We won’t keep you in suspense: yes, you might be able to buy a house before or during the pendency of a divorce case. However, in most cases, you should not.
Unless you are extremely wealthy, you are likely not in a financial position to buy a house before filing for divorce or while your divorce case is ongoing. Read on to understand the key factors to consider before making such a significant decision.
The Risks of Buying a Home Before or During a Divorce
Buying a home before your divorce is finalized can be tempting, given the sense of security and social standing homeownership provides. However, divorce is a time of heightened emotions, and it’s crucial to weigh the legal risks and financial consequences of purchasing a house before you file for divorce, during the pendency of a divorce case, or even immediately after a divorce case ends.
Could Your New Home Be Considered Marital Property?
Utah follows equitable distribution laws, meaning that any property acquired through either spouse’s efforts or marital funds is generally considered marital property and subject to division in divorce. Courts do not necessarily divide marital property equally; instead, they allocate it based on what is deemed fair under the circumstances.
If you use marital funds to buy a new home while still legally married—even if separated—the house could be subject to division in the divorce. Even if you purchase the home using separate (pre-marital or non-marital) funds, it may still become a contested asset. Many people are surprised to learn that they remain legally married until a court issues a decree of divorce, no matter how long the divorce process takes.
Financial Burdens and Credit Considerations
Purchasing a home during a divorce can place a significant financial strain on you. A new mortgage could impact your ability to meet child support or alimony obligations, particularly if temporary orders have been issued. Additionally, taking on new debt may lower your credit score—something you’ll want to keep as strong as possible during and after your divorce proceedings.
The Emotional and Practical Downsides
Divorce is one of the most stressful and emotionally taxing experiences a person can endure. The last thing you want is to add unnecessary complexity by making a major financial commitment, like buying a home, in the middle of the process. Even if you believe homeownership is necessary, the risks may outweigh the benefits. Whether your spouse claims an interest in the property or you find yourself litigating over it in court, the financial and emotional toll could be far greater than you anticipated.
Taking on the costs and responsibilities of a new home during this time may be overwhelming. It’s often best to wait until after the divorce is finalized—to take stock of your situation—before making such a significant purchase.
If You Must Buy a House, Take Precautions
If you feel compelled to buy a home before your divorce is finalized, take steps to protect yourself:
- Consult an attorney first. A knowledgeable family law attorney can help you understand the potential legal risks and how to mitigate them.
- Understand the role of a quitclaim deed. This document allows your spouse to formally relinquish any interest in the new property. However, this alone may not fully protect you, so legal guidance is essential.
- Seek financial advice. A financial professional can help you manage your credit, budget properly, and navigate both the divorce and home-buying processes wisely.
There are times when an impulse purchase is harmless—even fun. Buying a house during a divorce is not one of those times.
Divorce is challenging enough without adding the complexities of a new home purchase. Likewise, buying a home is difficult enough without navigating a divorce at the same time. Take the necessary time—and seek professional advice—to make wise decisions. Separate emotions from facts and weigh the realities of homeownership against the emotional appeal of a fresh start. Acting impulsively can lead to costly mistakes, while patience and thoughtful planning will serve you far better in the long run.
Utah Family Law, LC | divorceutah.com | 801-466-9277
