It is not easy to buy a house during a divorce and with little information on the rules; you might be making a big mistake. Take caution by getting relevant information first. Here are tips to buying a house during a divorce.
1. Check rules on asset division and property agreements
Buying a new house before finalizing on divorce on proceedings might be disadvantageous since they might limit your ownership of the home. It is best that you first prove that the new house is a separate property. Check the rules within your state with regard to asset division to protect your house.
If possible, come to an agreement with your spouse with regard to ownership interests that will discourage them from rights to the house. The agreement should be signed by a judge as well as you and your spouse. Konicek Law explains that divorce may affect your right to the homestead property significantly.
2. Determine the date of separation
The date that you and your spouse separated is important before closing on your new house since the court might think your new house falls under the marital property. Any marital property is considered divisible in a divorce and this might be unfavorable on your part.
3. Find out how much you are left with
There are several things to consider and changes to be made when you buy a house. It is always advisable to find out if there are things that you cannot do such as furnishing your new home. Once something like the closure of credit card accounts is in place, this can limit your access to funds that you might need to furnish your new house. Find a solution before moving to a new house.
4. Consider your source of funds
Before buying a house during a divorce, you first need to identify your source of funds. Some states consider both spouses’ income when it comes to house purchase. This is from the date you married to the date you separate. In case this is the case with your divorce, your spouse might legitimately claim your new home.
It’s always better to use funds that are separate which include those you had saved up before marriage or inherited. If you must buy a house on your own, you will have to reduce your expenditure to cater for the cost.
5. Seek court approval first
The court plays a huge role when it comes to divorce-related matters. Seek the court approval of sale when buying a home and divorcing first. Find out from your lawyer whether you need court approval to buy a home while divorcing. It will not remain a secret that you bought a new house and your spouse might use it against you. Get approval for the purchase from the court and once the order is issued; this will protect you against claims by your spouse.
The best person you can receive advice from with regard to buying a house during a divorce is your attorney. A credible and experienced attorney will know how best to advise you about the enforcement of court orders with regard to divorce. He will also direct you on what should be done or shouldn’t be done.
Salman is a prolific environmental writer, and has authored more than 500 articles in reputed journals, magazines and websites. He is proactively engaged in creating mass awareness on renewable energy, waste management, sustainability and conservation all over the world.
Salman can be reached on salman@cleantechloops.com
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