can be a complicated time, and because finances can be confusing and tight following divorce, in some cases it can be a mistake to spring for a new home. But all too often, even in cases where the money is there and a new home is within your grasp, failing to address issues that arise during a divorce can turn your new dream home into a financial nightmare.
Things to Consider Before You Purchase a Home
- Is your name still on your mortgage for your marital home? Especially when divorces are amicable, the parties may find that the hassle of having your home refinanced without one party’s name on the mortgage to be not worth the time, or perhaps the name change is delayed based on current housing market conditions. While it may seem prudent to wait to take your name off of the mortgage, you should not. There are ways that your finances, namely your credit, can be ruined if you do not remove your name in a timely manner. What if your ex-spouse cannot pay for the home? That could hurt your credit and make it harder for you to get a new home. And if your ex can’t afford it ”“ what happens if they file for bankruptcy, and the creditors force the sale of the home? Again, sayonara to your credit score, even if you have been divorced for years.
- What does your credit look like? Your job history? Will your mortgage interest rate be too much?
- Are you financially able to deal with the up-front costs of a new home? Down payment, home inspection, appraisal, closing costs, moving costs ”“ think it through before you commit, and have some money set aside for the unexpected.
- Are you willing to sacrifice amenities to get a home with a price that is within your range?
As much as you may want to move into a new home to begin your new life, it may not be financially feasible. Keep your expectations tempered, and consider a transitional apartment or condo if the numbers do not line up for a new mortgage.
The services of a Denver divorce attorney can help you plan for your financial future after divorce.