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Easily buy a home during a divorce with a deposit bond
What is a deposit bond for divorce or separation?
What it isn’t
- A home loan
- A bank guarantee
- Expensive
- Full of red tape
What it is
- A deposit guarantee
- Secure as cash
- Legal and trusted
- Widely accepted
Going through a separation or divorce can be distressing, especially when it comes to finances and housing. If you’re looking to start fresh with a new property, a deposit bond can help make that happen.
A deposit bond acts as a guarantee to the seller that the deposit will be paid at settlement, giving you the flexibility you need during this difficult time.
It’s that simple.
Some common questions we get asked about buying a property when going through divorce
Can I buy a property during divorce?
Yes, buying a home during divorce is absolutely possible. But it’s not always straightforward.
Many people find their funds are tied up in shared assets, and navigating the legal and financial logistics of this can slow everything down.
That’s where deposit bonds come in. They help bridge the gap so you can move forward with confidence.
Can I buy a house while separated but not divorced?
You can.
Buying a home during separation before the divorce has been finalised is possible.
However, it’s essential to get legal advice to make sure your purchase aligns with any existing financial agreements or court orders.
How deposit bonds can simplify buying a home during divorce or separation
During a divorce or separation, it’s common for equity and savings to be tied up in your current property. A deposit bond helps you secure your next home without needing a large upfront cash deposit.
Whether you’re buying at auction or through a private sale, a Deposit Power bond acts as a guarantee to the seller that your deposit will be paid at settlement. This means you can:
Secure your new home without needing immediate access to a large sum of cash
Buy before you sell your current property
Move forward with your life faster
Avoid borrowing additional funds during an already financially stressed time
When buying a home during separation or divorce, deposit bonds gives you breathing room so you can make smart housing decisions without added financial pressure.
Find out if you qualify for a deposit bond today.
How property settlement affects buying a new home
Tied up in your family home that’s yet to be sold
Part of investments or assets still being divided
Needed for immediate living expenses
Inaccessible until court proceedings conclude
Property settlement during divorce often creates a catch-22. You need funds from your settlement to buy a new home, but you also need somewhere to live while waiting for that settlement to finalise. This timing mismatch causes significant stress for many people going through separation.
These financial implications make the standard cash deposit requirement particularly challenging when buying a home during a divorce.
Typically, your funds may be:
How Deposit Bonds work during property settlement
A deposit bond bridges the gap between your current finances and your property settlement. It gives you a way to buy a home after divorce or during settlement without waiting for your cash to clear. Think of it as a temporary stand-in for your deposit that’s paid at settlement, once your finances have been sorted.
Deposit bonds can be a lifesaver if you’ve found the perfect place but don’t yet have access to your share of joint assets.
Here's how it works:
- You apply for a Deposit Power bond for the amount required by the seller (typically 10% of the purchase price)
- Approval is instant and the digital bond will be delivered to your device within minutes
- Present the QR deposit bond to the vendor or seller and use it instead of cash when signing the contract of sale
- You only pay the full deposit amount at settlement, by which time your property settlement may be complete
Deposit bonds are great for both parties involved in the divorce. You can secure your new home without liquidating assets prematurely, and negotiations regarding your shared property can proceed without the pressure of urgent housing needs.
It’s truly that easy.
Key challenges when buying a property during divorce
Asset division
During divorce, determining who gets what can be complex and time-consuming. Your funds might be temporarily inaccessible while:
- Valuations of shared assets are conducted
- Negotiations between parties take place
- Court decisions are pending
In many cases, a deposit bond allows you to proceed with your property purchase without waiting for the division of assets.
Legal considerations
Buying a home during divorce requires careful navigation. It’s essential to:
- Ensure any property purchase complies with existing court orders
- Consider how a new property might affect final settlement arrangements
- Understand the implications for any existing mortgages or debts
Always seek legal advice before proceeding with a property purchase during divorce. Deposit bonds provide flexibility but don’t eliminate the need for proper legal guidance.
Emotional stress
The emotional toll of divorce is significant. Making major financial decisions during this time can be overwhelming. Deposit bonds help reduce financial stress by:
- Eliminating the pressure to liquidate assets quickly
- Giving you breathing room to make thoughtful decisions
- Allowing you to focus on emotional wellbeing instead of scrambling for funds
- Simplifying one aspect of an otherwise complex and overwhelming process
The benefits of Deposit Power’s deposit bond when buying a home during divorce or separation
Purchase with confidence
Secure your next home even if your finances are still being sorted out through proceedings.
No upfront cash needed
Avoid the stress of coming up with a large deposit during an already tough time.
Buy before you sell
Lock in your new place before your current home is sold.
Keep your savings intact
No need to dip into investments or savings to pay a deposit.
More time and flexibility
Buy now and finalise the details of your divorce settlement later.
Less paperwork
A simpler option than a bank guarantee, with fewer hoops to jump through.
Look ahead, not back
Focus on your fresh start without stressing about deposit funds.
Learn more about how deposit bonds work and take the next step towards your fresh start.
Eligibility criteria deposit bonds when going through a divorce or settlement
If you’re buying a home during divorce or separation, you might qualify for a Deposit Power bond through two main pathways:
Option 1
The Fast Track
This is ideal if you can show you have the funds to complete the purchase. You will have to provide documents like:
- A home loan approval letter
- Recent savings or bank statements
- Proof of a financial gift (e.g. from family)
It’s a straightforward option for short-term bonds (up to 6 months).
Option 2
Home Equity Assessment
Even if your funds are tied up in a shared property or investments, you may still qualify using the equity in your current home or other assets. This pathway is helpful if you’ve retained or co-own property with substantial equity, and don’t want to liquidate assets or take on extra debt.
The exact equity requirements will depend on the amount of the bond and the term needed.
Divorce and separation deposit bond FAQs.
How much does a deposit bond cost for someone going through a divorce?
Deposit Power bonds have a simple one-time fee, based on how much you need and how long you need it for. There’s no interest, no repayments and no hidden costs.
How quickly can I get a deposit bond while going through a divorce or separation?
Deposit Power bonds are issued almost instantly.
You’ll receive approval right after you apply.
Your digital deposit bond will be delivered to your device within minutes.
Are deposit bonds a good idea?
For those navigating property transitions during a separation or divorce, deposit bonds provide a practical solution. You can purchase new properties quickly without the need for large upfront deposits, making it easier to manage shared assets.
They give you flexibility, reduce the need for additional debt, and help you act fast when the right property comes up.
What documents do I need to apply for a deposit bond during a divorce?
Getting a deposit bond for buying a home during divorce or separation is straightforward. Deposit Power offers flexible options to suit your situation, whether you need a short-term bond for a quick move or something longer while you wait for your property settlement to finalise.
The documents you’ll need depend on the type of bond you’re applying for, but in most cases, you’ll need to show ID and provide proof that you’ll be able to afford the property when it settles.
Flexible support when you need it most
Ready to move forward with buying a home during divorce or separation? Deposit Power can help you navigate this challenging time with greater financial flexibility.
Have a look at our First Home Buyers options if this is your first independent purchase, or learn more about how deposit bonds work to get started today.