You and your spouse have built a combined financial history. You have most likely cosigned legal documents concerning major purchases, mortgages, and car loans. Now, as you legally separate your finances, we want to help you make sure you have the credit, resources, and financial tools you’ll need to move forward.
How Can Divorce Affect Your Family’s Finances?
When you’re in the middle of a divorce, it may seem hard to plan for the immediate future, let alone the years ahead. Give yourself some time to process the situation and decide the appropriate steps to take.
During this difficult time, you’ll want to maximize your cash flow, protect your home and family, guard your credit, establish your own credit rating (if bills were in your former spouse’s name), and plan for the future. Maintaining expenses within a new, smaller budget can be difficult, but it’s important not to take on more debt than you can manage.
Finding new sources of income makes a big difference for many families. Consider taking on a second job or starting a sideline business if you’re able. Find out if you’re eligible for temporary public benefits or tax breaks from your local public-assistance office.
When Should You Consider Taking The Next Financial Step During This Transition?
As quickly as possible after you and your spouse have decided to split, you’ll want to continue the course of your mortgage payments, find out if an attorney has placed a lien on your home, and locate all financial records. After you’ve located your records, create a list of your bills and pay off the ones requiring the most attention. Consider the following accounts:
- Credit cards
- Bank accounts
- Home equity loans
- Auto loans
- Joint accounts
Bills that may need immediate attention include:
- Health insurance
- Essential utilities
- Credit Cards
- Car loans or leases
- Income taxes
Bills that may be able to be put on hold for a while as your finances settle include:
- Student loans
- Debts for which you have a legal reason for non-payment
You may also want to close all accounts that have both your name and your former spouse’s name on them. Creditors can also covert them to individual accounts in your name. This protects you against new charges your former spouse may incur, complications in your credit score, or even fraud.
What Home Loan Options May Be Helpful During This Time?
Whether you are on the fence about refinancing or buying a new home, our Home Loan Experts are here to listen to your unique situation and help you choose a mortgage option that’s right for you!
When you need to increase your cash flow, considering a home loan from Quicken Loans may provide the income needed to help maintain your expenses. We can assist you in refinancing your mortgage to cut your payment, or increasing your wealth with a cash-out refinance.
Check out our 15-year fixed-rate loan to avoid high interest rates and pay off your mortgage quicker, or our 30-year fixed-rate loan to keep payments consistent over the life of the loan. If you’re already in an existing FHA loan, an FHA Streamline refinance is ideal for continuing your savings. We’ve even got customizable mortgage programs! It’s true! With our YOURgage, you have the flexibility to choose your own term!
With today’s historically low rates and our speedy lending process, you’ll be saving on your monthly payment and have access to your hard-earned home equity!
If you are considering selling your home and dividing the assets before moving into a new place on your own, be sure to continue payments while the house is on the market to maintain good credit.
Never consulted with a real estate agent before? We can match you with a trusted, prescreened agent through our partners at In-House Realty to ensure you’ll have a seamless home buying experience. If a super-sized down payment seems impossible, we have programs that require as little as 3.5% down!
What kind of loan is right for you during this difficult time? With a 30-Year Fixed-Rate loan, payments are low and steady to keep your budget surprise free in a home you’ll stay with for the long haul. When you seek a simple qualification process and government-backed security, an FHA Loan may be a perfect solution. For our veterans, we offer a no down payment guarantee to save first-time home buyers money up front!