Divorce can bring about a slew of new life changes, from forming a new social life to dealing with parenting challenges and managing finances as a single person. One of the biggest challenges most divorced people face is how to settle housing arrangements. Planning to move into a new home post-divorce is an issue that many separating couples face.
You are Moving Out
If you are the spouse that is moving out, there are several factors to consider. As part of your divorce settlement, you may have to pay for the costs of the upkeep of the marital home. If this is the case, these debts will affect how much money you have available for post-marriage housing.
Buying a house after a divorce can be tricky. Your lender will want to see that you have the ability to repay the mortgage. Alimony and child support can be used to bolster your financial picture, but only if these payments are made regularly. If your former spouse falls behind on the payments, your lender may not allow you to use them as income to buy a home. Lenders typically want to see three to six months of on-time payments in order to count this income.
You Remain in the Home
If you are the spouse who remains in the home, there are several factors to consider. The cost of maintaining the home may be your total responsibility, even if your former spouse is making payments toward the upkeep. It can often be a challenge to take on the tasks of home repairs, cleaning and maintenance on your own, so be prepared to tackle these tasks head on. Hiring outside help is often a good way to manage a home on your own after a divorce.
Housing is a major factor to consider when you are splitting from your spouse. By being prepared, you will be better able to meet these challenges.