Buying a house can be a complex process for residents in California and everywhere else around the country. However, the process may become even more complicated if a couple has gotten a divorce. Since divorce has a major impact on a couple's financial situation, the divorce likewise becomes a factor in the home-buying process. Experts recommend having detailed discussions regarding the home and any other significant assets during the property division process.
Family law experts note that settlements should be explicitly clear when spelling out how debts will be divided between the ex-spouses. It is critical to also include how any real estate or other assets should be distributed in the divorce. When these issues are not addressed thoroughly, complications can quickly arise. With finances, any disputes or problems can cause issues for those involved for a long time. Here are some ways to avoid problems in the future.
Be specific in listing any joint debts by including the name of the bank and the balance. When child support or alimony payment is made to one of the ex-spouses, it is important to keep proof of the payments to show that they have been made. The receiving spouse needs to receive it for six months in order to establish it as part of income on a loan approval.
Other financial decisions during a divorce can affect the home-buying process. For example, property distribution payments can not be counted as income in the loan process. Also, credit reports can be negatively affected if late payments are made to a joint account. Despite what a settlement agreement may say, both parties will see the late payment appear on a credit report.
The property division process in divorce proceedings may be overwhelming for some individuals. It would be advantageous for anyone going through a divorce to seek the help of a California divorce lawyer. An experienced attorney will work on behalf of a client to protect his or her interests, both currently and for the future.
Source: floridatoday.com, "Avoiding complications from a divorce when home buying", Bobbie Dyer, March 21, 2018