Buying a House Before Divorce


#1

Just wanted to ensure that I understood the legal aspects of buying a house prior to divorce. I have been separated for 10 months and do not have a separation agreement. My ex-wife will not sign a free trader agreement. I am fortunate enough to have a relative willing (and able) to loan me the money until my divorce and ED are completed. My plan was to buy a house and have it deeded to me. I also plan to have a promissory note in place to establish appropriate costs for alimony negotiations. Are there any divorce related considerations I should be aware of? Am I correct in concluding that my ex-wife will not have any interest in this new home?


#2

While the home will be your separate property, as it will be acquired after the date of separation, you do need a Free Trade agreement if you are purchasing the property prior to divorce, the reason being is that your spouse has certain inchoate rights (which arise in the event of your death) as a result of still being your spouse, separated or not.
If she refuses to sign a Free Trade Agreement, you may seek a Divorce From Bed and Board, this is a judicially ordered separation and cuts of those estate rights.


#3

Thank you for your prompt response.
Since my ultimate goal is to protect the money loaned to me, I was considering buying a term life insurance policy for the loaned amount that names my very generous relative as the beneficiary. I will continue to pursue the free trader agreement, but with little hope of my ex agreeing. The divorce from bed and board would be my last resort.


#4

I wish you all the best.