The CDLP as a Financial Neutral

One of the most important team members in the collaborative divorce process is the financial neutral. The financial neutral is an impartial expert in his or her field. When a primary asset of the marital property is the marital home and other real estate assets, having a Certified Divorce Lending Professional (CDLP) as a financial neutral on your team becomes increasingly desirable.

In many divorce settings, negotiations break down over financial issues or concerns, oftentimes leading to litigation. The CDLP as a financial neutral offers both parties a balanced, thorough financial evaluation of the current mortgage and future mortgage financing requirements and offers realistic solutions to obstacles in negotiations.

Depending on each individual situation, the CDLP can perform a variety of functions in a collaborative divorce, such as: 

• Assisting with the collaborative process by offering solutions and needs for both spouses to obtain immediate and future mortgage financing.

• Providing guidance on the affordability and financing needs to support an Equity Buy-Out and refinance of the marital home.

• Offering an analysis of the ability for one spouse to meet mortgage financing guidelines using support income such as maintenance and/or child support as qualifying income.

• Analyzing debt pay-off situations to meet mortgage financing requirements and offering solutions for pay-offs.

• Identifying and gathering necessary financial documentation to assist with mortgage financing needs.

In all scenarios, the CDLP financial neutral is focused on assisting clients and lawyers in generating feasible mortgage financing options and understanding the future financial impact of those options. Financial neutrals should not only be savvy when it comes to various mortgage financing issues but also be keen problem solvers and be able to offer realistic solutions to guide decision making.

Involving a CDLP during the divorce settlement process is just as beneficial when both parties are selling the marital home and purchasing in the future as it is during an Equity Buy-Out. 

Obviously, if neither party were able to qualify for mortgage financing to purchase a home post-decree, it may not cause further litigation or issues with the final divorce settlement agreement, but our duty as divorce professionals is to take into consideration their future plans and address all of the issues that might stand in their way?

The division of marital debt and the timeframe and details of spousal support are just a couple of issues that can stand in their way of purchasing a new home or successfully refinancing the marital home.

We want to make sure that both parties are set up for success post-decree. This is a family in crisis. The most intimate thing in their life has failed. They need someone to throw them a lifeline even if they don’t realize it.

Involve a Certified Divorce Lending Professional (CDLP) in the early settlement stages and obtain a complete analysis of the mortgage financing requirements. This essential and necessary step can help provide a smooth transaction post-divorce and remove unnecessary burdens and frustrations.

Always work with a Certified Divorce Lending Professional (CDLP) when going through a divorce and real estate or mortgage financing is present.

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.

Copyright 2020 Divorce Lending Association. No portion of this post may be reproduced without the written consent of the Divorce Lending Association.