A Brighter Future Is Within Your Reach

A Brighter Future Is Within Your Reach

Should I buy a new house during my divorce?

On Behalf of | Jan 18, 2023 | Divorce |

Divorcing a spouse means your life will change in many ways. Quite possibly, you will no longer live in your marital home. You might want to progress into your post-divorce life more quickly by buying a new house while still married to your spouse.

According to Smart Asset, purchasing a new home before completing your divorce is possible, but it involves certain considerations. You should be aware of whether you can finance a new house and if your marital relationship will complicate your efforts.

The state of your finances

Purchasing a new home involves the same homebuying steps of making a down payment and qualifying for a mortgage. Given that your divorce will divide your marital assets, you should determine if your diminished financial situation will be enough to make regular mortgage payments.

Also, your credit score should be in good shape. This will help you qualify for a mortgage and get the best terms possible. However, if you still share the debt of your spouse through your marriage, your credit score might take a hit until your divorce separates the debt of your ex from your own.

Your relationship with your spouse

Buying a new home before your divorce is complete could mean your wife or husband will retain an ownership interest in whatever residence you purchase. You might avoid this problem by having your spouse sign a quitclaim deed. This will transfer full ownership of the new home to you.

However, it is possible your spouse will refuse to sign over any ownership interest. If so, you might have to wait for the completion of your divorce before getting a new place to live. Weigh your options carefully to avoid potential complications from buying a new house too soon.