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The latest Australian Bureau of Statistics data shows 49,158 divorces were granted in 2025, equivalent to around 135 a day and up 4.1 per cent on 2024.
Aussie senior mobile broker Samantha Harvey said that as the median duration of marriage before separation had also risen to 9.4 years, financial arrangements and mortgages were creating increasing challenges after a relationship breakdown.
“The recurring issue is usually that people simply don’t know what their options are,” she said.
“Can I afford to keep the house? Can I buy my ex-partner out? Do we need to sell? And if we keep the property together for a while, will I still be able to move on and buy somewhere else?”
Borrowing capacity the issue
Harvey said the three most common post-break-up financial outcomes were selling the property, continuing to co-own it temporarily, or refinancing into one name, with each option presenting its own complications.
Refinancing, for instance, would only work if the remaining borrower could qualify for the loan alone, Harvey explained.
“It’s also not always as simple as taking over the existing home loan. If you’re buying out your former partner, you may need to refinance the existing debt as well as borrow additional funds to pay out their agreed share of the equity,” Harvey said.
“A mortgage that worked comfortably across two incomes can look very different when you’re trying to service it on one.”
While some borrowers may opt to sell for a clean break, Harvey noted that this wasn’t always the preferred or immediate option.
“There are plenty of reasons people might not want, or be ready, to sell straight away. They might want to renovate first, wait for a better time to sell, keep some stability for the kids or simply need some breathing room before making another big decision,” Harvey said.
Separating couples can instead keep the existing property until the time is right, but Harvey said this option is also fraught with challenges.
“With many lenders, even if you and your ex-partner are each paying half, the lender may still include the entire mortgage commitment when assessing your borrowing capacity for your next property,” Harvey said.
“But lender policy really matters here. Some lenders have what’s commonly referred to as a common debt reducer policy. If you can demonstrate that the other person is responsible for and servicing their share of the debt, the lender may be able to take that into consideration when assessing your borrowing capacity.
“It’s a great example of why understanding different lender policies can make such a difference. The same person, with the same income and the same debts, can potentially get a very different borrowing result depending on how a lender assesses their situation.”
Money plays a part in separation
Research has shown that money isn’t just a problem before break-ups, but can also be a factor in them.
According to new research from financial comparison site Finder, 2.5 million Australians have either ended a relationship or had one ended because of their financial situation.
The research found that 5 per cent of Australians have been dumped for having low income or savings, 4 per cent due to their level of debt, and 2 per cent because of their poor understanding of personal finances.
Four per cent of Australians said they had been the one to end a relationship for financial reasons.
[Related: Till debt do us part: Brokers flag money splits in joint loans]
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