Buying Out A Partner's Share Of Property During A Divorce

Divorce highlights just how entangled you and your soon-to-be-ex-spouse have become in terms of property. From furniture to cars to homes and land, you are now faced with the problem of dividing everything up. If you decide you want to stay in your home instead of selling it, you'll have to buy out your partner's share of the house. This sounds simple but can be more complicated than you realize. If your partner has agreed to leave and won't force you to sell the house outright, you still need to consider some issues before going ahead with your plans.

You'll Need to Qualify for a Mortgage

First, you'll need to qualify for a mortgage. When you buy out your partner's share, you're essentially buying half a house. If you have the cash assets to make the purchase outright, then you'll be able to complete the sale quickly though you'll need the help of your divorce attorney and a real estate agent to ensure everything is done correctly.

However, if you don't have the cash, you'll have to go through the mortgage-approval process like any other buyer. That means you'll need credit good enough to get approved and an income source that is adequate for the payments.

The Memories May Hit After You Buy Them Out

The activity involved in finalizing the divorce can make you feel numb or just plain too busy to feel anything deep. Once you've got the house in your name, however, and the ex-spouse is out, that's when feelings can start to hit hard. Be sure you are absolutely OK with staying in that house after the divorce. Trying to sell it after getting that mortgage and going through all the legal hoops to separate your spouse's name from the house can be tiring and frustrating.

You'll Have to Double Your Maintenance and Emergency Budgets, Too

If your spouse contributed financially to the upkeep of the house, you have to remember you aren't going to have that money to use now. You'll need to double your maintenance and emergency funds to cover problems with the house. Be sure you include that in your post-divorce budget plans.

If you're thinking of buying out your spouse's half of the house, consult with your lawyer first to ensure you haven't overlooked anything. Many people take this path during a divorce, but you need to be sure it is absolutely right for you. Speak with a divorce lawyer to learn more.