Buying a home before the divorce is final

[heatherfeather]

What is the name of your state? Colorado

My friend is going through a divorce that looks as if it will get nasty. Both she and her soon to be ex-husband are living in the house that they have owned for the past 10 years. It is currently on the market. She has found another house and has an accepted contract on that property. Until recently, things were civil. Recently, he threatened to take 1/2 the equity in her new house, after promising to leave it alone if she went ahead with the purchase. Their house will be sold in the next month or two and then he will have to move as well. She doesn't mind being responsible for 1/2 of the mortgage payment on their current home she just doesn't want him to be able to do anything to/with the house she is planning on buying. Can they sign an agreement that he has nothing to do with her new home? Would it be easier for her mom to buy the house and after the divorce is final my friend can refinance the home in her name only? Any advice is welcomed!

 

[Ohiogal]

What is the name of your state? Colorado

My friend is going through a divorce that looks as if it will get nasty. Both she and her soon to be ex-husband are living in the house that they have owned for the past 10 years. It is currently on the market. She has found another house and has an accepted contract on that property. Until recently, things were civil. Recently, he threatened to take 1/2 the equity in her new house, after promising to leave it alone if she went ahead with the purchase. Their house will be sold in the next month or two and then he will have to move as well. She doesn't mind being responsible for 1/2 of the mortgage payment on their current home she just doesn't want him to be able to do anything to/with the house she is planning on buying. Can they sign an agreement that he has nothing to do with her new home? Would it be easier for her mom to buy the house and after the divorce is final my friend can refinance the home in her name only? Any advice is welcomed!

It is bought during the marriage with marital income then it is considered marital property. Having her mom buy it and then her refinancing it -- well that becomes fraud quite frankly and gives ex a chance to go back after the fact and get half of it. Yes they can put it in writing that he does not want anything to do with the house and he can quit claim his interest to her however it is always risky buying a house during a divorce.

 

[WalterLegal]

As long as your friend's mom buys the house with the mom's money, there is no fraud, provided that your friend doesn't "pay" for it until after the divorce is final. The key is whose money is being used to buy the house. An agreement with the ex is risky. First, an agreement doesn't matter unless and until the court approves it. This is because of the "automatic court orders" that go into effect in Colorado at the moment a divorce petition is file. Generally, it is best to wait until after the divorce is final to acquire assets. Then there's no question about whose money was used.

Good luck ~Jeff

 

[Ohiogal]

As long as your friend's mom buys the house with the mom's money, there is no fraud, provided that your friend doesn't "pay" for it until after the divorce is final. The key is whose money is being used to buy the house. An agreement with the ex is risky. First, an agreement doesn't matter unless and until the court approves it. This is because of the "automatic court orders" that go into effect in Colorado at the moment a divorce petition is file. Generally, it is best to wait until after the divorce is final to acquire assets. Then there's no question about whose money was used.

Good luck ~Jeff

But if ANY portion of the money comes from the friend then that can be a very big problem and from the sounds of it in the OP mom was just going to get it in her name. And if friend is on the mortgage and not the deed...

 

[LdiJ]

What is the name of your state? Colorado

My friend is going through a divorce that looks as if it will get nasty. Both she and her soon to be ex-husband are living in the house that they have owned for the past 10 years. It is currently on the market. She has found another house and has an accepted contract on that property. Until recently, things were civil. Recently, he threatened to take 1/2 the equity in her new house, after promising to leave it alone if she went ahead with the purchase. Their house will be sold in the next month or two and then he will have to move as well. She doesn't mind being responsible for 1/2 of the mortgage payment on their current home she just doesn't want him to be able to do anything to/with the house she is planning on buying. Can they sign an agreement that he has nothing to do with her new home? Would it be easier for her mom to buy the house and after the divorce is final my friend can refinance the home in her name only? Any advice is welcomed!

Her mom buying the house temporarily and renting it to her would be a possible solution.

However, if she uses her half of the proceeds from the house they are selling, to purchase the house, it would be difficult for him to claim the home as marital property. Also, she can point out to him that if he tries to claim half of her home, she will try to claim half of whatever he does with his share of the proceeds from their current home.

 

[Ohiogal]

Her mom buying the house temporarily and renting it to her would be a possible solution.

However, if she uses her half of the proceeds from the house they are selling, to purchase the house, it would be difficult for him to claim the home as marital property. Also, she can point out to him that if he tries to claim half of her home, she will try to claim half of whatever he does with his share of the proceeds from their current home.

her mom buying the house and renting it to her MAY NOT work. The devil is in the details. IF any money from OP goes into the home it would most likely qualify as marital property. She is going to spend so much time trying to prevent it from being marital property bought during the marriage that it would make more sense for her to wait to purchase until the divorce was final. And it depends on when the house sells -- if the divorce is final or not. If the divorce is not final and they split the proceeds rather than escrowing them until after the final judgment of divorce then they both have a right to claim whatever is bought with the proceeds as marital property.