CDLP financial neutral

One of the most crucial team members in the collaborative divorce process is the financial neutral. The financial neutral is an impartial expert who plays a vital role in ensuring a fair and balanced financial evaluation. When the marital home and other real estate assets are primary components of the marital property, having a Certified Divorce Lending Professional (CDLP®) as a financial neutral on your team is highly advantageous.

Avoid Litigation with a CDLP® as a Financial Neutral

Financial issues often lead to breakdowns in divorce negotiations, resulting in litigation. A CDLP® as a financial neutral provides both parties with an unbiased, thorough evaluation of current and future mortgage financing requirements, offering realistic solutions to negotiation obstacles.

Functions of a CDLP® in Collaborative Divorce

Depending on the situation, a CDLP® can perform various functions, including:

  • Assisting with the collaborative process by offering solutions for both spouses to obtain immediate and future mortgage financing.
  • Providing guidance on affordability and financing needs for an Equity Buy-Out and refinancing of the marital home.
  • Analyzing the ability of one spouse to meet mortgage financing guidelines using support income such as maintenance and/or child support.
  • Evaluating debt pay-off scenarios to meet mortgage financing requirements and offering solutions for pay-offs.
  • Identifying and gathering necessary financial documentation to assist with mortgage financing needs.

The CDLP®: Assisting Both Clients and Lawyers

A CDLP® financial neutral focuses on helping clients and lawyers generate feasible mortgage financing options and understand the future financial impact of those options. Financial neutrals must be savvy in mortgage financing issues, keen problem solvers, and able to offer realistic solutions to guide decision-making.

Benefits of Involving a CDLP® in the Divorce Settlement Process

Involving a CDLP® early in the divorce settlement process is beneficial whether both parties are selling the marital home or pursuing an Equity Buy-Out. Ensuring that neither party faces litigation or issues with the final divorce settlement agreement due to mortgage financing challenges is crucial.

Key Issues to Consider:

  • Division of Marital Debt: Addressing how marital debt will be divided can impact the ability to secure mortgage financing.
  • Timeframe and Details of Spousal Support: Understanding the impact of spousal support on mortgage qualification is essential.

Creating Success for Both Parties Post-Divorce

Ensuring that both parties are set up for success post-decree is vital. Divorce can be a crisis, and providing a lifeline through expert financial guidance is necessary. A CDLP® can offer a complete analysis of mortgage financing requirements, providing a smooth post-divorce transaction and removing unnecessary burdens and frustrations.

Work with a Certified Divorce Lending Professional (CDLP®)

Always work with a Certified Divorce Lending Professional (CDLP®) when dealing with divorce and real estate or mortgage financing. Their expertise ensures a smooth and successful transition during the divorce process.

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.

Copyright 2024 Divorce Lending Association. No portion of this post may be reproduced without the written consent of the Divorce Lending Association.

 

 
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