Where to live is one of the first decisions spouses make after having the initial divorce conversation. A few options exist. When possible, spouses can both remain in the family home, operating from different parts of the house. Other options include renting a temporary apartment and moving in with family and friends.
But what about buying a home?
Can you buy a home before your divorce is finalized?
It’s not unlawful to buy a home when going through a divorce in California. The question is, should you do so?
Purchasing a new home during a divorce has significant legal and financial risks. For starters, California is a community property state that observes a strict 50/50 split rule. Thus, all earnings, assets and debts acquired by either spouse during a marriage are owned equally and split evenly during a divorce.
If you buy a house before your divorce is legally finalized, it can be considered community property, particularly if you buy it with funds acquired during the marriage. If this happens, your soon-to-be ex-spouse may claim interest in the home.
If circumstances make it necessary or highly practical to buy a home during your divorce, it’s critical to obtain as much information as possible to avoid costly mistakes.
Another risk of buying a home during your divorce is that you may violate court orders. In California, Automatic Temporary Restraining Orders (ATROs) are imposed upon filing for divorce and remain active until the final judgment is entered.
These orders restrict several actions, including the disposition of property. If you buy a new home without following the right procedures, you may violate an order, which can result in severe penalties.
Although legal, buying a new home during a divorce can be risky. Learn more about the steps to take to protect yourself.