and informing the lender. Banks may show greater flexibility if they know repayment will occur upon sale
  • Agreeing that one party will buy out the other (if financially viable)

If you cannot reach an agreement, you may need to apply to the Court for interim orders such as:

  • One party buying the other’s share and refinancing
  • The home is being sold to a third party
  • The higher-income earner pays the majority of the mortgage in the short term

Seek early legal advice so you understand your obligations and options if a partner is not paying half the mortgage

Partner Not Paying Half of the Mortgage? Talk to Ramsden Family Law

If you are dealing with this situation, our experienced family law specialists can provide clear advice and practical steps to protect your interests.

We understand the complexities of property settlements and joint mortgage liability and offer tailored legal support based on the circumstances of your matter. Ramsden Family Law has a strong track record in resolving family law disputes and guiding clients through the financial issues that arise during separation. Our services include:

If you are facing difficulties with joint mortgage repayments or a related family law issue, contact Ramsden Family Law today. Your family’s future is our priority, and we are here to support you. Learn more about our team, expertise, fees, and more by booking a consultation.

Frequently Asked Questions

Do I Still Have to Pay if I Move Out?

Yes. Moving out does not remove your name from the mortgage, and you must continue contributing to repayments until the loan is refinanced, sold, or otherwise formally changed with the lender. This often surprises people asking who pays the mortgage after separation in Australia, but your legal liability continues regardless of where you live.

Can I Force My Ex to Contribute?

You cannot force your ex to pay directly through the bank, but you may be able to negotiate an agreement or seek interim court orders requiring your ex to contribute. These payments can also be considered later when determining the final adjustment of assets.

Can Unpaid Contributions Be Adjusted in a Property Settlement?

Yes. If you have been paying more (or all) of the mortgage because your ex refused or was unable to contribute, this may be taken into account as a post-separation financial contribution. This can potentially increase your entitlement in the overall settlement.

Book a consultation with Ramsden Family Law.