CDLP's Divorce Mortgage Planning Phases

Divorce Mortgage Planning is a holistic approach to evaluating mortgage options within the overall financial objectives of divorcing situations.

Role of a Certified Divorce Lending Professional (CDLP®): The CDLP® collaborates with the professional divorce team, including attorneys, financial advisors, and mediators, to integrate the mortgage into the long-term and short-term financial and investment goals, aiming to minimize taxes, reduce interest expenses, and maximize cash flow.

Benefits of Working with a CDLP®: Engaging a Certified Divorce Lending Professional can streamline the mortgage financing process during divorce settlements, leading to more successful outcomes for divorcing homeowners. Understanding the phases of Divorce Mortgage Planning is crucial.

4 Phases of the CDLP®'s Divorce Mortgage Planning Model:

  1. Vetting the House:

    • Examines ownership, property taxes, and valuation methods.
    • Details such as property ownership, tax status, value, and equity are crucial.
    • These factors influence the type of mortgage financing available, independent of credit scores and income sources.

  2. Qualifying Income:

    • Analyzes various income sources like employment, support income, or no income.
    • Collaborates with the divorce team to create qualifying income through financial and tax planning.
    • This phase can be challenging for clients with sufficient cash flow but non-qualifying income sources.

  3. Consumer Debt Analysis:

    • Strategically evaluates the assignment of marital or individual debt.
    • Aims to position divorcing spouses for better mortgage financing terms.

  4. Home Equity Solutions:

    • Helps divorcing homeowners make informed decisions about home equity solutions and mortgage financing during and after the divorce.

The Importance of CDLP® Knowledge and Experience: A CDLP®'s expertise in family law, financial and tax planning, real property, and mortgage financing is invaluable. Their comprehensive understanding aids the divorce team and homeowners throughout the settlement process.

Working with a CDLP®: Incorporating Divorce Mortgage Planning into the divorce settlement can help both spouses secure new mortgage financing post-divorce.

Get the Divorcing Your Mortgage Homeowner Workbook: Contact a CDLP® today for a copy of the Divorcing Your Mortgage Homeowner Workbook. This guide covers credit, real estate, and mortgage financing after divorce, helping you stay organized and prepared whether refinancing the marital home in an Equity Buy-Out situation or preparing to sell and purchase a new home post-divorce.

This is for informational purposes only and not for the purpose of providing legal or tax advice. You should contact an attorney or tax professional to obtain legal and tax advice. Interest rates and fees are estimates provided for informational purposes only and are subject to market changes. This is not a commitment to lend. Rates change daily – call for current quotations.  The information contained in this newsletter has been prepared by, or purchased from, an independent third party and is distributed for consumer education purposes.

Copyright 2021—All Rights Divorce Lending Association

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