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Consider the ramifications of purchasing a house during a divorce

On Behalf of | Mar 9, 2022 | Divorce

If you and your spouse have decided to get a divorce in Florida, you may want to part ways quickly. Doing so may require you to purchase a new home. Knowing how to handle this situation correctly is essential if you’re still going through the divorce process or are legally separated.

Legally separating from your spouse is essential

You need to create a legal separation agreement and obtain a property settlement agreement before buying property as it will impact the debt to income ratio used to qualify for the purchase. Examining the property settlement agreement provides the assets you receive. This can be used to determine the price of the home you can afford. Paying for alimony, child support and other elements related to your divorce will also be considered.

Dividing your assets and debts is critical during the divorce process

Dividing your assets and debts via a divorce decree determines what you and your ex-spouse own and are responsible for paying. Separating these items is best, especially if the spouse you’re divorcing makes poor financial choices. You don’t want their bad decisions reflected in your credit score once the divorce is finalized.

Remove yourself from the property you don’t own and show payment history

If your spouse is awarded property during the divorce process, it’s critical for you to remove yourself from the deed, ending any legal responsibility to it. Having a record of payment history for alimony or child support agreements is also important. If you receive monthly payments, those can be used as qualifying income.

Once these steps have been done, it’s best if you get preapproved before you hunt for a house or make an offer on a property. This action will allow you to know how much you can afford and verify your credit score and finances.