 |
- You may want to take your name or your ex’s name off the mortgage: If you’d like to buy a home and your ex is living in the home you co-own, then your ex should try to refinance in his or her name. Doing this will decrease the debt in your name and increase your chances of getting a mortgage. What happens if your ex can’t refinance in their name? If you want to see your ex and the kids stay in the home for awhile, then continue to stay on the mortgage and co-own the home with your ex. If you are going to continue to co-own, attempt to work out the details about how the profits are split once the home is sold. The split may not be 50/50 either, depending on if one spouse is making the majority of the mortgage payments and/or putting money into the home.
- Don’t purchase a home during the divorce proceedings: It can be a challenge for a person paying alimony to buy a home. Lenders look at alimony like debt; for example, if a person makes $10,000 a month and gives $3,000 a month to their ex, lenders don’t consider the person to be making $7,000 a month-instead they view it like a $3,000 car payment that is made every month.
- Where should you live during the divorce proceedings?: If you aren’t selling the home right away and you are both looking for a place to rent, then there are two common situations. One option is to stay in the home with your soon to be ex; more and more couples are choosing this option since it saves both partners money. Another benefit besides saving money while living together is that if the relationship remains civil it greatly benefits the kids. Another option is to rent an apartment near the home while the divorce is being worked out.
- Don’t rush into anything: It can be tempting, but don’t rush into buying another home after the divorce. Divorce is extremely stressful and can turn your world upside down, making it difficult to make a good decision.