When you find a “the” house you love, it is natural to want to act quickly before another buyer can swoop in. Especially if you have just endured a rough separation from your ex, starting the next chapter with a new home is exciting. But do not let the excitement and the stress of the home purchasing process distract you. It can be easy for those who are separated – but not yet divorced – to forget a key document: the Free Trader Agreement.

If you are in the process of divorce, you may hear rumors about the “Free Trader Agreement.” But do you know what this agreement entails? When you are legally married and buy a home, generally you are required to put your spouse’s name on the deed. This obligation can be frustrating for North Carolina separated spouses who are waiting the statutory one year before filing for divorce but who want to purchase a new house now, and not wait on entry of the divorce judgment. If a separated spouse does not want the other spouse on their new house, plans to purchase a home may need to be paused. A Free Trader Agreement could be the key to prevent such frustrations and delays.

A Free Trader Agreement allows separated spouses to buy property without the other spouse’s involvement. As alluded to, each, separated spouse can “freely trade” as if they are not married. Therefore, each spouse can purchase a new home as their sole and separate property and financial responsibility. The Free Trader Agreement may be a separate document or it may be included as part of a premarital/prenuptial, postnuptial, or separation agreement. Once executed, the purchasing spouse may record the Free Trader Agreement with the Register of Deeds in relation to previous or future property purchases. Since the Free Trader Agreement is recorded on the public record, many people opt to have a separate Free Trader Agreement in addition to the other agreements. This avoids making any personal information public. 

If you or someone you know has questions about a Free Trader Agreement, our Modern Legal Team is here to help.

Please note: these educational materials are based on North Carolina law where my legal practice is based. While the insights may have wide applicability, readers should consult with an attorney regarding the specific laws in their state or country. 

Written by: Sabrina M. Frenette