Patrick Breen: Buying & Selling After Divorce

 Divorce House Sale

Welcome to the Patrick Breen blog. Divorce impacts several areas of a couple’s lives. The family residence tends to be the most complex. Whether a couple decides to keep or sell the home, it is inevitable that living circumstances will change.

The decision to sell the marital home leads to other challenges. For example, if both names are on the deed, it is jointly owned. This is why it is important to understand your buying and selling options during divorce. In many cases, only one spouse can list the property, but both parties will need to sign off on the listing agreement, contract of sale, and various closing documents. One spouse cannot sell the house without the other’s consent. 

Some questions need to be asked and answered about the buying and selling options a couple has when they divorce: How will the real estate professional be selected to sell the home? Will it be a joint decision? Will they both be available for showings, or will one allow the other to make the choices on  their behalf?

One spouse may decide to keep and remain living in the home. It is highly recommended that the one living in the home become the legal and sole owner of the property. They must financially qualify for the new loan in order to purchase.

Removing one party’s name from the title does not remove financial responsibility of the mortgage.  Sole financial responsibility is only obtained with a new mortgage. With the decision made to award the marital home to one party, the other spouse may decide to buy another home. This decision can create a new host of challenges.

Divorce, coupled with the strain of living on a single income, can cause high financial stress. Overspending and credit card debt are the most common issues hurting divorcees’ credit scores. The spouse that decided to keep the home may not be able to obtain a mortgage. Financial responsibility will remain an obligation of both parties until the mortgage is changed.

Without a final divorce decree, some documents may require your spouse’s signature, even if they will not be occupying the new home or if their name is not on the new title and a financial check-up is highly recommended for both parties. 

Patrick Breen can advise you on the different ways of resolving disputes. Learn  more about Patrick Breen Trial online here. Follow the Patrick Breen Court on Twitter here. You can also watch the Patrick Breen Liverpool teacher video below: