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.
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.
Always work with a Certified Divorce Lending Professional (CDLP) when going through a divorce and real estate or mortgage financing is present.
Copyright 2019 Divorce Lending Association. No portion of this post may be reproduced without the written consent of the Divorce Lending Association.