Selling home during divorce

Going through a divorce brings on extreme emotions, and having to deal with the thought of both selling a home and then buying a new one may be one of the last things you'd want. Try to mitigate some of this emotion, and think of selling and buying a home as a business decision.

3 Rules to Selling the Marital Home

  1. Don't be married to the house. 
  2. Don't sabotage your own profits by letting anger get in the way of successfully selling the property.
  3. Make copies of all important documentation prior to leaving the house including tax documents, mortgage and purchase documents, and anything else you think could be important.

Selling the marital home and preparing to purchase a new home after the divorce may not sound any different than buying a home as a married couple. However, obtaining new mortgage financing post-decree may be anything but traditional.

The details of the divorce settlement may affect both spouses trying to finance a new home.

  • For the spouse buying a new home who is receiving support income, whether spousal or child support, there are specific receipt guidelines that must be met in order for that income to be considered as qualified income for mortgage financing purposes.
  • For the spouse buying a new home and still obligated on the mortgage to the marital home, the verbiage in the divorce settlement agreement may make it impossible to obtain new mortgage financing.

Working with a Certified Divorce Lending Professional (CDLP®) and incorporating Divorce Mortgage Planning into the divorce settlement may help both spouses obtain new mortgage financing post-divorce. 

Contact me today for a copy of my 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 are needing to refinance the marital home in an Equity Buy-Out situation or prepare to sell and purchase a new home post-divorce.

As a divorce mortgage planner, the CDLP® can help divorcing homeowners make a more informed decision regarding their home equity solutions while helping the professional divorce team identify any potential conflicts between the divorce settlement, home equity solutions as well as real property issues. 

Divorce Mortgage Planning is a holistic approach to the process of evaluating mortgage options in the context of the overall financial objectives as they relate to divorcing situations. Working directly with the divorce team, a CDLP® understands the intersection of divorce, tax, real estate, and mortgage financing. The role of the CDLP® is to help integrate the mortgage selected into the overall long and short-term financial and investment goals, to help minimize taxes, to minimize interest expense, and maximize cash flow.

Involving a Certified Divorce Lending Professional (CDLP®) early in the divorce settlement process can help the divorcing homeowners set the stage for successful mortgage financing in the future. 


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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