Property Bought During DivorceIs property bought during divorce or separation considered community property? Since many months can pass while a couple is separated and waiting for the divorce to be finalized, it's not unusual for one spouse to buy property during this time. But how will this property be handled during the divorce? Will it be considered marital property to be divided in the divorce? These are common questions that often come up, and our legal advisor points out some things to consider if you find yourself in this situation.
Can I buy a house before the divorce is finalized? Pat's Question: My divorce is not final. Can I enter into legal contract to buy another house while I am considered still married? Brette's Answer: You can, but whether it will complicate your divorce is another question. You should consult with an attorney to be sure. Topic: Can he buy a house without me having to sign the mortgage? Felice's Question: I live in a community property state. My husband and I are not divorced yet, but have mediation scheduled for the end of this month. He is living in our home while it is being sold. I have moved out and am living in a home that my family owns. My husband just closed on a home without my signing any documents. I have a copy of the loan agreement with his name as the borrower. How can this happen? What type of recourse do I have since we are still married? Brette's Answer: Either spouse can buy a home during marriage, just like either one of you can go out and buy a car or a pair of socks. The question is going to be where the funds for the purchase came from. If they are marital assets, the amount of those funds will be divided in the divorce. To make up for the assets he has used to buy the home, you could receive other marital assets. You need to discuss your entire financial situation with the mediator. Usually, mediators advise their clients to put a hold on making any big financial moves during mediation. » Return to top Is a home bought before the final decree a marital asset? Kim's Question: My soon to be ex husband has already bought a home before our final settlement is signed. We sold our home and the money earned on the sale is in an escrow account until divorce is finalized. How he managed to buy this home is unknown to me. Would this be considered a marital asset? Brette's Answer: Assets are usually divided as of the date of separation. If he used marital funds for the down payment though, this would be considered in the property division. What should I consider when buying property during legal separation? Traci's Question: I have been separated from my husband since last July, and we have not yet filed for the divorce. I would like to purchase property, but am concerned that he would be entitled to any real estate that I would acquire before the divorce is final. Please advise. Brette's Answer: Property is commonly divided as of the date of separation. However, if you would be using marital assets to buy a house, those marital assets are part of the total pot you will be dividing. You should consult with an attorney so you can understand how your assets would be divided. » Return to top
Related Articles: Brette Sember is a former family and
matrimonial attorney and mediator, nationally recognized expert, and author of
many books including
The Divorce Organizer & Planner,
No-Fight Divorce, and
How To Parent With Your Ex.
This column provides general information about the various aspects of divorce. It is not intended to take the place of legal counsel and should not be considered personal legal advice. For specific recommendations concerning your situation, please retain experienced legal counsel. WomansDivorce.com and Brette Sember disclaim any liability from any claim arising from any information contained in this column. This column is not a substitute for legal advice. Divorce
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