Perhaps you’re thinking of purchasing a new home in South Carolina. You might already live in another part of the state or will be moving here from another part of the country. If you’re currently navigating a divorce that the court has not yet finalized, be careful. Before you buy a new house, there are several important issues to consider and steps you might want to take.
Property division is a necessary (and often complex) part of the divorce process. There are basically two categories under which each state operates: equitable property division and community property. There are only nine states that use community property guidelines; however, if you have filed for divorce in one of those states, it may affect your new home purchase in South Carolina.
It’s best to speak to a divorce attorney before buying a house
Is it possible to finalize a divorce without working alongside an attorney? Yes, it is, although it might not be a wise decision, especially if you hope to purchase a new home before the court approves your property agreement. It’s a good idea to consult an experienced attorney to discuss your goals for buying a house before finalizing a divorce.
Especially if you filed for divorce in a community property state, your spouse could be co-owner of your new home, even if his or her name is not on the deed. In states that operate under community property division rules, all marital assets and debts are equally divided between the two spouses. If you want to buy a house under separate ownership, there are steps you must take, which is why it’s best to work with a divorce attorney who has experience with this issue.
Debt to income ratio
If you plan to apply for a mortgage loan while buying a house during the divorce process, a potential lender will review your debt-to-income ratio. This ratio may be skewed if you are currently still attached to your spouse’s debt. In other words, existing marital debt might make it more difficult for you to obtain a mortgage loan to buy a house before finalizing a divorce.
Not impossible but not easy either
While it may be possible for you to buy a house in South Carolina before finalizing a divorce in this or some other state, the process will not be without its challenges. Depending on your unique situation (finances, marital debts, assets, etc.), going to closing on a new home during a legal separation can be complex and stressful, which is why finding an experienced real estate agent, as well as competent legal support is critical to help you accomplish your goals.