Your perspective influences how you interpret situations and topics, shaping the appearance of things relative to one another. Multiple perspectives are crucial to gaining a comprehensive understanding of any situation. In divorce, varying viewpoints on different topics can impact the divorcing spouses in diverse ways—either positively or negatively.
Consider the following questions:
- How would you calculate spousal support when the paying spouse has fluctuating income or an irregular pay schedule?
- How would you handle spousal support versus a lump sum payout?
- How do you evaluate home equity, home equity solutions, and the available options?
Your perspective or solution to these questions might satisfy the parties during the settlement process; however, the answer may negatively affect either party when obtaining mortgage financing.
Collaborating with the Right Team for Better Solutions
You can’t deny that the intersection of various factors is real. Often in a divorce, the focus is on addressing the immediate problem, such as distributing real property and assets, forgetting that life continues after divorce. The biggest challenge is the lack of knowledge, understanding, and preparedness regarding how the various pieces of the divorce puzzle fit together and overlap.
One of the primary keys to a successful divorce is understanding the various puzzle pieces involving real property and assembling your professional divorce team. The image below illustrates how interconnected these four pieces of the divorce puzzle are when the home itself is center stage. This example considers only a fraction of possible overlaps but amplifies the need for a knowledgeable and strong professional divorce team.
The Intersection of Family Law, Financial Planning, and Mortgage Planning
The solution isn’t as simple as determining who retains the property and who purchases a new one. The structure of spousal support may directly affect income for an equity buy-out. Details about the real property may impact the options available for mortgage financing. The verbiage in the marital settlement agreement may affect the ability of the vacating spouse to purchase a new home.
Home equity solutions extend beyond the disposition of real property. Incorporating divorce mortgage planning into the settlement process results in a more positive outcome for both spouses and their families. Divorce mortgage planning involves evaluating mortgage options in the context of the overall financial objectives of the divorcing couple.
Why Work with a Certified Divorce Lending Professional (CDLP®)?
When financial and tax planning is part of the divorce settlement agreement, working with a Certified Divorce Lending Professional (CDLP®) is crucial. A CDLP® can identify strategies and help divorcing borrowers avoid potential hurdles that may conflict with agency lending requirements.
- Expertise in Divorce Mortgage Planning: CDLP®s have specialized knowledge in handling the complexities of divorce-related mortgage issues.
- Comprehensive Financial Analysis: They provide detailed analysis and strategic recommendations, aligning with the homeowner’s financial goals and post-divorce plans.
- Collaborative Approach: CDLP®s work directly with divorce attorneys, financial planners, and real estate agents to ensure a cohesive plan addressing all aspects of the divorce and financial situation.
Ensure a Positive Outcome with Professional Guidance
Working with an experienced mortgage professional specializing in divorcing clients is essential. A Certified Divorce Lending Professional (CDLP®) can answer questions and provide excellent advice. Please don’t hesitate to reach out to me directly if you need additional information.
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.
Copyright 2021—All Rights Divorce Lending Association, LLC
