Cautions of Buying a Home after Separating

  • 01 février 2024
  • Olivia Koneval-Brown

When couples separate, the jointly owned home is often one of the first issues that needs to be dealt with. Some parties will agree to both stay in the home until a sale or a buyout. This may be because of financial reasons such as not being able to afford their own place at that time, not having somewhere else to go, or staying for their children’s wellbeing. In other circumstances, one party will move out, whether to a family member’s home or to a rental property. Sometimes, people plan to buy a house.

While a new house may seem like a positive, fresh start, entering the real estate market when newly separated has several risks which need to be considered.

It is common for counsel to recommend that a party not buy a new home. This is because a party can be exposed to a range of liabilities when taking this step. There are scenarios in which a purchase is possible, but to truly understand if it is, there are at least four key considerations to make before signing an agreement of purchase and sale.