Your perspective shapes how you view situations and topics, influencing the appearance of things relative to one another. Multiple perspectives are crucial for gaining a complete understanding of any situation, especially in divorce. Different viewpoints can affect divorcing spouses in various ways—both positively and negatively.
Key Questions in Divorce Mortgage Planning
Consider these important questions:
- How do you calculate spousal support when the paying spouse has fluctuating income or an irregular pay schedule?
- How should you handle spousal support versus a lump sum payout?
- How do you evaluate home equity, home equity solutions, and available options?
While your perspective or solution may satisfy the parties during the settlement process, the answers may negatively impact either party when obtaining mortgage financing. Collaborating with the right team players results in different perspectives and better solutions.
Determining Property Value: Appraisal vs. CMA
Even determining the value of real property depends on perspective. The two most common methods are obtaining an appraisal from a licensed appraiser or having a real estate professional provide a Comparative Market Analysis (CMA). Both methods offer an opinion of value, and no two will ever provide the same value. The primary difference is perspective:
- Appraisal: Completed by a licensed residential appraiser who bases their opinion on recent comparable home sales data.
- CMA: Completed by a licensed real estate professional who bases their opinion on what the property may potentially sell for in the current real estate market.
While both opinions of value are valid, understanding the perspective of each opinion and how the two methods apply to the marital home is crucial. When one spouse retains the marital home and refinances, an appraisal may be the better option. If considering a sale of the marital home, a CMA may be more appropriate.
The Role of a CDLP® in Divorce Mortgage Planning
A successful divorce settlement results from piecing the puzzle together so both spouses come out whole. Each member of the professional divorce team should bring value and perspective that benefit the overall outcome and success.
As a Certified Divorce Lending Professional (CDLP®), a divorce mortgage planner can help divorcing homeowners make more informed decisions regarding their home equity solutions. They also help the professional divorce team identify potential conflicts between the divorce settlement, home equity solutions, and real property issues.
Early Involvement for Better Outcomes
Involving a Certified Divorce Lending Professional (CDLP®) early in the divorce settlement process can help divorcing homeowners set the stage for successful mortgage financing in the future.
Contact a CDLP® Today
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.
Conclusion
As a divorce mortgage planner, the CDLP® can help divorcing homeowners make more informed decisions regarding their home equity solutions. They assist the professional divorce team in identifying potential conflicts between the divorce settlement, home equity solutions, and real property issues.
Divorce Mortgage Planning is a holistic approach to evaluating mortgage options within the context of overall financial objectives as they relate to divorcing situations. By 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 integrate the chosen mortgage into long and short-term financial and investment goals, minimize taxes, reduce interest expenses, and maximize cash flow.
Involving a Certified Divorce Lending Professional (CDLP®) early in the divorce settlement process can help set the stage for successful mortgage financing in the future.
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