Separating does not change your obligations to the bank. If both names are on the mortgage, both of you remain fully liable for the whole repayment, regardless of who moved out, who stays in the house, or whose behaviour ended the relationship. The bank is not a party to your separation, and a missed payment damages both credit files equally.
So who should pay?
There is no single legal rule; it is worked out practically and then balanced in the property settlement. Common arrangements include the person staying in the home covering the mortgage while the other covers their own rent; splitting the repayment while both incomes recover; or, where one party earns substantially more, that party carrying it short-term. Whatever you agree, put it in writing and keep records, because post-separation payments count. A party who has carried the mortgage alone since separation will generally have that recognised as a contribution in the final property division.
If the mortgage cannot be paid
Talk to the bank early. All major lenders have hardship provisions and can pause or reduce repayments while a settlement is negotiated; a hardship arrangement is vastly better than default. If the home will clearly have to be sold, an orderly agreed sale almost always beats a forced one. And if your ex is refusing to contribute while blocking a sale, the court can make interim orders, including for sale of the property or exclusive occupation.
Watch the redraw and the offset
A redraw facility or offset account attached to the mortgage is accessible cash. In a deteriorating separation, funds can vanish from these accounts overnight. If you are concerned, ask the bank about requiring both signatures for redraws, and get advice quickly; moving to protect these funds is a routine and often urgent step we take for clients.
Frequently asked questions
I moved out. Do I still have to pay the mortgage?
To the bank, yes, if your name is on the loan. Between you and your ex, your contributions from here will be accounted for in the settlement, so keep records of everything you pay.
My ex stopped paying their share. What can I do?
Protect your credit first by keeping the loan current if you can, then recover the imbalance through the settlement. If it is unsustainable, hardship arrangements and interim court orders are available.
Can I make my ex leave so I can rent out the house?
Not unilaterally if they have a legal or equitable interest. Exclusive occupation is a matter for agreement or a court order.
Under mortgage pressure right now?
This is one of the most urgent and fixable problems in separation. A 90-minute consultation gives you a plan for the mortgage, the redraw and the endgame for the house. Use the enquiry form just below, or call (02) 4210 9288. Garrison Lawyers acts for clients across Wollongong, Shellharbour, Kiama, the Illawarra and the Shoalhaven.
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This article is general information only, current at the date of publication. It is not legal advice and does not take your circumstances into account. For advice about your situation, speak with a family lawyer.