If you have filed for a divorce, there are several complications and legalities to deal with. So before making any financial decisions, you must rectify that you are not violating any law or putting yourself in trouble.
Moreover, buying a new property before your divorce can cause complications when you and your spouse dive into marital assets. If you are still married to your partner, you might have to give them a share of your new house.
While securing a place to stay before you split with your partner is a good idea, you should first contact a divorce lawyer Appleton, WI, and ask for their advice. Talking to a lawyer will help you as they will guide you through every aspect of your case and decide the best solution.
Can you buy a house before your divorce is final?
The answer to this question is not a simple yes or no. There are several things to consider before buying a house during your divorce.
- Deed requirements
If you buy a house before your divorce is final, the official documentation of the house might require your and your couple’s names because, on paper, you are still married. The home is in both parties’ names can also affect your debt to income-ratio.
To ensure that your partner does not participate in buying a new house, you need to file a quitclaim that will withdraw the vital interests. It can be considered a marital asset even if you buy a property between divorce trials.
- Lawyer and court decisions
During your divorce, buying a new house is considered an asset; on the other hand, if you take out a mortgage, it will be seen as debt. This will raise many questions like, what is the source of money to buy the house? Will you use your existing assets and funds to buy it?
Both parties can decide to buy a house; however, that does not mean the other partner has to sign their way out willfully. Before the divorce is final, every property and the court reviews financial investment.
Moreover, investments with a considerable amount of money can impact the court’s decision while splitting assets and debts. The court can substantially decrease the number of your assets and liabilities, which can disrupt your financial conditions in the future.
A common misconception is that using cash to buy any property before your divorce is final will not appear to compromise any viable assets. Do not make this mistake, as your cash is a marital asset.