New home after divorce | Simmelink Advocaten

In brief

After a divorce where the home has been sold or transferred, the question arises as to how a new home is financed and which legal and financial factors play a role in that process.

Check whether you are still jointly and severally liable for the mortgage of the old home before applying for a new mortgage.
Equity from the sale of the previous home can be used as personal capital when purchasing a new home.
Residual debt limits borrowing capacity; banks take this into account during the mortgage assessment.
Alimony that you receive or pay is weighed by the bank when assessing mortgage capacity.
When applying for a new mortgage, banks and notaries often request the divorce settlement agreement and the distribution judgment as proof of the financial settlement.

Legal and financial coherence

A new home directly affects the financial settlement of the divorce.
As long as the old home has not been fully sold or transferred, the bank may refuse to provide a new mortgage.
The law requires banks to take into account:

joint and several liability for existing loans;
financial capacity after alimony obligations;
ownership and the reference date of the old house.

Only once the old mortgage has been adjusted or terminated can the bank issue a new mortgage statement.

Step-by-step plan for buying a new home after divorce

1. Financial overview

Map out income, alimony, equity, and any debts.

2. Mortgage check

Ask the bank if you are still liable for the old loan. If necessary, arrange for release from joint and several liability.

3. Provisional sale or transfer

Wait with the purchase until the sale or buyout of the old home is final.

4. Advice on borrowing capacity

Have a calculation made regarding what you can responsibly borrow based on your new situation.

5. New mortgage or purchase contract

Show the settlement agreement and distribution judgment to the bank or notary.

6. Notarial completion

Sign the deed at the notary and check whether all obligations from the divorce have been correctly processed.

Scenarios

Consultation

If you sell the old home jointly, you can make agreements regarding the use of the equity when purchasing a new house.

Mediation

A mediator can help agree on who leaves the old home and when, and how you divide double housing costs.

Legal proceedings

Sometimes the court determines that one party may invest in a new home earlier, provided that the financial risks are covered.

International

In international situations (expats or living separately in different countries), the law of the country where the new home is located determines the applicable law.

Do you want to buy a new home after the divorce?
Schedule an appointment with us.

Practical examples

1. New mortgage after buyout
A client remained in the old home and later took out a second mortgage for a new home. Thanks to the settlement agreement, the bank was able to correctly revise the liability.

2. Moving on with sales proceeds
After selling the marital home, a client used their share of the equity as a down payment for a new house. The notary confirmed the settlement in the deed.

3. Residual debt and borrowing capacity
A single parent could only obtain a new mortgage after paying off a joint residual debt. The lawyer ensured a clear arrangement in the settlement agreement.

Our Attorneys at Law

At Simmelink Lawyers, you work with lawyers specialized in family law, international family law, and inheritance law. We work intensively together on solutions that are legally sound and do personal justice to your situation.