When you become engaged, it can be challenging to think about aspects of your potential future such as spousal support payments or prenuptial agreements.
When you first submit your mortgage application, however, your banker may consider these as part of the overall financial picture of you and your spouse. This can be especially important when the banker is reviewing your debts and your income.
Divorce and marriage are just two of several different life changes that can have big financial ramifications for you and your spouse when applying to buy a home.
Divorce can have a significant impact on your financial life regardless. This is why it is important to consult with a knowledgeable Coral Gables divorce attorney as soon as possible after you make the decision to get divorced.
Read on to learn more about how you can factor in spousal support payments and prenuptial agreements when it comes to buy a home.
Find Out: Will I Get Spousal Support in My Divorce?
Spousal Support Payments
As many people already know, spousal support is a court mandated payment to an ex-spouse that can influence your chance to buy a home in the future.
Whether you are currently receiving spousal support from another spouse or whether you are the one paying it, spousal support certainly makes an impact when you are attempting to qualify to purchase a home.
In the event that you’ve receive spousal support payments, you may be able to use these funds as income to obtain a mortgage if the spousal support payments are consistent over the course of the last several months and are expected to continue for a minimum of 36 months.
If you get alimony only sporadically, however, then it’s not going to help you much in terms of qualifying for a bigger monthly mortgage payment.
No matter what the percentage is that your spousal support contributes towards your income, lenders may not factor these payments if your ex is inconsistent with making the payments.
Providing copies of the divorce decree and the payment history can be a little bit overwhelming for a recently divorced individual, since these materials may have personal information shared on them. However, this may be the best way to present an accurate picture to the lender about your financial situation.
If you receive spousal support or child support and are in the process of buying a home, you will need to be prepared to provide the court details and documentation indicating the length of time you have been receiving these money, the total amount received each month, and how many years you are expected to receive this in the future.
For the spouse paying support remember that this is a debt obligation and can be classified as such by your lender. It can be difficult to start any new loan, including one for a home, if your overall debts including alimony are nearing half of your income. Make sure you do some calculations before applying.
Prenuptial agreements are valuable for legal separations and divorces, but also for estate planning purposes. They legally divide a Florida estate for a currently married couple upon divorce or death from that spouse.
Usually these contracts lists both the assets and debts of one or each spouse and include instructions about how this property will be divided according to the asset owner’s wishes.
These agreements are frequently created and signed when one partner earns a lot more than another, but they can also be used for estate planning purposes.
Certain unmarried couples may use a prenup when buying a home so that a legally binding document is in place for one or both parties’ protection.
Prenuptial agreements will detail what happens if one person is unwilling or unable to meet their financial obligations.
If you do have a prenuptial agreement and you are planning to buy a home with your new spouse, consider:
- What name will be on the mortgage?
- What name will be on the title for the home?
- Who will be making the mortgage payments?
Also Read: What is a Prenuptial Agreement and Why Do I Need One?
Consult An Expert Miami Divorce Attorney Today
In order to learn more about some of the critical issues that can influence you whether you are getting married or divorced in Florida, you may wish to consult with an experienced family attorney to learn more.
- 10 Things to Do If a Divorce is in Your Future
- I’m Getting a Divorce in Florida: What Are My Rights?
- Should I Move Out of the Marital Home Before a Divorce?