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Can you buy property while going through a divorce?
Are you going through divorce proceedings and wanting to buy a new property? Read this article to understand the implications of purchasing a new property in the midst of divorce proceedings.
Can I buy a new property whilst going through divorce proceedings?
Yes, you can definitely buy a property during these times. However, there are a number of risks that are associated with buying a new property during separation, divorce, and financial settlement.
What would happen if I did purchase a property whilst going through divorce proceedings?
Property settlement and asset valuation are usually conducted at the current point in time that the negotiations or proceedings are occurring. This means that all properties registered in the buying party’s name will belong to both parties and all liabilities would be considered at the date of the finalisation of the settlement. If either party were to purchase a property after separation but before the financial settlement is complete, the property is very likely to be considered as part of the matrimonial pool.
Another thing to consider when parties are separated but haven’t finalised property settlement is that the assets and liabilities they preserved are frozen in a sense. This is because parties shouldn’t make any financial decisions until their property settlement has been formalised and completed. Parties shouldn’t take out any extra loans or buy any other properties because this complicates the issue further.
Another thing to consider when parties are separated but haven’t finalised property settlement is that the assets and liabilities they preserved are frozen in a sense. This is because parties shouldn’t make any financial decisions until their property settlement has been formalised and completed. Parties shouldn’t take out any extra loans or buy any other properties because this complicates the issue further.
A previous matter of ours where a party purchased a property during divorce finalisation.
Previously, we have had a matter where parties hadn’t finalised the property settlement and the husband went ahead and purchased a new property together with a new partner, partially using the matrimonial money. As the financial settlement between parties was not formally finalised at the time the new property was purchased and due to the property being partially registered under the husband’s name, the new property was entered into the property pool of the husband and wife. This led to the wife obtaining equitable interest in the new property, which was not ideal for all parties involved.
So, yes you can purchase a new property during the finalisation of a separation, divorce and financial settlement, however it is not advisable to do so due to the many complications that may arise.
If you would like to talk about this further with one of our solicitors, please book a consultation through our website or call us on (07) 2113 4645.
So, yes you can purchase a new property during the finalisation of a separation, divorce and financial settlement, however it is not advisable to do so due to the many complications that may arise.
If you would like to talk about this further with one of our solicitors, please book a consultation through our website or call us on (07) 2113 4645.
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