Owning a home is very important for many California residents, and the fate of a marital home is one of the most important aspects of any divorce. There are several things that may happen to a home during divorce, and a spouse should keep in mind a few factors that may affect their ability to get a mortgage.
The marital home is often the most important and most valuable asset in a divorce. In most cases, the home will be subject to property division, which will result in one of the following outcomes. A single spouse may be granted the entire property. The value of the property may be split between the spouses, in which case the house is sold and each spouse receives their share of proceeds. If the value of the home is split, then a spouse may attempt to keep the home by buying out the other spouse’s share of the value.
Many people seek to purchase a new home after the divorce. There are a few things to consider in such a case. One of the most important is mortgage qualification requirements. People will no longer be able to consider their marital income, and this can have a dramatic effect on debt to income ratios. Some lenders might not count alimony as income until after a certain period, usually three to six months. While a divorce does not directly impact credit scores, it is common for problems with bill payment to arise during divorce that do impact credit.
People may benefit from having a clear plan and understanding of how a divorce will impact their ability to own a home or keep the marital residence. A family law attorney might help to negotiate a settlement agreement that will be most beneficial to the client.