A home purchase is not an impulse decision. It’s not as easy as buying groceries, electronics or a new car. It’s something that requires careful forethought and planning.
The entire process can take weeks or months to complete because of all the necessary steps involved and the people that you need to interact with along the way. Things can get even more complicated if you’ve decided to buy a house in the middle of a divorce.
Buying a home in Utah while going through a divorce can be a little more difficult than normal, but it still can be accomplished. You’ll still follow the same steps that every other home buyer goes through.You just have to be a little more cautious with your finances and may have to jump through a few legal hurdles
Here are a few things to consider if you find yourself in this kind of situation:
1. Set aside funds for your down payment
One of the first things that you should do is set aside enough money for your down payment. Depending on where you live, you may be required to identify where your funds for the down payment will be coming from.
It may take some time, but you should be able to set aside enough money for a down payment, monthly mortgage payments and other financial responsibilities.
You may have to postpone your plans of buying a different home until you either enter divorce proceedings or the divorce is finalized. In the meantime, you may have to work out alternative living arrangements until everything is settled.
2. Define your separation date.
The date is one that should be agreed upon by both parties in the divorce. Having a definite separation date can make it much easier for both of you to start living your own lives.
If you’ve separated from your spouse and are now deciding to buy a house for yourself, that property in itself shouldn’t be considered marital property in the eyes of the law. Talk to your real estate agent as soon as you know that you want to buy a home.
You may also want to meet with an attorney who is experienced in real estate law so that you fully understand your rights and the laws concerning property ownership during a divorce in your state
3. Get your finances in order.
Another important step is ensuring that you can afford the home that you want. Besides the down payment, you’ll also have to set aside funds for monthly utility bills, property taxes, homeowners association fees, and other related expenses.
You may need to open separate checking and savings accounts so that your down payment and other expenses for your new home can’t be commingled. Once you have those accounts, spend some time to plan your budget.
Review your current income and expenses. If there are any redundant or unnecessary expenses, now is the time to either reduce or eliminate them. If you have other loans or outstanding debt, pay them off or down as much as possible before purchasing a home.
4. Approach the court for approval of the home purchase.
Certain states require that people who are getting divorced receive approval before they can buy a home for themselves. If approved, the court will issue an order allowing you to buy a house.
It’s wise to have this document in hand before proceeding with a property transaction because it can protect you against any possible claims for community property that your former spouse may file against you.
If you fail to inform the court about your intentions, things could backfire on you quickly. Your former spouse could have a legal claim to your new home, especially if the divorce paperwork hasn’t been filed or your separation date hasn’t been defined.
It’s best to do everything legally. Make sure that you have copies of everything in writing, and that you read all documents carefully before signing them.
5. Rebuild your credit if necessary
If you had joint credit cards or loans while you were married, you might not necessarily still have them after your divorce is finalized. A divorce can have a major impact on your credit and your credit score. You may have a reduced credit score, or even wind up having to start building your credit all over again from scratch.
You can start re-establishing your credit by opening a credit card or two with a smaller credit limit than before or opening a small loan in your own name. Pay attention to the terms and conditions, and don’t miss any payments. You should be well on your way to rebuilding your credit, as long as you don’t overdo things.
In Conclusion
Define your separation date, notify the court of your intent to buy a home for yourself and start setting aside money for it so that you can move on with your life. Eventually, you’ll be able to close that painful chapter of your life and open the door to a brighter phase in a better place
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