Buying a Home Before Finalizing Your Divorce: Risks and Realities

 

Going through a divorce and thinking about buying a new home? While the fresh start sounds appealing, purchasing property before your divorce is finalized can cause serious legal and financial issues.

Why It’s Risky
If you’re still legally married, a new home could be considered marital property—even if you buy it alone. That means your spouse might have a legal claim to it, depending on your state’s laws.

It Can Affect Your Divorce Settlement

• Alimony/Child Support: A new mortgage may impact how much you pay or receive.

• Debt Division: Adding new debt can complicate how assets and liabilities are split.

Lenders May Hesitate
Without a finalized divorce decree, many lenders may delay or deny your mortgage application. They need clarity on support payments and financial obligations.

Smart Next Steps

• Talk to your attorney: Understand your rights and risks.

• Consult a mortgage pro: Know what’s possible and what to avoid.

• Consider waiting: Finalizing your divorce first could save you major headaches.

Final Thought
Buying a home during a divorce is possible—but it’s often better to wait. We’re here to help you plan ahead and move forward with confidence when the time is right.

Joe Costa and The Park Place Collective Group

619-990-7552

402 West Broadway, Suite 400

San Diego, CA 92101