Breaking Up Is Hard To Do

by Darrin DeRoches August 16 - 22, 2012

Breaking up is hard to do. Well, not really. In today’s world, it seems that breaking up is the easy part. Settling the assets is the real hard part. Divorce was the big thing in real estate a couple of years ago, but more and more people are buying houses without the marriage part. So when the relationship fails, who really gets the assets? If you are in the process of a separation, one of the most important things to do is “keep up the status quo”.     Separation is always hard and it can get pretty nasty, but keep in mind your financial position. You can always hate each other later; take care of your assets now. First thing’s first – make a plan. If you want to keep the house, talk with a broker to assess the value and he or she will be able to recommend a good mortgage broker who will be able to refinance the property and one party can “buy out” the other party’s half. If this does not work, you can start by getting separate bank accounts and keep paying the bills equally until one party is able to establish credit to be able to refinance the property. A third option is to sell the property and divide the assets.     Most people are usually separating over money issues so the best option is to sell but this also brings in problems with renting, schools for the kids etc. The best plan is to keep things as normal as possible and combine all three options. Separate your money and accounts, establish separate credit scores and keep paying the mortgage – jointly – until a time when the financial picture is better. At this time both parties may be able to purchase new, yet smaller, properties that will work for everyone. It may sound crazy to work together with a partner who you obviously do not like anymore, but the downside is huge for everyone involved. If children are involved, you are going to be paying support anyways so why not use that money to “support” your biggest assets and move forward separately but with a common goal – good credit, home ownership and secure financial future.     Common law and child support will usually override any other squabbles you will have so why not take care of your home? A good real estate broker along with a mortgage broker can sit down and help both parties settle their assets and they can even bring in credit councilor to aid in the process. Once you have come to terms with the reasons why you are separating, sit down with a cool head and move forward with a strong financial outlook. You’d be surprised how much money you can save in the separation if you can keep things moving for the short term and stay amicable. You have a whole life ahead, so enjoy your financial future. You can still hate on your ex once it is all settled and you are enjoying your home – not your ex! V