Separations - Navigating the path to homeownership

August 30, 2024 | Posted by: Sharon Patton

Have you decided to separate or divorce? There are so many questions you are asking yourself to start this journey that no one expects to take.

Separation is never easy, and when a mortgage is involved, it can add an extra layer of complexity. Whether you're going through a divorce or ending a long-term relationship, it's important to understand your options to make this stressful time easier to navigate.

Having personal and professional experience with separations we know that the information is not readily available or easy to locate. We created The Separation Network to bridge that gap and help you navigate your fresh start in real estate and home ownership.

We work with you to help answer the tough questions regarding your matrimonial home and find the best option for moving forward.

Let's take a look at the steps on the path towards homeownership.

The hardest part is where to start! The first thing we need to do is get organized.

There are various financial items you will need:

Income Documents
List of Assets
Outstanding Debts

We are here to help you gather everything you need to make the right decision moving forward.

Next, let's have a meeting and evaluate your financial situation and the value of your home. You'll need to know how much equity you have in the property. Equity is the difference between what your home is worth and what you still owe on your mortgage.

If you’re uncertain about the numbers, we can consider getting a professional appraisal and consulting your mortgage lender for an accurate payoff amount. This will help navigate your next steps.

'What are my options when is comes to the matrimonial home?'

Some options to consider:

Spousal buyout
Sell
Purchase
Rent

These lead to other questions such as:

How much is our home worth in today's market?
How much can I qualify for on my own?
Can I afford to buy in my current neighborhood?
What are the penalties if we sell?

Having an experienced separation mortgage broker and realtor can help highlight your options and avoid costly mistakes along the way.

We are here to explore the best option that suits your financial needs.

'Do I need a Separation Agreement?'

The answer to this is YES!!

But when......

You do need a separation agreement to get a firm approval for a mortgage, but we can work on a pre-approval while you navigate this path.

Having a separation agreement in place is important to move forward. It outlines what will happen with the matrimonial home, shared assets and debt, support, and child custody.

We can introduce you to a family lawyer or mediator that can work with you to have this agreement prepared if you do not already have one.

This is one of the most important steps to take. You will need to work on a pre-approval before your can finalize your separation agreement.

You need to know what you can afford going forward
Can you buyout and keep the matrimonial home or will you be moving?

This will now give you a roadmap for moving forward.

Taking that first step is overwhelming and likely the hardest one to take. We are here to help you navigate through this difficult journey one step at a time.

If you or some one you know is thinking about a separation or divorce, let us take some of the stress away and equip you with the resources you will need to move forward. Contact us today for a copy of our separation road map.

We are here to help you navigate this unexpected journey.

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