Volume #58: 6-Step Process to Make Separation a Little Less Painful

Read Time: 4 minutes

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Click here to download the 6-Step Guide.

Click here to Book a Call with Sarah.

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INTRO – Why brokers need to care

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Roughly 50 % of marriages end in divorce. Managing the split is not your job as a mortgage broker, yet knowing the legal road keeps you top-of-mind when clients are ready for their next purchase.

The golden rule: urge them to speak with a separation lawyer early so money, custody and the sale plan are nailed before the agent’s photos hit Trade Me.

Take John and Sally. Their three-bed in Manukau failed at auction. Forced to live together while relisting, John chased top dollar, Sally just wanted out. Every extra week meant rising costs and climbing legal fees.

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PROBLEM – When the family home turns into a tug-of-war

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Without a signed, certified Relationship Property Agreement (RPA) sale proceeds are frozen in trust and banks usually refuse bridging finance.

Stress spikes, and our mutual clients can start pointing the finger at us!

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RISK – Equity on ice, clients on edge

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1. Financial: Equity sits locked until lawyers finish the split.

2. Emotional: Living together post-split can get toxic fast.

3. Professional: If funding collapses on or before settlement day (because you did not follow the correct process), your credibility cops it.

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CONTEXT – What actually happens to the family home?

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• The home is almost always relationship property and is split 50 / 50, no matter whose name is on the title.
• One partner may buy out the other to keep kids stable. If that is not possible, the house sells and cash waits in trust until paperwork is watertight.
• Counsellors say move out for sanity, many property lawyers say stay put so both sides feel pressure to settle. Clients should decide only after a legal chat.
• To make any separation agreement binding, full and final, each party must receive independent legal advice from separate law firms, and both lawyers must certify the RPA before signing.

Standard conveyancers cannot draft the RPA. That takes a specialist team.

Enter Clean Break.

About - Clean Break

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SOLUTION – The BREAK(S) roadmap

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Send clients to Clean Break before they re-list their home. Their tiered fixed-fee framework turns chaos into check-boxes:

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B – Begin

What happens: Separation consult plus a courtesy note to the ex’s lawyer

Broker win: Confirms both sides are on board.

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R – Records

What happens: Swap bank, KiwiSaver, trust and company docs.

Broker win: You see early if equity covers the next loan.

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E – Evaluate

What happens: Agents, valuers or accountants price the assets.

Broker win: Sets a realistic list price.

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A – Agree

What happens: Lawyers hammer out who gets what.

Broker win: Stops last-minute fights over proceeds.

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C [K] – Contract

What happens: RPA signed and certified, locking it in.

Broker win: Banks release funds on settlement.

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S – Settlement

What happens: Buy-out or sale settles 10-15 working days later.

Broker win: Smooth hand-off to your usual property lawyer.

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Clean Break wraps it all in one transparent package and guides clients with the BREAK(S) checklist. Clients stay civil, deals keep moving.

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TL;DR – Quick wins for busy brokers

• Separation sales stall when a certified RPA is missing.
• Push clients to call a separation lawyer—Clean Break—before the listing goes live.
• Use BREAK(S) to forecast settlement dates and dodge frozen equity.