The Pros and Cons Of Buying A House Before Divorce
Finding a place to live in after separation is one of the many challenges of going through a divorce. You might choose to live with friends and family or rent a house to move in temporarily. However, one of the first things that crosses the minds of estranged couples is buying a house before the divorce is finalized but after separation.
This solution might appear straightforward but on deeper analysis, is one that is fraught with potential financial, legal, and emotional implications.
This post will take you through the many aspects to consider about buying a house before a divorce or whether it is safer buying a house while divorcing.
Is It Advisable To Buy A New Property Before Finalization Of Divorce
Buying a house and entering the real estate market can appear to be a fresh start but ask yourself first whether you are prepared to cross the many hurdles that come with it. If you study the matter carefully, you will find that it is best buying a house while divorcing or after a divorce is finalized.
The main reason for this is that after a final settlement is made and your divorce is finalized, all financial issues will have been sorted out. You will have clarity about the division of assets, pensions, and all other financial matters including likely additional expenses arising from child maintenance and alimony. You will thus get a clear picture of your financial standing and know the kind of property you can look for and how much you can afford.
Whatever may be your decision in this matter, take the advice and guidance from experienced real estate professionals and legal counselors in this matter. We at Just Livin Realty have helped many separated couples or those who are on the verge of finalizing a divorce smoothly navigate the tricky waters of real estate. Give us a call to learn more.
Pitfalls Of Buying A House Before Divorce
When you are on the verge of separation and planning to move out of your marital home, it is a big step in the divorce process. It is a choice that will not only impact you emotionally but your family and children as well.
If you are buying a new house before divorce and you move out with the children, it will greatly impact them. After coping with the tensions and the arguments, adjusting to a new place with new people around them in school or the neighborhood can be extremely challenging.
However, the legal implications can be overwhelming. When finalizing the divorce decree and division of family finances by the court, all assets including those purchased after separation before divorce may be counted as family assets. This is just like a home sale before divorce where the proceeds will be divided equally. This means that you must disclose information about buying a home before divorce. Hence, consult a legal professional before dealing in real estate during the divorce process.
Tips For Buying A House Before Divorce
It is not easy to buy a house given the complexities of legal documents and contracts to understand and sign. Hence, going through the process is a daunting task. To make things easy for you, give a call to Just Livin Realty. Our experts will get in touch with you and help you navigate through the process of buying a house.
Here are some practical tips to follow that will smoothen the house-buying activity before the divorce.
- Evaluate your current and possible future situation: Before deciding to buy a house, critically evaluate your present and future financial situation. Check your savings, income, credit score, and existing debts. Based on the current scenario of your total income and expenses, estimate what your future expenses might be.
After the divorce decree comes through, you might be further burdened with child support or alimony. These possibilities will be counted by lenders while calculating the debt-to-income ratio and will lower your chances of getting a mortgage loan. It is not easy paying mortgage, insurance, and taxes on a single income. All these aspects will also come up when you are buying a house while divorcing.
- Hire professionals for assistance: Hire experienced professionals to advise you on buying a house after separation. Seeking the help of a financial advisor is important. They will guide you on how the purchase of a home will impact your financial health and give you details of the finance options available at this juncture.
The same goes for hiring a family lawyer who can advise you on the legal implications of buying a house on separation before the final divorce decree.
Finally, contact realtors who will handhold you through the various aspects of buying a house before a divorce. Call Just Livin Realty for more information in this regard.
- Check your needs and create a budget: What type of home do you need? Will you be staying alone or will have the children with you? Do you need the same space as your marital home? Based on the approximate prices, create a budget. The average downpayment for a loan is 20% and you should have that much in hand. Your debt-to-income ratio should be around 30 to get a mortgage loan.
You must also have the required income to not only make the mortgage payments but also the annual insurance and taxes.
Once all these questions have been answered, get in touch with us and we will show you multiple homes that match your requirements.
While there are multiple things to consider when buying a house before the divorce, the all-important part is to ensure that your financial foundation is not so badly affected that it bothers you long into the future. Hence, it makes sense to wait for buying a house while divorcing or after the decree so that your ability to buy a house becomes clear.
Contact us at Just Livin Realty when you enter the real estate market to buy a house.