Separating from a partner is no easy task and can be an emotionally draining and stressful experience. However, it isn’t an experience to feel ashamed of as many of us go through a divorce during our life journey. If you are recently divorced or separated, typically there is a need to start again on a blank slate right away. However, when it comes to finding a new home, it’s important to evaluate your situation carefully and make the best financial decisions for you and your family without your emotions clouding your better judgement. When it comes to your mortgage specifically this is what you need to know and consider when looking for a new home after recently separating.
What will happen to your current home?
When you and your partner decide to separate, one of the biggest decisions you will both have to make is what will happen to the current home you are both living in. If you decide to keep the house, you will need to decide who will continue to live there and who will be moving out. If you are a married couple who are divorcing, both of you have equal rights to the house and will, therefore, need to come to an agreement. If you are common law, things work a little bit differently. Any property you brought into the home remains your own. Whoever’s name is on the title of the house, they get to keep it, however, if both names are listed, you will need to sell the property, or one partner will need to buy the other one out. Especially if you have children, it’s important to consider what will happen to your current home carefully.
Wait until the separation is finalized before buying a new property
It’s recommended that you wait until your divorce is official before you jump into buying another property. What many people don’t anticipate when they separate is in many cases, people are forced to downsize but don’t have enough space for their possessions. If you are planning on finding a new home, it may be best to rent until the divorce is completed, or at least get the cooperation of your spouse so there are no unexpected claims. Whether you know or think there may be any conflicts between you and your spouse or not during this process, work with a lawyer. Also keep in mind that going for a two-income household to one-income is a big transition to make. Be sure that you are financially ready to purchase a house when the times comes before signing on the bottom line.
Have any questions about getting approved for a mortgage after recently separating or getting divorced? I have the answers. Work with me, Darren Robinson, and get the fresh start you deserve. With my years of experience as a professional mortgage broker in Barrie, Ontario, I can help you get approved for a mortgage and give you the right financial guidance you need at this turning point in your life! Although we are all currently facing hurdles due to the COVID-19 pandemic, I am still available via phone at (705) 315-0516 or video call! Call today and let’s set up a virtual meeting to talk more. Stay home and stay safe everyone!