Dealing with a divorce is never the highlight of anyone's day, but as your Realtor, my goal is to make sure the real estate side of the transition is as seamless and stress-free as possible.
If you or someone you know is navigating a home purchase or sale amidst a divorce, timing and documentation are everything. One of the most critical hurdles is the Marital Settlement Agreement (MSA)—sometimes called the Property Settlement Agreement (PSA). This document must be fully executed by both parties before a mortgage can typically move forward.
Because every situation is unique, being proactive is the best way to avoid delays. Here is a quick checklist of what you’ll likely need to have ready:
Divorce & Real Estate Checklist
Legal Documents: A copy of the divorce decree, legal separation agreement, or court order.
Support Details: Documentation regarding alimony or child support, specifically the agreed-upon amount and duration.
Proof of Income: If using support payments to qualify for a loan, you’ll usually need the most recent six months of proof of receipt.
Liability Clarification: Documentation confirming if an ex-spouse is responsible for an existing mortgage.
Property Transfers: Title transfer or settlement documents for any property being awarded or bought out.
Hidden Opportunities to Consider
Navigating a divorce doesn't always mean you have to start from scratch with a high interest rate. There are two specific paths that often get overlooked:
Spousal Assumption: If one party is staying in the home, they may be able to complete a spousal assumption, which allows them to keep their current low interest rate while removing the other spouse from the loan.
Equity Access: In certain refinancing scenarios, it’s possible to access up to 95% of the home’s value. This can provide the necessary liquidity to buy out a partner or settle other debts during the transition.
How I Can Help
I specialize in these complex scenarios. I work closely with lenders to identify pitfalls early, ensuring that by the time we find your next home, the paperwork is a non-issue.
If you’re unsure about where you stand or just want to review a scenario privately, let’s connect. I’m here to help you move forward with confidence.
