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Divorce or Separation

divorce or separation

Getting separated is never easy: learn how to move ahead with your living arrangements.

Aside from the emotions involved with a separation, there are several things to consider and act on relative to your current mortgage.

Do you have a finalized separation agreement? This document is often a requirement to get new a new mortgage or refinance your current mortgage.

There are two clear paths to take regarding your home when separating from your spouse:

1. Buying a new property

  • One of the most important aspects of moving forward is a pre-approved mortgage.
  • What can you afford relative to your current financial situation? (getting pre-approved is essential and will help you with this decision).
  • Will the down payment for your new home be coming from the sale of your current home or a spousal buyout of the matrimonial home?
  • Will you have access to your money from your current property on or before the closing date of your new purchase?
  • What debts will be paid out from the separation agreement?

2. Staying in the existing home

  • Can the equity in the property be used to consolidate joint liabilities?
  • Is there enough to provide a payout from the home if required?
  • A spousal separation home can be refinanced to 95% of the value which can help you consolidate debt and provide the spousal buyout.
  • Through an agreement of purchase, one spouse can buy another spouse out of the matrimonial home with as little as 5% equity.

We’ve helped many people build their new financial future sometimes from scratch. Often debts can be a dispute, but regardless of who pays the bills it’s important to maintain a good credit history. If your ex. decides not to pay some of the credit cards or lines of credit on time it will have a negative effect on your credit history and will affect your ability to get good mortgage financing.

A mortgage professional can work in partnership with your lawyer to help navigate whatever scenario you’re in. By putting us in touch with your lawyer we can work together to facilitate a smooth transition with your living arrangements.

Please contact us at 519 763 3900 if you need help navigating this often difficult situation. We have the experience and expertise to help you move ahead with your new life.