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Can I Afford A Home After Divorce?

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Woman with piggy bankYou’re headed for divorce and it’s clear that you won’t be keeping the marital home. Your family’s dual income has dwindled to a single income and you are looking for a new place to live. How do you know if you’re able to afford purchasing a new home?

The first thing you’ll want to look at is your new budget. Usually, it is best not to make such a big decision as buying a house without waiting for some time to really get adjusted to your new standard of living. If you are very well off, have acquired valuable assets in your divorce or have a substantial number of liquid assets, this can speed up your decision to buy ”“ but you probably should not dive headfirst into a new home so soon after divorce.

You should also review all of your financial obligations. After divorce, you should have had all of your joint accounts split from your spouse and your name taken off of any other joint agreements, such as your old mortgage. However, some couples fail to do this. You should review your credit report to ensure that you have made a clean break from your ex-spouse, otherwise his or her actions could hurt your buying prospects. Reviewing your credit report is especially important if your ex-spouse was the family breadwinner, as it will give you an idea of whether you have enough credit history to purchase a house.

The Denver divorce attorneys at Divorce Matters can help you ensure that your financial future is secure following divorce.