Separation and divorce can change over time. We are seeing more families adopt a nesting approach, where the home is maintained, the children live in the home and the parents may come and go every week. Needless to say, this suits families who are amicably separating. Domestic Violence, and addictive behaviour can really upset a delicate balancing arrangement such as nesting.
For some people this can work, for others, they can only experience real separation when the financial ties are cut, and new boundaries are put into place.
Let’s have a look at the pros and cons of a nesting family trying to apply for finance:
- Running costs for a house which may be in joint names – can affect any future finance application
- Ex may not contribute their share of expenses, which can be very stressful
- Consideration of equity in the home, if used for future property purchases, or even refinancing
- Change of relationship – new partners may not be ok with the nesting approach, in an emotional and financial sense
- When do the kids leave home, as you could be still nesting when the kids are 30 and you are reaching retirement. Lenders now have an category expense for support of adult children
- The house will increase in value, if you own the property. Maintenance of the house needs to be discussed
- The family remain relatively undisturbed
- Children with special needs can be cared for and it may suit those who do not handle change well
So there is lots to consider, and many more which I may not be aware of as well.
So if you are considering making this change and would like to know where you stand for your next finance application, please call 0403 211 361 or email hello@georgefinancialservices.com.au
