Other than children, houses are the main point of contention during a divorce between couples with a mortgage. It's a very tricky maze to navigate, however. There are a lot of financial considerations for everyone involved when it's time to decide on who gets to keep the yard with the white picket fence surrounding it.
But what about after your divorce? If you're looking to get a house after the paperwork is signed, then there are other red flags that need to get sorted out before you sign yourself into another marriage — between you and your bank.
Money magazine has a few tips they outlined in a recent piece.
If you're in a mortgage now with your soon-to-be-ex-spouse, this is a situation that takes some real navigation to get around. The main reason is making the decision on who stays on the mortgage. If you're trying to start your new life from scratch, then you'd want to get your name off the mortgage because it decreases your debt and increase your odds of being able to get a new mortgage.
But what if they can't afford the mortgage, but you'd want a place for your kids to live? Then you stay on and try to find other options.
A Big Don't
We've said it a few times before on this blog, but do not make any major purchases from the moment you know you're getting divorced. This goes double (maybe triple!) for a house. Why? Because your alimony and/or child support payments could rest on that decision.
How to Get a Mortgage After a Divorce (Money)