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Thinking about buying out your partner after a separation? It’s a big decision—financially and emotionally. Whether you’re trying to stay in the family home or keep things stable for the kids, this guide will walk you through the legal, financial, and personal angles—so you know exactly what to expect.

We’ll cover the key steps, including preparing your finances, negotiating the buyout terms, and completing the legal and financial transactions.

To learn more about how to calculate buying someone out of a house in Australia, watch the video below or read on for our detailed guide.

How To Buy Someone Out Of A Mortgage

When separating from a partner and deciding what to do with a shared home in Australia, there are usually three main options:

Buyout: One partner buys the other’s share of the house and becomes the sole owner.
Sell and Split: Sometimes it’s easier to just sell the house and divide the money. This gives both people a fresh start.
Keep Owning Together: In some cases, couples choose to keep owning the house jointly even after splitting up. This might be temporary or long-term

Here are some things to think about with each.

Buyout

Can you afford to pay the other person’s share and handle the mortgage alone?
Do you want to stay in the home for emotional reasons or to keep things stable for kids? While this is important, be careful you’re not sacrificing too much financially for emotional reasons.
Does the property work for your long-term plans? Staying could be good if you want to remain in the area.

Sell and Split

Selling gives both people a clean break financially and emotionally. It splits things simply and fairly.
Consider whether the housing market is good for selling now.
Think about where you’ll live after selling – will you have enough money to buy or rent a new place?

Keep Owning Together

Keeping the house could provide consistency for kids. It could be temporary until selling is better. However, this can be messier and more difficult to manage.
If the market is bad for selling, waiting and co-owning allows more time.
If you choose this option, make sure you have agreed on a clear plan for selling the home or buying out your partner’s share of the house.

Making Your Decision

There’s no one-size-fits-all option. Get input from lawyers, financial advisors, and real estate agents to understand your full situation. Think about budgets, emotions, and future plans. This is a big choice for your money and well-being, so consider carefully!

How The Family Law Act Influences The Property Split When Buying Out Your Ex

If you’re planning to buy your ex-partner out of a shared home in Australia, it’s easy to assume everything will be split 50/50. But in reality, property settlements during a separation—whether you’re married or in a de facto relationship—are guided by the Family Law Act 1975.

That means your final property split might not be equal, especially if one person contributed more or has greater future needs.

Understanding how the Family Law Act works can help you calculate a fair buyout amount and avoid surprises during negotiations.

What Does "Just and Equitable" Really Mean?

The Family Law Act focuses on making the property split just and equitable, not necessarily equal. That means the court (or your legal team) will look at a range of factors before deciding who gets what share of the home.

Even if you’re not going to court, most lenders and lawyers will want to see that your buyout arrangement reflects these legal principles—especially if you’re refinancing the mortgage in your name.

Let’s look at the key things the law considers.

1. Financial Contributions

This is usually the starting point. It includes things like:

Paying the house deposit
Making mortgage repayments
Covering major renovations or upgrades
Paying rates, utilities, or insurance

If one person contributed more financially, that might increase their share of the equity.

2. Non-Financial Contributions

The Family Law Act also values unpaid efforts, such as:

Maintaining the home (repairs, gardening, cleaning)
Supporting your partner’s career or studies
Acting as the primary homemaker

Even if you didn’t earn an income, your contributions to the household still count.

3. Parenting and Homemaking Contributions

If one partner took time off work to care for children or managed most of the home duties, that’s also considered a significant contribution. These roles often impact future earning potential—and that’s factored in.

4. Future Needs of Each Partner

This part looks ahead. The law considers:

Your age and health
Your income and job security
Whether you’ll be the primary carer of any children
Any other financial obligations or dependants

For example, if you’ll have full-time care of the kids, you may be entitled to a larger share of the equity to support long-term stability.

5. Length of the Relationship

In long-term relationships, the courts usually treat most assets as shared, regardless of who paid for what. But in shorter relationships, direct contributions (like who paid the deposit) may carry more weight.

Why This Matters for Your Buyout

Even if you and your ex agree on the numbers privately, banks and lawyers may still ask for a financial agreement or court order that reflects the Family Law Act’s principles. If your agreement seems unfair, the bank may reject your refinancing application—or it could cause problems down the track.

Understanding these factors can help you:

Avoid underpaying or overpaying during the buyout
Strengthen your refinancing case with the lender
Finalise the property transfer smoothly and legally

Step-by-Step Buying Someone Out Of A House

Step 1. Initial Preparation

If you decide that buying your ex’s share of the home is best, here are some key things to do first:

Get Your Finances in Order

Talk to a mortgage broker to review your budget and what you can afford.
Look at your income, expenses, savings, loans, and more. This helps you know if you can handle the buyout.
Discuss options to get money for the buyout, like using savings or getting a loan.

If you’d like us to review your situation, our Brisbane mortgage brokers can help. Contact us for a free assessment or give us a call on 1300 088 065

Have the Home Valued

Get an independent certified valuer or agent to formally value your property. This is vital for calculating your ex’s share.
The valuation considers recent area sales, the home’s condition, market trends, and more. This info helps both the buyout and your future investment.
Make sure the valuer understands the local market and has valued similar homes before.

Learn About Your Mortgage Options

If you have a joint mortgage, talk to your lender or a broker about putting the loan under just your name.
They’ll check if your income, credit, and obligations allow you to qualify for a new loan.
Explore different products to see what loan terms may suit your new situation best.

After organising your finances, having the property valued, and researching mortgages, you’ll be in a better position to move ahead with the buyout process.

Step 2. Negotiating the Buyout

After getting your finances straight and having the property valued, the next big step is negotiating the buyout details with your ex. This can be tricky, but having some support in place helps.

Communicate Openly and Fairly

Have honest talks about what you both want and expect. Listen carefully to understand your ex’s views.
Any deal absolutely must be fair for both people—consider legal rights and emotional connections.
Remember, this impacts both your futures in big financial and emotional ways.

Get Professional Help

Mediators facilitate talks, offer neutral advice, and guide you through disagreements.
Legal advisors make sure deals follow all laws properly and formalise contracts.
Many couples use both mediation to negotiate and lawyers to finalise agreements.

Set Things Up for Success

Have all budget information, property valuations, etc. handy for fact-based talks.
Be prepared to compromise on some wishes and keep your expectations realistic.
Know that this process can be lengthy and emotional. Respect and patience matter.

Balancing openness, fairness, and professional support can lead to a buyout contract that works for both people—setting you both up for brighter futures.

Step 3. Completing the Buyout

After agreeing on the buyout terms, you need to formalise everything legally and financially:

Transfer Ownership Legally

Use a conveyancer or lawyer to file paperwork to shift ownership from both names to just yours.
A conveyancer or property lawyer handles filing the right documents properly.
They’ll organise a settlement date to finalise legal and financial transactions.

Refinance Your Home

If you have a joint mortgage, you’ll need to refinance in your name only. This releases your ex from the loan.
The lender decides if you can afford the full mortgage based on your finances.
Discuss the new loan’s rate, repayment period, and other terms with the lender.

Document Everything

Draft a contract outlining every buyout detail, like amounts and timelines.
Have your lawyer review to ensure it is binding and protects you.
Both of you sign the needed paperwork and file it with authorities.
Keep copies of all documents related to the buyout.

Completing all legal, financial, and paperwork steps ensures a smooth transition to become the property’s sole owner.

How To Calculate Buying Someone Out Of A House

Understand How Home Equity Works

A key piece is deciding how much money your ex gets in the buyout. This depends on the home’s total equity and valuation.

Equity means how much of the home you fully own, not counting any mortgage debt.
To get the equity, first find the property’s current market value. Then subtract what is still owed on the mortgage.
For example: a $500K home with a $300K mortgage has $200K equity.

How Valuation Impacts Equity

The market value can shift a lot based on market conditions, nearby sales, the state of repair of the home, and other factors.
So you need an independent, certified valuer to consider location, size, age, trends, and other things.
If the valuation has increased since purchase, there is likely more equity to split, and more owed for a buyout.

Getting the equity and valuation right is vital for figuring out a fair buyout amount to offer your ex for their share.

We’ll look next at exactly how to calculate this.

Factors that affect the buyout price

The buyout price involves more than basic math. Things like mortgages, home upgrades, and housing markets change the calculations.

Mortgage Amount Left

The remaining mortgage owed directly lowers the total equity to split.
Example: An $800K home with a $300K mortgage has $500K equity to divide. One partner’s $250K share is more than if the mortgage was $500K, leaving only $300K equity.
If you refinance the mortgage yourself, the new loan also impacts budgets.

Home Improvements

Upgrades and renovations can raise the property value, increasing the equity and buyout price.
Keep paperwork on big home projects to show valuers to justify higher prices.
But some outdated redos, like old kitchens, may not boost value much now.

Shifting Housing Markets

Property values rise and fall a lot based on demand, economy, and many other reasons.
Current market conditions greatly sway valuation timing—sellers’ markets differ from buyers’ markets.
Local changes like new construction or businesses affect value, too.

Considering every factor that impacts the equity is key to getting to a fair buyout amount. This helps make sure your ex gets their fair share.

Case Study 1: Buying Out the House – Married Couple in Melbourne

Sarah and James bought a 3-bedroom house in the outer suburbs of Melbourne in 2019 for $720,000. In 2025, it’s been valued at $880,000. They still owe $420,000 on the mortgage.

Sarah wants to stay in the house with their two kids. That means she needs to buy out James’s share of the equity.

Here’s the breakdown:

Current property value: $880,000
Remaining mortgage: $420,000
Equity in the home: $880,000 – $420,000 = $460,000
Each person’s share (assuming 50/50 split): $230,000
Sarah’s buyout amount: $230,000

Sarah refinances the loan to $650,000 (existing $420,000 + James’s $230,000 share). With a binding financial agreement and court order, she avoids stamp duty on the transfer. She also pays legal fees ($3,000–$5,000) and refinancing costs (~$1,500).

Case Study 2: Unit Buyout – De Facto Couple in Brisbane

Daniel and Mia were in a de facto relationship and bought a 2-bedroom unit in Brisbane in 2021 for $520,000. By 2025, it’s valued at $590,000. They have $360,000 left on the home loan.

Daniel wants to keep the unit and buy out Mia’s share.

Here’s how it looks:

Current property value: $590,000
Remaining mortgage: $360,000
Equity in the property: $590,000 – $360,000 = $230,000
Each person’s share (50/50 split): $115,000
Mia’s buyout amount: $115,000

Daniel refinances to $475,000 to cover the existing mortgage and Mia’s share.

They use a consent order from the Family Court, which means no stamp duty is payable.

Total extra costs (lawyer + refinance + valuation): around $5,000.

Tax Implications Of Buying Out Your Partner

When you buy out your partner’s share of a property, it’s not just about refinancing. You also need to consider the tax consequences—especially capital gains tax (CGT) and stamp duty.

The good news? In most family law settlements, you can avoid major tax hits—as long as the transaction is handled correctly.

Let’s break it down.

Capital Gains Tax (CGT)

In a relationship breakdown, CGT can be deferred if the property transfer happens under a binding financial agreement or court order.

Here’s how it works:

You won’t pay CGT at the time of the buyout.
Instead, the cost base of the property transfers to the person keeping the home.
If you later sell the property, CGT is calculated based on the original purchase price.

Important: If you don’t use a legal agreement or court order, CGT could apply immediately.

Stamp Duty When Buying Out Jointly Owned Property

In most Australian states, you won’t pay stamp duty if:

The property is being transferred due to a separation, and
You have a binding financial agreement or Family Court consent order.

This exemption applies to married, de facto, and same-sex couples. Check your state’s rules—stamp duty laws vary slightly between NSW, VIC, QLD and other states.

Other Tax Considerations

Rental properties have additional CGT implications.
If the property was your main residence, it’s likely CGT won’t apply on future sale.
Talk to a tax adviser to avoid costly mistakes.

Breakdown Of Fees And Costs When Buying Out Your Ex

Buying out your ex involves more than just paying their share of the home. Here’s a full breakdown of the key fees and costs you’ll need to factor in:

Property Valuation Fee – You’ll need a formal valuation to determine the current market value of the home. This helps calculate how much you owe your ex. Valuations typically cost between $300 and $600 in Australia.
Legal Fees – You’ll need a solicitor or family lawyer to draft the settlement agreement. This ensures the buyout is legally binding. Legal fees range from $1,500 to $5,000, depending on complexity of the case.
Refinancing Costs – If you’re refinancing the home loan under your name, the lender may charge fees. These can include loan application fees, settlement fees, and discharge fees. Expect to pay around $600 to $1,200 in total.
Stamp Duty (Sometimes) – In many cases, stamp duty is exempt if the transfer is court-ordered or part of a family law settlement. But if it’s not, stamp duty can be a big-ticket cost, especially in states like NSW or VIC. Check your state’s laws or speak to your conveyancer to confirm.
Court Order or Consent Order – To avoid stamp duty and make the split legally enforceable, you might need a consent order or binding financial agreement. These can cost between $1,000 and $3,000, depending on your lawyer.
Title Transfer and Registration – You’ll need to update the title to remove your ex’s name. This is a straightforward process but comes with state-based fees. In most states, expect to pay between $200 and $400.
Mortgage Insurance (If Applicable) – If you refinance and your loan-to-value ratio (LVR) goes above 80%, lenders mortgage insurance (LMI) may kick in. LMI can add thousands to your loan. It’s best to check with your broker before committing.
Loan Break Costs (Fixed Loans Only) – If your current home loan is fixed, breaking it early can attract penalties. These vary by lender and the remaining fixed term. Always ask your lender for a payout figure before refinancing.

Pros and Cons Of Buying Out Your Ex-Partner Out Of The House

Buying your ex out of the home can feel like a win, but it’s not always the right move. Let’s break down the pros and cons so you can make a confident decision.

Pros of Buying Out Your Ex

You keep the family home – You won’t have to pack, move, or uproot your life. The kids stay in familiar surroundings, which helps with stability. It also gives you emotional closure by staying in a space that still feels like home.
No need to sell and move. Selling involves agents, open homes, and negotiation. When you buy your ex out, you avoid that stress altogether. It’s a smoother, more private transition.
Kids stay in a familiar environment. Children often cope better when they stay in the same home. School runs, local friends, and routine stay intact. It reduces disruption during an already emotional time.
You avoid costly selling fees. Selling a house comes with real estate commission, marketing costs, and legal fees. A buyout skips all of that. You save thousands and avoid the hassle.
You gain full control of the asset. Owning the property outright means full say over what happens next. You can renovate, refinance, or sell when you want. No more joint decisions or negotiations.
You avoid open homes and agents. Let’s face it—open homes can be awkward and exhausting. A buyout removes the stress of public viewings. You skip straight to the next chapter.
You protect long-term capital growth. If the property is in a growth area, keeping it could be a smart financial move. You retain full benefit from any value increase. Over time, this could significantly boost your net worth.
No need to agree on sale price or timing. Selling often leads to disagreement over the right time or price. A buyout keeps things simple and fast. You set your timeline and move at your pace.
You maintain stability after separation. A home is more than bricks—it’s a foundation. Keeping it offers emotional and financial stability. That’s vital after a major life change.

Cons of Buying Out Your Partner From The House

You need to qualify for the loan solo – Banks assess your income and debt without your ex’s help. This can make it harder to borrow the full amount. You may need a larger deposit or strong credit to qualify.
You may have to pay stamp duty – Some states charge stamp duty, even when buying out a partner. Exemptions do exist, but only under certain conditions. Legal advice helps you understand what applies to your situation.
You might need a court order or agreement – Lenders often ask for a legally binding financial agreement. This protects both parties and outlines who gets what. It can take time and money to arrange.
You could take on more debt – Buying your ex out means taking over their share—and their mortgage. Your repayments may rise sharply. It’s important to budget carefully before jumping in.
You may refinance at a higher interest rate – When you refinance, your new rate might not match your old one. You could end up paying more over the life of the loan. It’s worth comparing lenders carefully.
The process can trigger emotional stress – Dealing with separation and money isn’t easy. Negotiating buyout terms can reopen old wounds. Having a calm advisor makes a big difference.
You may lose access to shared equity – Buying your ex out means giving up any benefit from their share. If the property goes up in value later, they won’t share in the profit. But neither will you benefit from their financial input anymore.
A property valuation is still required – You’ll need a formal valuation to determine how much to pay. This can cost time and money. And sometimes the value may surprise both of you.
It can be hard to agree on what’s fair – One of you may feel entitled to more. Valuations, emotional ties, and financial contributions often clash. That’s why having a mediator or legal support can help.

Here’s a quick look at the pros and cons in table format

Pros	Cons
You keep the family home.	You’ll need to qualify for the loan solo.
No need to sell and move.	You may have to pay stamp duty (in some states).
Kids stay in a familiar environment.	You might need a court order or binding agreement.
You avoid costly selling fees.	You could take on more debt than you’re used to.
You may gain full control of the asset.	You may have to refinance at a higher interest rate.
Avoid the stress of open homes and agents.	The process can trigger emotional stress.
You protect long-term capital growth.	You may lose access to shared equity.
No need to agree on sale price or timing.	A property valuation is still required.
You maintain stability after separation.	It can be hard to agree on what’s “fair.”

Need Help Deciding?

Buying out your ex can be a smart move—but only if the numbers stack up. At Hunter Galloway, we help Australians just like you understand the pros and cons based on your unique situation.

Let’s run the numbers and help you move forward with clarity. Call us on 1300 088 065 to start your free loan assessment now.

Jurisdiction Matters: Why Your State Affects The Buyout Process

When it comes to property settlement, where you live matters. That’s because stamp duty, title transfer rules, and legal processes vary between states. Even though family law is national, each state has its own requirements and paperwork. Here’s a quick guide to what you need to know in your state or territory.

State	Stamp Duty on Property Buyout	Land Title Office	Key Considerations
NSW	Usually exempt with court or consent order	NSW Land Registry Services	Must submit Form 01T and supporting court orders to avoid stamp duty. Local conveyancer highly recommended.
VIC	Exempt with Family Court orders	Land Use Victoria	Transfer must be part of a binding agreement or court order. Include valuation and evidence of relationship breakdown.
QLD	Exempt if done under a legal property settlement	Queensland Titles Registry	Form 1 and Form 24 required. Stamp duty exemption applies only with proper documentation.
SA	Exempt with valid court order	Land Services SA	Consent or financial agreement must be registered. Stamp duty relief isn’t automatic.
WA	Exempt with Family Court or consent order	Landgate	Must lodge court documents with Form T2. Settlement agents can assist.
TAS	May qualify for exemption	Land Titles Office TAS	Limited exemptions—court orders must be clear and final. Always check with a lawyer first.
ACT	Exempt with sealed orders	Access Canberra	Property transfer must clearly relate to separation. Lodgment fees still apply.
NT	Exempt if ordered by court	Land Titles Office NT	Ensure family law documents are legally binding. Exemptions assessed case by case.

Frequently Asked Questions About Buying Out a Partner After Separation

Here are the top questions we get asked when someone is looking to buy out their ex-partner’s share of a property.

Can I buy my partner out without selling the house?

Yes, you can buy out your partner without selling the house. You’ll need to refinance and pay them their share based on a property valuation. Legal agreements, such as a consent order or binding financial agreement, are strongly recommended.

How is the buyout amount calculated?

The buyout amount is usually based on the property’s current market value. You subtract the remaining mortgage and split the equity according to your legal arrangement. A licensed valuer can help you get an accurate figure.

Do I need a lawyer to buy out my partner?

Yes. A family lawyer ensures everything is legally binding and tax-smart. You’ll also need them if you want to qualify for stamp duty exemptions or avoid CGT issues.

Can I use a guarantor to help buy out my ex?

Absolutely. If you don’t qualify for the loan on your own, a family guarantor can help you meet lender requirements. This is a common option for single parents or one-income households.

Do I have to pay stamp duty when buying out my partner?

Usually not—if the transfer is part of a relationship breakdown and formalised through a consent order or binding financial agreement. Rules vary by state, so always check with your broker or lawyer.

What if my ex doesn't agree to the buyout?

You may need to apply to the Family Court for a property settlement. The court can order the transfer of property or force a sale. Try mediation first—it’s faster and less costly.

How long does the process take?

Buying out a partner typically takes 6 to 12 weeks. This includes getting a valuation, securing finance, and finalising legal paperwork. Delays often happen if there’s disagreement over the property value or settlement terms.

Can I buy out a unit instead of a house?

Yes. Whether it’s a house or a unit, the process is the same. What matters most is the property value, your borrowing power, and the legal documentation.

Will my credit score be affected?

If you take on a new mortgage, lenders will assess your credit history. If you’ve missed payments during separation, it could impact your loan approval. Talk to your broker early to avoid surprises.

Can both partners stay on the loan?

No. In a buyout, one partner refinances the loan in their name only. The other is removed from both the title and the loan, which helps cleanly separate your finances.

Can I Afford to Buy Out My Partner After Separation?

Yes, but it depends on your borrowing power and current income. Lenders assess your ability to make repayments on your own, including any child support or spousal maintenance. Boost your chances by reducing other debts, increasing your deposit, or getting a guarantor. Always speak to a mortgage broker early—they’ll show you your realistic options before applying.

What If I'm Not on the Property Title—Can I Still Buy Them Out?

Yes, you can—being off the title doesn’t always mean you lose your share. If you contributed financially or lived in the home, the Family Law Act may still entitle you to part of the property. You’ll need a lawyer to help you formalise the arrangement through a binding financial agreement or court order. Once that’s done, the bank can refinance the loan in your name.

Key Takeaways And Next Steps

Splitting up and buying out a shared home involves weighing options around money, legal issues, emotions, and the future.

Main Things to Remember

Evaluate all alternatives thoughtfully – buyout, sell, or continue owning together.
Prepare thoroughly – get professional advice, understand legal processes, organise finances.
Negotiate fairly and legally with mediators and lawyers.
Calculate the buyout amount, considering all factors that influence value.
Handle emotional, tax, and forward-planning aspects holistically.

Get Professional Support

Because this is complicated, advice from financial, legal, tax, and real estate professionals is highly recommended. They can tailor guidance to your situation for the best decisions.

How Can We Help You?

With the right information and balanced approach, the property buyout process after separation can have fair and positive outcomes for everyone.

At Hunter Galloway, we offer a free assessment to understand your specific needs and provide expert recommendations. Going through this alone is hard, so let our experienced team help guide you.

Unlike other mortgage brokers who are just one-person operations, we have an entire team of experts dedicated to helping make your home loan journey as simple as possible.

If you want to get started, please give us a call on 1300 088 065 or book a free assessment online to see how we can help.

How To Calculate Buying Someone Out Of A House In Australia

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