How to keep your home in Divorce… Denver Divorce Realtor, Elizabeth Hotz went through her own divorce and kept her house with minimal disruption to her family.
The path to divorce is not a straight line. There are stops and starts… looking backward while pushing ahead. And often, you feel like you are all alone.
Undoubtedly, navigating the winding road of separation and divorce was one of the most challenging experiences of my life. Reflecting on my own journey, I vividly remember how daunting the financial aspects of divorce were for me.
Initially, the thought of creating and supporting two separate households was totally paralyzing. I knew I needed help. So, amidst grieving my relationship, raising two small boys, and running my own business, I devoted all of my free time to researching and developing a solid plan.
To do this, I found myself engaging with a variety of professionals including lenders, wealth managers, appraisers, mediators, attorneys, counselors, and even a few psychics (ha!). They all contributed to guiding me through the complexities of my divorce. Now, almost four years later, I am so happy to see that there are even more resources and options are available to support those facing similar challenges.
Keeping Your Home In a Separation May Be an Option!
In my real estate business, I often find myself working with individuals navigating this significant life transition. I strive to stay informed about the latest trends and resources in order to help them with this process. Recently, I attended a Divorce & Lending class in Denver led by Karla Kyte, a Certified Divorce Lending Professional. It was an eye-opening experience to say the least! I WISH I had had access to her expertise during my own divorce journey. Karla, the founder of My Divorce Mortgage Planning, aims to help clients and their soon-to-be ex-partners develop strategies for managing and growing real estate assets post separation and divorce.
Whether it’s maintaining the family home or opening the door to a new home, I love that Karla’s goal for all parties is homeownership… and her vast mortgage experience knows how to get you there! In this article, I invite you to explore how collaborating with a Certified Divorce Lending Professional (CDLP) can empower you to navigate your finances effectively and reach your homeownership goals while navigating your divorce. What is often a legal option, is often not a mortgage option and that’s why it is crucial to understand what you are agreeing to while in the divorce process.
What a Certified Divorce Financial Planner Does
A Certified Divorce Lending Professional (CDLP) is a mortgage lender certified in Divorce who works with divorcing clients, during their divorce, to make sure that what they are settling on in terms of the home/mortgage that can actually be accomplished in the end. The goal is to put together a strategy so that both parties’ income and obligations have been (or will be) properly allocated in order to qualify for either a mortgage moving forward to keep the marital home or to purchase a new home. And, if one of these options is not obtainable for one party, what needs to be done so they can qualify in the near future.
Making sure that the divorce settlement is done right the first time saves clients time and money in post decree modifications. Many times I’ve worked with divorcing clients who made agreements in their divorce decree for someone to keep the house, only to find out that they could not. Or paid to refinance their current mortgage only to discover they could have assumed it at a low cost and kept their current rate. Revisiting your divorce decree after the fact not only brings up the painful emotions of divorce all over again, but it racks up attorney fees. Not to mention, that the courts are extremely backed up, which draws out the process even more. Working with a CDLP can eliminate the guesswork and help set up both parties for success from the beginning of the divorce process.>
How a CDLP Can Help with Real Estate During Divorce
1. Evaluating Your Current Property
If you and your spouse own a home together, a CDLP can help you in these important ways.
- Determine your ability to qualify for a new mortgage to keep your home or assume the current mortgage on your home
- Strategize to qualify for a mortgage on a new home
- Promote mediation and collaboration between parties (and their attorneys) to find mutually beneficial solutions
Planning for Future Homeownership
If you’re looking to purchase a new home after divorce, a CDLP can also help.
- Analyzing your post-divorce budget and income
- Determining how much house you can afford
- Exploring various mortgage options
- Helping you understand the impact of alimony/child support and credit implications on your homebuying power
3. Navigating Complex Real Estate Scenarios
In cases involving multiple properties or investment real estate, a CDLP provides additional expertise.
- Managing rental properties post-divorce
- Structuring buyouts or property transfers
Benefits of Working with a CDLP for Homeownership Goals
1. Objective Financial Analysis: A CDLP provides an unbiased assessment of your financial situation, helping you make informed decisions about real estate and homeownership.
2. Long-Term Planning: Instead of focusing solely on the immediate divorce settlement, a CDLP helps you plan for your long-term financial stability, including future homeownership goals.
3. Tax Efficiency: CDLPs understand the tax implications of various real estate decisions, helping you minimize tax burdens and maximize your financial resources for future home purchases.
4. Realistic Expectations: By working with a CDLP, you’ll gain a clear understanding of what you can realistically afford in terms of homeownership post-divorce.
5. Negotiation Support: If you’re working towards a settlement that involves real estate, a CDLP can provide valuable insights to support your legal team during negotiations.
How to Plan for Homeownership During Divorce
1. Hire a CDLP Early: The sooner you involve a CDLP in your divorce process, the better prepared you’ll be to make informed decisions about not only real estate and future homeownership, but how to structure your financial settlement between both parties effectively.
2. Gather Financial Documents: Collect all relevant financial information, including property deeds, mortgage statements, and tax returns.
3. Set Clear Goals: Communicate your homeownership aspirations to your CDLP so they can tailor their advice to your specific needs.
4. Explore All Options: Work with your CDLP to consider various scenarios, such as keeping the marital home, selling and dividing proceeds, or planning for a future home purchase.
5. Coordinate with Your Legal Team: Ensure your CDLP and divorce attorney are working together to align your financial strategy with your legal approach.
It’s worth repeating: the path to a divorce in Denver is not always a straight line. It’s a journey unique to each individual. And while the emotional landscape may shift and change, having clear financial direction can provide the stability you need to move forward. By working with a Certified Divorce Lending Professional, you can gain clarity on your financial situation, make informed decisions about your current and future real estate holdings, and set yourself up for success. Let us help you keep your home while going through your divorce.
*** If you are interested in learning more about working with a Certified Divorce Lending Professional, please join me and Karla Kyte for Leave Your Spouse, Keep The House? On Febuary 21 at 11am – this is a FREE 45-minute webinar exploring key homeownership options during divorce. Feel free to bring your questions and you can sign up anonymously HERE.
