What is a Financial Neutral in a Divorce?

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 estate is the marital home and other real estate assets, having a Certified Divorce Lending Professional (CDLP™) as a financial neutral on the divorce 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 of 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. 

A successful divorce settlement is a result of putting the pieces of the puzzle together in such a manner that both divorcing spouses come out of the divorce whole. Each member of the professional divorce team should bring value and perspective that benefits the overall outcome and success.

Working with a Certified Divorce Lending Professional (CDLP™) and incorporating Divorce Mortgage Planning into the divorce settlement may help both spouses obtain new mortgage financing post-divorce. 

Contact a CDLP™ today for a copy of the Divorcing your Mortgage Homeowner Workbook, a guide to credit, real estate, and mortgage financing after divorce. This workbook will help you get organized, be prepared, and understand your mortgage financing position whether you are needing to refinance the marital home in an Equity Buy-Out situation or prepare to sell and purchase a new home post-divorce.

As a divorce mortgage planner, the CDLP™ can help divorcing homeowners make a more informed decision regarding their home equity solutions while helping the professional divorce team identify any potential conflicts between the divorce settlement, home equity solutions as well as real property issues. 

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