Can Alimony Affect my Ability to Buy a Home?

People fight about two things in divorce: kids and money.

Dividing assets and debts is usually a pretty straightforward process. (You can read about the basics here and here.) So, you usually don’t fight about that a ton.

Child support is also pretty straightforward and unobjectionable. I mean, honestly, who fights against paying to help their kids? (You can read more about how child support is calculated here and here.)

Same goes for child-care costs and sharing insurance and out-of-pocket medical expenses for your kids. They just aren’t that controversial, so people tend not to fight about them much.

And then there’s alimony. This is where it can get contentious. No one likes to pay alimony. Men don’t like to pay it because they feel like they’re paying their ex-wife to be their ex-wife. And, if men don’t like to pay alimony, women like to pay it even less. (Women paying men alimony is pretty rare, by the way.)

The reality is, though, that alimony is a regular part of divorce. What I mean is it’s pretty common that one party pays another party alimony for a while. (For a primer on alimony calculations, read here.)

Alimony and Mortgages

Because alimony is a regular part of divorce, and because people usually buy homes after divorce (you should wait a little while before buying a home), we get asked pretty often if and how alimony affects buying a home.

There are two angles to this question.

First angle is from the point of view of the person paying alimony.

If you pay alimony, you almost always pay it every month for a period of time (e.g., every month for five years). This means you have a monthly debt obligation that must be paid before paying a mortgage. This increases your debt load when you apply for a mortgage, which means you’ll qualify for a lower loan amount or a higher interest rate.

You can still qualify for a mortgage if you pay alimony, but it will be at a decreased amount or higher cost.

Second angle is from the point of view of the person receiving alimony.

If you receive alimony, that monthly amount will be counted as income when you go apply for a mortgage loan. (It’s also considered income for tax purposes.) This means your alimony will help you qualify for a higher loan amount or lower interest rate.

Ultimately, how alimony affects particular mortgage loan amounts and interest rates is dependent on the company you choose to finance your mortgage. Shop around.

Protect Your Money And Your Family

We remove fear associated with divorce, protect your money & maximize time with your kids!

We're here to help. Let's determine your best options.

Call Us 24//7 at 801-685-9999 to Speak with a Live Representative

Utah Divorce FAQs
Top 100 Divorce Blog
What Clients Are Saying…
Brown Family Law
Excellent
4.9
Based on 803 reviews
Overall from start to finish the best experience to have dealing with a time that is difficult.Andrew Christensen is very professional and out going to make this situation the best it could be and worked hard to make sure the divorce was fair for me.Over all, this firm really cares and treats you as a family or friend and just not a client, down to Marco Brown taking time to see how I was doing and offer to help in any way possible during my divorce while I was there for my first initial meeting.I would highly recommend anyone that has to go through a divorce to really reach out to the Brown Family Law firm and see for your self the experience I was able to receive from a top notch law firm.
Response from the owner: Devin, thank you for the kind words. Andrew appreciated the opportunity to help you with your situation.
Sophie was very helpful and explains the process and fees. Thank you!
Response from the owner: Corey, thank you for the kind words. Glad we could help.
My attorney Amy Pomeroy and assistant Melanie and Dani are awesome! It’s an easy case but due to the opposite party was failed to respond, the process went much longer than we expect. During the process Amy gets the necessary job done as quick as she can. The assistants made the most documentation jobs done in a reasonable time. I will get phone call or message to communicate for the status, what’s the next step, what should I expect. In the end, it’s a huge win. So I definitely recommend Brown Family Law. They are professional and handle the case very well.
Response from the owner: Yue, thank you for the kind words. Glad Amy was able to help you so well.
Dani always kept me updated and has great communication skills.
Response from the owner: Thank you, Sofia.
Dani was extremely helpful and always responsive.
Response from the owner: Glad Dani did well for you.
My experience with Brown Family Law is a positive one. I highly recommend them. This firm has very good communication with their clients. Attorney Paul Waldron represents me and I’m very happy with the experience. My questions and concerns are always answered quickly and respectfully. I’m grateful to have Mr. Waldron and Brown Family Law in my corner during this difficult time for my family.
Response from the owner: Jodie, glad we were able to communicate with you so effectively and quickly. Thank you for your kind words.
I recently used Clay in a divorce case and could not have been happier. He was efficient, knowledgeable, and made me feel like I was his only client. The process was easy and he was always there to reassure me or help me with decisions. I would highly recommend Brown Family Law.
Response from the owner: Thank you, Mendi.
Dani excelled as a paralegal, providing crucial support with exceptional skills!
Response from the owner: Glad Dani did such a good job for you.
Thank you So much
Response from the owner: You're welcome. Thank you for choosing us to help you.
I highly recommend Nathaniel and his team. They listened to me, navigated me, educated me, and always called when they said they would. Going through a divorce was very hard but they helped me get through it and showed compassion the whole time.
Response from the owner: Amy, thank you for your recommendation, and glad we could help you through your divorce.
js_loader

Categories

Related Posts