In the collaborative divorce process, one of the most crucial team members is the financial neutral. This impartial expert brings a wealth of knowledge and balance to the table. When the marital estate includes significant assets like the marital home and other real estate, having a Certified Divorce Lending Professional (CDLP®) as a financial neutral becomes highly beneficial.
Overcoming Financial Obstacles with a CDLP®
Divorce negotiations often break down due to financial issues, potentially leading to litigation. The CDLP®, acting as a financial neutral, provides both parties with a comprehensive financial evaluation of the current mortgage and future mortgage financing needs. This impartial assessment helps identify realistic solutions to financial obstacles during negotiations.
Key Functions of a CDLP® in Collaborative Divorce
Depending on the specific circumstances of the divorce, the CDLP® can perform a variety of essential functions, including:
- Assisting with Mortgage Solutions: Offering tailored solutions for both spouses to secure immediate and future mortgage financing.
- Guidance on Equity Buy-Outs: Providing expert advice on affordability and financing needs to support an Equity Buy-Out and refinancing of the marital home.
- Support Income Analysis: Analyzing the ability of a spouse to meet mortgage financing guidelines using support income such as alimony and/or child support.
- Debt Pay-Off Strategies: Evaluating debt pay-off situations to meet mortgage financing requirements and proposing effective solutions.
- Financial Documentation: Identifying and gathering necessary financial documentation to facilitate mortgage financing.
The Impact of a CDLP® on Divorce Settlements
In all scenarios, the CDLP® financial neutral focuses on assisting clients and lawyers in generating feasible mortgage financing options and understanding their future financial impact. A CDLP® must not only be knowledgeable about various mortgage financing issues but also be a skilled problem solver, offering realistic solutions to guide decision-making.
Achieving a Successful Divorce Settlement
A successful divorce settlement involves putting together the pieces of the puzzle so that both spouses emerge from the divorce on solid ground. Each member of the professional divorce team should add value and perspective that benefits the overall outcome and success of the settlement process.
The Benefits of Working with a CDLP®
Working with a Certified Divorce Lending Professional (CDLP®) and incorporating Divorce Mortgage Planning into the divorce settlement can help both spouses secure new mortgage financing post-divorce. Contact a CDLP® today for a copy of the Divorcing Your Mortgage Homeowner Workbook. This guide 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.
Why Choose a CDLP®?
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 any 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.
Early Involvement for Better Outcomes
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.
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.
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