Buying a house during divorce isn't a good idea. Divorce is complicated, and so is buying a house; you don't want to run those two complicated processes concurrently will only give you migraines. Here are four ways a property purchase can complicate your divorce process:
Sellers Will Be Wary Of Your Offers
The first potential problem you may face is the difficulty of convincing sellers that you can afford the house. Usually, you shouldn't have this problem if you have a good income and stellar credit, but the two might not be enough if you are going through a divorce. The expenses associated with divorce plus your post-divorce expenses add an element of uncertainty that many sellers may be unwilling to take. You still don't know how much child and spousal support you will pay, or the value of your portion of marital assets.
Your Credit Rating May Take a Beating
Apart from sellers, your potential lenders may also be wary of your mortgage applications. This is especially true if you will be paying child or spousal support. Lenders view such obligations as debt, and debt ruins your credit worthiness. The more post-divorce obligations you will have, the more the lenders may think that you will not be able to meet our mortgage obligations. Apart from child and spousal support payments, here are other ways divorce can hurt your credit rating:
- You could lose one income stream if your spouse was also working.
- Your spouse may fail to service your jointly-owned debts.
- Your spouse may purposefully ruin your finances, for example by dissipating your marital assets, in a revenge mission.
Your Emotions May Affect Your Decisions
Emotions run high during a divorce, and you shouldn't make major decisions when you are emotional. For example, your desire to get away from your former spouse may make you choose a house in a neighborhood that you wouldn't normally live in. You may also find yourself looking for an expensive property (as a way of sticking it up to your ex-partner) that you can't afford. On the other end of the scale, you may lack the drive to compare the available offers and negotiate for their purchase, which means you may get a raw deal.
The best thing to do is to get a temporary place to stay in until your divorce is finalized. You can use this opportunity to start the preliminary processes associated with house hunting, such as talking to an agent, evaluating neighborhoods and getting your financial house in order. For more information, consult with a divorce lawyer, like one from Larson, Latham, Huettl Attorneys.Share