I Make $240K and I Used My Divorce Settlement to Buy a House

Thinking about buying a home, but not sure how to afford it? Welcome to the Down Payment Diaries, where real people spill about how they saved and splurged on their path to homeownership. If you’d like to submit your own Down Payment Diary, please fill out the form here.

Today, a painter in New Jersey shares how she used her divorce settlement to buy a townhouse where she wouldn’t have to labor over yard work.

Make Money Online The basics

Age: 56

Pronouns: She/her

Household setup: Partnered, six adult children, one dog

Occupation: Painter 

Household income: $240,000 

Make Money Online What was your home experience when you were growing up?

My parents owned the same home my entire childhood. I always thought I would own a place of my own. I married in 1991, and three years later, we bought the home we lived in for 30 years.

Make Money Online What happened next? 

I got divorced. The whole thing came as a surprise. We were “the happy couple.” Our kids were thriving. We walked the dogs twice a day, holding hands. Our house was perfect. I devoted years to renovating it. I never thought I would say goodbye to that house unless it was to leave for a nursing home. The divorce agreement stated I would get the house, but it didn’t work out that way. Looking back, I wouldn’t have wanted to live with that ghost.

Make Money Online When did you start thinking about buying again?

I’d been divorced for 2.5 years and living in a rental. I was dating someone I met when I was 12 and dated for several years in high school. We went our own ways, staying friends for decades. After we both got divorced, we reconnected as friends. It grew, and now we’re together.

Make Money Online What were you looking for?

I was ready to start figuring out how I wanted the next stage of life to look, but I was struggling to picture it. I was considering everything from fixer-uppers to new construction and newly updated homes. I was open to single-family houses or condos. 

Make Money Online Did you have any non-negotiables?

I wanted at least two bedrooms, two bathrooms, and either a basement or a garage. Apartment living was too tight, but I really liked the amenities of an apartment complex and the community feel of it all. I also felt  “been there, done that” about yard work. At this stage of life, I just want to enjoy myself.

Make Money Online How long did you look before finding your home?

Six months.

Make Money Online What was the search like?

I looked at homes online and attended several open houses. In person, I probably saw about a dozen.

Make Money Online Did you make any other offers?

I did, and looking back, I’m glad they didn’t work. One was an older home that would have needed a lot of work. One was a lot more updated, but it sparked a bidding war, going for $110,000 over asking.

Make Money Online How did you know this was the one?

My Realtor®, Linda Thell, knew before I did. One day, after seeing a condo that ended up being darker and gloomier than the photos portrayed, she took me to see a townhome. She kept reminding me to focus on things you can’t change about a home: the location and what’s also important for me as a painter—the light. As soon as I walked in, I knew she was right. The light was gorgeous. 

Make Money Online What else did you love about the home?

It had the layout I wanted with a garage and a finished basement that my partner and I will make into an office space. The community has biking paths, pools, and tennis courts and is responsible for all the yard work and snow removal. 

Make Money Online Where did the down payment come from?

It came from the divorce. My ex was the higher earner and would have been required to pay alimony but, in New Jersey, if the receiver lives with a new partner, alimony is canceled. I’m a relationship person, and knew I would one day be in another relationship. So I opted for a cash settlement. I just knew that in the future, I didn’t want to make a choice between the person I was seeing or the alimony payments.

Make Money Online What was the negotiation process like?

We put in an offer right at asking. My Realtor said that if they didn’t take our offer, that I was going to buy a similar townhome that was $30,000 less but needed renovations. I would have taken that home, but preferred this one. Her tactic worked and I got the townhome at asking price, which is no small feat for this market.

Make Money Online What are your monthly fees like?

The monthly HOA is $445, which is lower than many nearby. I think it’s worth it. I know how many thousands it takes to maintain a pool and yard.

Make Money Online What’s your long-term plan?

We plan to stay here for the next 10 to 12 years before retiring, possibly in the northern Poconos.

Make Money Online What do you love most about your new home?

The light. In daily living and mental health, it’s so important to me.