During a divorce, the focus often remains on immediate concerns such as distributing real property and assets, overlooking life after divorce. The biggest challenge is the lack of knowledge, understanding, and preparedness in how the various pieces of the divorce puzzle fit together and overlap.
Key Questions in Divorce Mortgage Planning
- What is the difference between divorce lending and divorce mortgage planning?
- What is the advantage of having a Certified Divorce Lending Professional (CDLP®) on your divorce team over a traditional loan officer?
The Answer: A LOT!
What is Divorce Mortgage Planning?
This diagram illustrates how the four critical aspects of divorce (Family Law, Financial and Tax Planning, Real Property, and Mortgage Planning) intersect, especially when the home is central. These elements converge, highlighting the importance of comprehensive planning.
Divorce Mortgage Planning is a holistic approach to evaluating mortgage options within the broader context of financial objectives related to divorce. Working directly with the divorce team, a CDLP® understands the intersection of divorce, financial and tax planning, real property, and mortgage planning. The CDLP® integrates the selected mortgage into long and short-term financial and investment goals to minimize taxes, reduce interest expenses, and maximize cash flow.
Our Mission
Our mission is to help divorcing homeowners make informed decisions regarding their home equity solutions and mortgage financing opportunities during and after the divorce. Founded in 2014, the Divorce Lending Association supports ethical lending standards and is dedicated to educating members and providing professional development opportunities for those working with divorcing homeowners.
The Importance of a Robust Professional Divorce Team
This diagram only considers a fraction of possible overlaps, emphasizing the need for a knowledgeable and robust professional divorce team. Key considerations include:
- Capital Gains: Especially relevant in today's real estate market.
- Support Income: Directly affects mortgage planning.
- Mortgage Interest Deduction: Protection may be necessary.
- Property Disposition: It’s not just about who gets the house—are we looking at an equity buy-out or positioning both spouses to purchase new property?
The Advantage of a Certified Divorce Lending Professional (CDLP®)
Knowledge is the key advantage. A Certified Divorce Lending Professional offers:
- Expertise Beyond Guidelines: While any mortgage lender can handle loans for divorced homeowners, a CDLP® goes further by understanding and integrating financial and tax planning strategies.
- Collaboration with Family Law Professionals: Helping divorcing homeowners make informed decisions about their home equity solutions.
- Conflict Resolution: Identifying and resolving contradictions between the marital settlement agreement and mortgage regulations.
Make Informed Decisions with a CDLP®
Schedule a meeting with a Certified Divorce Lending Professional to gain a clearer understanding of the difference between divorce lending and divorce mortgage planning, and see the impact a CDLP® can make.
About the Certified Divorce Lending Professional Program
The Certified Divorce Lending Professional program is offered by the Divorce Lending Association, which brings years of experience in family law, financial and tax planning, real property, and mortgage planning.
Conclusion
As a divorce mortgage planner, the CDLP® helps divorcing homeowners make 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.
Involve a Certified Divorce Lending Professional (CDLP®) early in the divorce settlement process to set the stage for successful mortgage financing in the future.
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