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Having a strong, creative divorce team can solve common concerns regarding the marital home or purchasing a new home post-divorce. Couples contemplating divorce often ask, "What are we legally entitled to?" It's natural to seek this information for divorce planning and setting expectations. Since divorce is a legal process, people turn to "legal entitlements" as a measure.
The Power of Creative Solutions
Sometimes, you need to think outside the box. Creative solutions can apply to parenting plans, income allocation, and the distribution of marital assets and liabilities, including the disposition of the marital home and securing mortgage financing for one or both spouses. Many believe that creative thinking strikes at random, but it can be intentionally cultivated through existing information.
Example of Creative Problem-Solving:
Consider a scenario where the wife is retaining the marital home and is awarded spousal support for three years. She meets the proof of receipt requirement for qualifying income but may not meet the continuation requirement. A creative solution could involve lowering the monthly support payment and extending the payment period to 42 months. As long as the lower payment meets mortgage qualification needs, the 36-month continuation post-loan closing is satisfied.
Why Creative Thinking is Critical
Getting stuck in routine thought patterns can hamper innovation and fail to serve the best interests of the divorcing couple. Creative thinking offers multiple solutions to any problem and helps recognize innovative solutions more quickly, benefiting both personal and professional life.
Role of Certified Divorce Lending Professionals (CDLP®)
CDLP®s have an immense capacity for creative thinking in divorce, real property, and mortgage financing scenarios. Their background knowledge allows them to work directly with the professional divorce team and divorcing homeowners to develop creative solutions. Whether it’s refinancing the existing mortgage on the marital home or ensuring both spouses can purchase new homes once the marital home is sold, CDLP®s play a crucial role.
How CDLP®s Assist:
- Identifying sources of qualified income for equity buy-out refinancing or developing plans for future mortgage financing.
- Finding opportunities for the vacating spouse to purchase a new home while still on the note to the marital home. This includes ensuring court-ordered assignment of debt and proper verbiage in the marital settlement agreement.
Successful Divorce Negotiation
Effective communication and strategic negotiations are key to successful divorce settlements, allowing both parties to come out whole or at least on the road to recovery. Working with a Certified Divorce Lending Professional and incorporating divorce mortgage planning into the negotiation process results in better solutions and outcomes for the divorcing couple. CDLP®s provide a unique perspective, ensuring both the divorce team and homeowners have a solid plan for obtaining mortgage financing in the future.
Contact a CDLP® for Assistance
Do you have questions about how divorce may impact your ability to obtain mortgage financing? A Certified Divorce Lending Professional’s (CDLP®) knowledge and experience can make the transition smoother and more successful. Working with a CDLP® and incorporating Divorce Mortgage Planning into the divorce settlement may help both spouses secure new mortgage financing post-divorce.
Contact a CDLP® today for a copy of the Divorcing Your Mortgage Homeowner Workbook, a guide to credit, real estate, and mortgage financing after divorce. This workbook will help you get organized, be prepared, and understand your mortgage financing position, whether you need to refinance the marital home in an Equity Buy-Out situation or prepare 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 2022—All Rights Divorce Lending Association
