What is Unlearning?

Unlearning is the intentional process of letting go of outdated mindsets and behaviors that were once beneficial but now hinder progress. It’s not about forgetting or discarding knowledge but consciously moving away from obsolete information and embracing new insights to enhance decision-making and action.

How Knowledge Changes

It’s easy to rely on learned knowledge, but as the divorce market evolves, so must our understanding. To stay relevant, we must continually adapt, learn, and unlearn.

“Knowledge grows, and simultaneously it becomes obsolete as reality changes… Understanding involves both learning new knowledge and discarding obsolete and misleading knowledge.” – Bo Hedberg, How Organizations Learn & Unlearn

Traditionally, divorcing spouses are referred to a mortgage professional only after the divorce is finalized. This approach can hinder successful post-divorce mortgage financing. Integrating divorce mortgage planning into the divorce process from the beginning is crucial for better outcomes for both parties.

The Importance of Adapting

Successful divorce professionals must be willing to adapt by learning new information and unlearning outdated practices. Changing behavior and perspectives can significantly impact outcomes. Often, the focus in divorce is on resolving immediate issues, like property distribution, without considering life after divorce. The challenge lies in understanding how different aspects of the divorce process interconnect and affect future financial stability.

For instance, the wording in the divorce settlement agreement, the structure of support income, and the division of assets can directly impact the ability to secure mortgage financing. Conversely, the chosen mortgage option can influence financial and tax planning set up during the divorce.

What is Divorce Mortgage Planning?

Divorce Mortgage Planning is a comprehensive approach to evaluating mortgage options within the context of overall financial objectives related to divorce. A Certified Divorce Lending Professional (CDLP®) works directly with the divorce team, understanding the intersection of divorce, financial and tax planning, real property, and mortgage planning. The CDLP® integrates the selected mortgage into the long- and short-term financial and investment goals, aiming to minimize taxes, reduce interest expenses, and maximize cash flow.

The Four Phases of Divorce Mortgage Planning

Incorporating the four phases of divorce mortgage planning into the traditional divorce settlement process helps homeowners make informed decisions regarding home equity solutions and mortgage financing opportunities during and after the divorce. Unlearning the traditional mindset around divorce, real property, and mortgage financing allows the professional divorce team to offer new perspectives and better solutions for divorcing homeowners. Involving a CDLP® early in the settlement process can set the stage for successful future mortgage financing.

Why Work with a Certified Divorce Lending Professional?

It’s essential to work with a mortgage professional specializing in divorcing clients. A Certified Divorce Lending Professional (CDLP®) can provide valuable insights and guidance. Feel free to contact me directly if you need more information or assistance.

Disclaimer

This material is for informational purposes only and does not constitute legal or tax advice. Please consult an attorney or tax professional for specific guidance. Interest rates and fees are subject to market changes. This is not a commitment to lend. Rates change daily—please call for current quotations. The information in this newsletter is prepared by or purchased from an independent third party and is distributed for consumer education purposes.

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