(Closed) Wearing the Financial Pants…

posted 7 years ago in Money
Post # 3
Member
2450 posts
Buzzing bee
  • Wedding: October 2012

If dave ramsey were here, he’d tell you that you don’t really have a choice BUT to wait until he is more financially prepared. Instead of putting money towards a new house, put money towards those back taxes. 

Post # 4
Member
1041 posts
Bumble bee
  • Wedding: November 2012

@rosworms: I totally agree. 

I would also suggest talking to a financial advisor to map out a financial plan. You guys have to get on the same page about money since it is the primary cause for divorce. He needs to figure out why he has bad credit in the first place and have a plan for changing his spending habits in the future. This is totally something that can be worked out but i would do it before buying another home.

Post # 5
Member
541 posts
Busy bee
  • Wedding: June 2011

im thinking prenup?

Post # 6
Member
642 posts
Busy bee
  • Wedding: April 2012

I wouldn’t buy unless you want the property. Save up the cash, buy gold or other safer investments. Properties can be an investment, but unless it is an income property, you will generally make more elsewhere. I know the housing market is looking really good right now, but in a stable market, and hopefully we are on our way back to one, the average increase is 3% a year, in my area- this could be different for you. I’m sure you can get better than that somewhere else. In the mean time you will create a early retirement, college for kids, rainy day fun, international vacation etc fund and your FI can repair and catch up his stuff and hopefully carry a little more of the load.

Post # 7
Member
642 posts
Busy bee
  • Wedding: April 2012

@blondilocks: I would seriously consider this.

And check into the back taxes, will they become your back taxes once your married. My dad always tells me you marry him financially too, but I don’t really know how that works at all.

Post # 8
Member
929 posts
Busy bee
  • Wedding: December 2011

If you’re making a committment to a life together, I agree that all your extra income should be going towards getting him as financially secure as you are.  I know not everyone agrees with this, but to me a merging of assets is a merging of assets.  My fiance makes a little bit more than me, but at this point we only talk in terms of joint income and our disposable income goes to clearing OUR debt – whether it started as mine or his, its now ours.  Again – i know that way of thinking isn’t for everyone, so I’ll reitterate that its just my opintion.

Post # 10
Member
658 posts
Busy bee
  • Wedding: December 2013

I am not in that situation..but I would like to know the answer when you get one..so all I can do unfortunately is *bump* this thread!

Post # 11
Member
752 posts
Busy bee
  • Wedding: October 2011

Unlses the laws are different in your state from mine, any property aquired during the marriage regardless of whose name it is, belongs to the both of you.  Couldnt his collectors pursue this new property as well?

I do think you’d be over-stretched.  I do believe doing things like purchasing a car with a payment would become more difficult unless you’ve got tons of cash stocked away.

I would honestly be fearful of taking on so much debt.  I hope you have enough cash stocked away to manage it all in case of a layoff or other job trouble. 

Post # 12
Member
806 posts
Busy bee
  • Wedding: August 2010

Just because they’ll give you another mortgage in your name doesn’t mean it’s a great idea for you…

Why not find a tenant for your current place and then you and he rent a larger house/condo for the next few years?

It sounds like you clearly need more square footage, but that doesn’t mean you have to buy, right now.  Make sure he cleans up his tax situation and actually takes action to improve his credit in the mean time.

Post # 13
Member
1488 posts
Bumble bee
  • Wedding: March 2012

@2embarrassed: This is second hand experience from my parents and how they’ve always handled their money. It might be an idea for you because when my mom met my step-dad she had really bad credit and owed a lot in back taxes so it’s just an idea. We’ve always had two houses, our main house (which we moved a lot so over about 10 years he had about 7 houses in his name at different times) and a cabin house in the mountains that are both in my step-dad’s name because he has the better credit of the two of them. Then to help my mom get her credit back up, they would buy a car that they could pay off in a couple years (usually 2 or 3 max) and then pay it off in half the time. This got my mom’s credit back up and my step-dad never had any problems getting new mortages or co-signing for a car if my mom needed it.

I hope that made some sense, you can PM me if you want and I can try to explain it a little better.

 

ETA: spelling

Post # 15
Member
3943 posts
Honey bee

Can you work on his credit for a year, and then buy a second property in both your names?

Post # 16
Member
1668 posts
Bumble bee
  • Wedding: March 2012

Have you talked to a tax advisor about the possible tax implications?

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