The Property Academy Podcast How to rebuild your wealth after divorce⎥Ep. 2028
Mar 31, 2025
They walk through rebuilding finances after divorce using a listener’s $1.2M proceeds as a case study. Topics include choosing between buying a long-term family home or renting and investing, rental property allocation and leverage, and strategies to become mortgage-free for retirement. They also cover working longer, withdrawal rules, safety margins, and practical steps to protect kids and cash flow.
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Mary's Divorce And Short Term Housing Need
- Mary is a 51-year-old in Auckland going through a divorce expecting about $1.2m after settlements.
- She needs a 4-bedroom home short-term for kids (one in high school, others at university) and will likely work until 70.
Divorce Usually Reduces Your Net Share Below Half
- Divorce often doesn't result in a 50/50 split after costs; legal fees and selling timing mean you may get ~40% net of prior joint wealth.
- That converts a previously comfortable ~$2.5m household net worth into a materially smaller single-person lump sum.
Prioritise Mortgage Free Retirement Home And Short Term Four Beds
- Prioritise a mortgage-free home by early retirement and secure a four-bedroom for the short term to keep kids accommodated for ~3–4 years.
- Plan to downsize once the kids leave to reduce long-term housing costs and free capital.