What are the Financial Implications of Divorce? It is unfortunate…
Can you buy a house during the period of separation from your spouse?
The short answer is, yes, you can buy a house during the period of separation from your spouse. There are a few hoops to jump through, however. In North Carolina, if you are married, then both spouses will need to be present at the closing table to sign off on certain documents, even if only one spouse is on the loan. In order to avoid this, you will need what is called a Free Trader Agreement.
What is a Free Trader Agreement?
A Free Trader Agreement (FTA) is a document signed by both spouses that allows one or both spouses to buy and/or sell property. The FTA can be very specific, and limited to the purchase or sale of one specific property. The FTA can also be general, and allow either spouse to sell property in his or her separate name, or purchase property in his or her separate name, without the involvement of the other spouse. The hardest part about executing an FTA is getting both parties to agree on the language and sign off on the document.
How do I get a Free Trader Agreement?
If you’re looking to buy a house during the period of separation from your spouse, give us a call at Helms Robison Lee & Bennett, PA. We can draw up a Free Trader Agreement for you. This is typically a very simple process, as long as both parties are on the same page.
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