When a marriage breaks down, it can cause emotional turmoil for everyone involved. However, it isn’t just the emotional fallout you’ll need to consider when you separate from a partner; if you’re getting divorced, there will also be practical and financial issues to address.
First and foremost, you’ll need to find somewhere to live if staying in your matrimonial home is no longer an option. For most people, this presents difficulties. The assets and income used to finance one property must now be used to fund two homes, which means you could find yourself with fewer options than you’d like.
However, there are ways to make the transition to a new home easier. If you’re going through a separation, take a look at how you can fund a post-divorce property purchase now:
1. Get Legal Advice
Anyone going through a marriage breakup should access legal advice. Property division during a divorce can be a complex matter and you won’t want to accept less than you’re entitled to. If one person has been a stay at home parent and the other has worked full-time, for example, their contributions will need to be assessed objectively.
Furthermore, if you share children with your spouse, this may affect how the property is divided. The parent with primary or sole custody may be given the right to reside in the matrimonial home if it’s in the best interests of minor children. With so many issues to address, it’s important to seek specialist legal advice before agreeing to any terms.
2. Calculate Your Borrowing Power
Depending on your marital assets, divorce settlement and income, you may be in a position to purchase a new property straight away. However, you’ll need to know your borrowing power if you’re likely to need a mortgage to finance buying a new home. For most couples, taking out individual mortgages is an effective way to increase their options post-divorce.
Alternatively, you may be able to rely on financial support from family members, if they’re in a position to lend you a deposit or are willing to invest in a property with you.
3. Take in a Lodger
If you’re going to struggle to make monthly mortgage repayments and pay for essentials after your divorce, you could increase your income by renting out one or more of your rooms. Some mortgage providers will even base a mortgage offer on the additional income you could generate. While you’ll still need to find the money to fund a deposit, the settlement from your divorce may give you the lump-sum you’ll need to get straight back on the property ladder.
Dealing with a Divorce
Whether you’ve been married for months or years, separating from a spouse or long-term partner can be challenging in a variety of ways. While people are always eager to buy a home, there are other options available if your finances don’t stretch that far. Renting or moving in with other family members could give you the breathing space you need as you evaluate your options, for example.
However, getting legal advice prior to divorcing will stand in you good stead. With a reputable legal team representing you, you can ensure you get a fair settlement in your divorce, which can help to give you closure and fund a new chapter of your life.