After a divorce, many people decide to purchase a new home or take over the mortgage on the home in which they have been living with their former spouse. If you are applying for a mortgage on your new home or renegotiating the mortgage on your current one, you need to list all of your income. If you are receiving alimony, that is generally considered part of your income.
Listing Alimony as Income
To list alimony as income, you must have received it for at least six months and be able to show that you will be receiving it for at least three more years. If, for whatever reason, your alimony payments are not received consistently, the lender may not factor them into your income when determining your eligibility for a mortgage.
Your divorce decree should detail the amount of alimony that your spouse is required to pay you and for how long. While you might not want to share the personal matters included in this document with your lender, it can help you obtain the mortgage that you are seeking. As one lender noted, "No two divorce decrees are identical, and we need to be able to see every page so we know what you're responsible for and the details about property." Lenders may also ask for information on child support payments that you will be receiving.
What If You Are Paying Alimony?
If you are the one paying alimony, that will also need to be disclosed if you are buying a home, as it impacts your overall financial status. Again, a copy of the divorce decree may be required when you apply for a mortgage loan, since it impacts your financial status.
When you are going through a divorce, if you anticipate buying a new home or taking over the mortgage of the home in which you currently live, these are all things that you need to consider, whether you are the one receiving or paying alimony. It's wise to discuss them with your family law attorney so that you can more easily move on with your life after your divorce is final.
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