1. Can one spouse keep the house, and how is the decision made?
The decision is typically part of the divorce settlement, considering factors like financial capability and agreement between spouses. This is often the first question we get from a divorcing homeowner: “Can I afford to keep the house?”
2. What happens to the marital home during the divorce process?
The martial home is a significant asset – in many cases, the largest asset owned by the divorcing couple. The division of the home’s equity is a critical aspect of settlement negotiations.
3. Is it possible to refinance the mortgage into one person's name?
Yes, it's possible to refinance in one person's name, often done to remove the other spouse from financial obligations. However, due to current market conditions, this is not always the best approach. Our expertise is critical in helping navigate decisions like this.
4. How is home equity divided between spouses in a divorce?
Home equity division is decided through negotiations or court decisions, aiming for a fair distribution. And just because equity exists in the home does not mean that the refinancing the home – to access the equity – is the best way to accomplish the division of this equity.
5. What role does the marital settlement agreement play in mortgage decisions?
The settlement agreement outlines – among other things - how the mortgage will be handled, including responsibilities for payments and potential refinancing. The settlement agreement will also be our roadmap to obtaining post-divorce mortgage financing. Any important considerations that might impact your ability to obtain a mortgage – such as qualifying income from spousal or child support payments – MUST be clearly articulated in the settlement. Our hand-in-glove collaboration with the divorce team ensures the best possible outcome for you as it relates to obtaining mortgage financing post-divorce.
6. Can I qualify for a new mortgage while going through a divorce?
It's possible, but lenders consider the financial changes due to divorce; consult with a mortgage professional for guidance. As long as you have a pending divorce case – that is, your case has been filed with the Courts but not completed – you will not be able to obtain mortgage financing. However, we often use this time to strategize about the ideal terms of a settlement to help you accomplish your goals.
7. What happens if the house is sold, and how are the proceeds divided?
The proceeds from the sale are divided as per the divorce settlement agreement, addressing the equity distribution. However, even the language used in the divorce judgment can have significant impacts regarding the division of these proceeds.
8. How does spousal support or child support impact mortgage eligibility?
Support payments can influence eligibility; lenders often consider these when assessing financial stability. If a person requires support payments to qualify for their new mortgage, special consideration must be given to the timing of these payments.
9. How much does it cost to hire a CDLP®️?
CDLPs do not charge any consulting fee for the work that we do. We believe that clarity and peace of mind are priceless, and we are honored to have the privilege to provide guidance and professional input to assist our divorcing client. The only time we are compensated is when a client closes a mortgage transaction with us – and even then, we are paid directly by the lender. We never charge a consulting fee!
10. What can a CDLP do that other lenders can’t?
As a CDLP®️, I specialize in understanding the intersection of mortgage rules and the intricacies of the divorce process. I am trained to identify potential conflicts between proposed divorce settlement agreements and mortgage lending guidelines. Working closely with the professional divorce team, I find strategic solutions for creating ideal outcomes for the divorcing homeowner.
Even in the tumult of divorce, my approach to mortgage planning brings clarity and peace of mind to my clients and the divorce team.
If you’re contemplating or experiencing divorce, we can help provide clarity to your post-divorce financial future. Set up your no-cost, confidential consultation.
