CDLP Perspective in Divorce Mortgage Planning

Your perspective is how you see something regarding situations or topics, the appearance of things relative to one another.

Multiple perspectives are crucial to gaining a complete understanding of a situation. For example, in divorce, different views on different topics can affect the divorcing spouses in different ways—either positively or negatively.

Take the following questions, for example:

  • How would you calculate spousal support when the paying spouse has fluctuating income or an irregular pay schedule?
  • How would you handle spousal support vs. a lump sum payout?
  • How do you evaluate the home equity, the home equity solutions, and the options available?

Your perspective or solution to these questions may satisfy the parties during the settlement process; however, the answer may negatively affect either party when obtaining mortgage financing.

Collaborating with the right team players results in different perspectives and better solutions!

You can’t deny the intersection is real…

Many times in a divorce, we are more focused on curing the problem at hand, i.e., distributing real property and assets, that we forget there is life after divorce. The biggest challenge is the lack of knowledge, understanding, and preparedness of how the various pieces of the divorce puzzle fit together and indeed overlap.

One of the primary keys to a successful divorce is understanding the various puzzle pieces of a divorce involving real property as well as assembling your professional divorce team. This image illustrates just how intersected these four pieces of the divorce puzzle really are when the home itself is center stage. This example only takes into consideration a fraction of possible overlaps; yet really amplifies the need for a very knowledgeable and strong professional divorce team.

CDLP Intersection of Divorce and Mortgage Planning

The intersection of family law, financial and tax planning, real property, and mortgage planning is real.

The solution isn’t as simple as who retains the property and who purchases the new property. 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 reach 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 is the process of evaluating mortgage options in the context of the overall financial objectives of the divorcing couple.

 Working with the professional divorce team and recognizing any potential Capital Gains when selling the marital home is extremely important. When financial and tax planning is part of the divorce settlement agreement, working with a Certified Divorce Lending Professional (CDLP™) is equally as important. A CDLP™ can recognize these strategies and help divorcing borrowers avoid any potential hurdles that may conflict with agency lending requirements.

It is always important to work with an experienced mortgage professional who specializes in working with divorcing clients. A Certified Divorce Lending Professional (CDLP™) can help answer questions and provide excellent advice. Please don’t hesitate to reach out to me directly if I can provide 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.

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