People plan to raise capital to put towards a home purchase. They plan to save money into a pension arrangement. Unfortunately, most do not prepare for a divorce, even though many have sufficient time to organise their finances. The emotional stress of a divorce can cause many to avoid the worries of financial planning after the breakup and this could lead you to problems when searching for a home loan in Kwinana or elsewhere, at a later stage.
Before the divorce, couples often treat their finances as one large bank with both paying in by way of salary or savings. Life’s natural expenses are met from that bank of funds via a collection of savings, loans and mortgages. On divorce, the two sets of income and expenditure split, not always evenly and both partners have to learn how to manage their finances again. Often one partner has run off with another person and their finances will be linked in with that new person. The biggest problem is with the individual who is left behind on a single income at the very least, but often with disproportionate expenses.
Divorce Causes Stress
Divorced people often suffer from high levels of stress after leaving a previous partnership. The turmoil of legal battles and having to fight their own corner, increases stress as you seek to gain every dollar you can manage to extract from the other party.
Despite the laws and guidelines available, it is usually, but not always, the female partner who is left in a less desirable financial position after a divorce.
Get Help from Your Mortgage Broker in Cockburn
You might have suffered from poor credit ratings during the divorce period, especially if it was drawn out over two or three years. If one or both of the partners failed to pay a credit card bill by the due date out of spite of the other partner or just tiredness, the late payment will be registered with the credit agencies against the name of the card holder. This fact, like any other failure to meet all the financial plans for mortgages, loans and credit cards, can lower your credit score – the profile which banks use to assess your credit worthiness – and damage your ability to raise a mortgage during your divorce or after it has been settled.
Your mortgage broker will be able to help you set realistic targets of how much capital will be required so you can buy a new home and the type and size of mortgage you will be able to afford. Even if you are receiving payments agreed by court from your ex, what would you do if those payments stopped after you relied on them for your new mortgage?
You need to be realistic about your finances. Even if you are receiving child support and divorce settlement payments, your single income might be all you have to support your new set of expenses. Just because you are considering living in a smaller home, your expenses won’t be automatically halved.
Your savings might be needed to pay lawyers’ bills, which never produce small invoices.
Get help with your new financial planning by asking a skilled professional for a home loan in Cockburn, Kwinana or Rockingham area, which will require you to set a budget for your income and expenses and to gradually build up your own line of credit worthiness. Banks are experienced at dealing with loans after divorce and will act appropriately, but in their best interests, which ultimately, should also be yours.