Collaboration in divorce is a recursive process where multiple parties work together to achieve shared goals. It involves teamwork to bring a typical divorce settlement together, including the efforts of divorcing clients, attorneys, financial planners, mediators, real estate agents, appraisers, and mortgage professionals.
The Importance of a Financial Neutral in Collaborative Divorce
One of the most crucial team members in the collaborative divorce process is the financial neutral. A financial neutral is an impartial expert in their field. 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 becomes highly desirable.
Avoid Litigation with a CDLP®
In many divorce scenarios, negotiations break down over financial issues, often leading to litigation. As a financial neutral, a CDLP® offers both parties a balanced and thorough financial evaluation of the current mortgage and future mortgage financing requirements, providing realistic solutions to negotiation obstacles.
Functions of a CDLP® in the Collaborative Process
Depending on the situation, a CDLP® can perform various functions in a collaborative divorce, such as:
- Assisting with the collaborative process by offering solutions for both spouses to obtain immediate and future mortgage financing.
- Providing guidance on the affordability and financing needs to support an Equity Buy-Out and refinance of the marital home.
- Offering an analysis of one spouse’s ability to meet mortgage financing guidelines using support income such as maintenance and/or child support as qualifying income.
- Analyzing debt pay-off situations to meet mortgage financing requirements and offering solutions for pay-offs.
- Identifying and gathering necessary financial documentation to assist with mortgage financing needs.
The Focus of a CDLP® as a Financial Neutral
In all scenarios, a CDLP® financial neutral focuses on assisting clients and lawyers in generating feasible mortgage financing options and understanding the future financial impact of those options. Financial neutrals should be savvy in various mortgage financing issues and be keen problem solvers who can offer realistic solutions to guide decision-making.
Questions About How Divorce Can Impact Mortgage Financing?
A Certified Divorce Lending Professional’s (CDLP®) knowledge and experience can make the transition smoother and more successful for all parties involved. Working with an experienced mortgage professional who understands the numerous ways divorce affects mortgages is a significant benefit to both the divorce team and the divorcing homeowners.
Always Work with a Certified Divorce Lending Professional (CDLP®)
When dealing with divorce and real estate or mortgage financing, always work with a Certified Divorce Lending Professional (CDLP®). Their expertise ensures a smooth and successful transition during the divorce process.
This is for informational purposes only and not to provide 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.
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