There’s nothing simple about getting divorced. Whether you’re going to court or mediation, the end of a marriage costs time, money, and resources. When it comes to real estate and other investments, there are a number of considerations to be made. Where will you live? Where will your ex live? What do you do with the family home? This, along with other financial questions, are important as your life transitions.
Before Divorce - What do you need to do with your finances?
In her article Financial Planning Strategies for Divorce, Gilbert, Arizona Financial Advisor Shanna Tingom of Heritage Financial Strategies, reminds couples to make sure they have access to all financial documentation including bank and credit card statements, retirement and other investment account balances, receipts from up to five years, and deeds to real estate, along with a credit report, and update beneficiaries on all accounts.
Keep in mind your credit isn’t directly impacted by divorce, or marriage, but can suffer the consequences of either event. I recommend speaking to your financial advisor and attorney as you walk through divorce proceedings to understand what is allowable under state law.
In the state of Arizona, assets and debts accumulated during marriage are considered community property. That means, for example, the credit card you have with your spouse is your responsibility as much as it is theirs even if they are the one who has maxed it out. If that debt, or any other shared debt like a mortgage or car payment, isn’t paid, it goes against your credit and theirs. While it may not seem important today, it will in the future when you need to secure a loan or credit card on your own.
What does divorce mean for your family home?
While you may choose to keep the family home, there will likely be a contingency in the divorce decree for selling the home in the future. Often one parent stays in the home as long as the children are in school. Upon graduation from high school, the home is to be sold and the proceeds divided as agreed to or stated in the decree. While the sale of a home can be stressful, especially under these circumstances, our team is experienced in handling these types of sales.
Are you ready to buy back into the market?
When the time comes to start thinking about buying a home after getting divorced, you may be hesitant because of outstanding debts or current credit situation. That’s where our trusted loan officers can review your credit and guide you through the process of cleaning your debts to get your credit ready to buy a home. Yes, it is possible to buy a home after divorce and Beery Realty is here for you!