Your Home is Likely Your Largest Financial Asset ... Getting a Mortgage During or After a Divorce Doesn’t Have to be Hard When You Work With Us!
If you are like most couples, your principal residence is very likely your highest value asset with the single largest amount of financial resources being tied up in the equity in that matrimonial home. However, if you have children (which are arguably the most important asset of any marriage) then the home could be the best place to keep stability for children who may very well be adjusting to the new realities of parents who no longer want to stay together.
Mortgages during divorce or mortgages after divorce have some unique traits that lenders need to fully understand, but when you have a team of mortgage professionals who specifically understand divorce and money and how lenders treat mortgage financing during and after a divorce it can be much easier to navigate your options than you may think. Every member of our team in a client advisory role is a CDFA (Certified Divorce Financial Analyst) and is well versed in the rules for lending that apply in the case of separation and divorce.
When you commence a separation and begin to file for a divorce, your assets (including your properties and savings fewer liabilities) will need to be divided according to your net family property. Dividing things fairly without expensive legal bills and the hassles of ongoing conflict is by far the best route wherever possible. Having reviewed more than five hundred separation agreements for our clients and reading more than two hundred agreements in the conclusion of his own marriage in 2010, Calum can attest firsthand that being combative and fighting over money is very likely the very worst use of your time and resources in more than 95% of cases. A mortgage during a divorce can be easy even if you are not yet divorced so long as the mortgage professional asks the right questions and gathers the right documents.
As if divorces aren’t already draining, difficult, or complicated enough, breaking up the mortgage and having to work with lenders who don’t understand the complexities around the division of net family property or spousal and child support adds more strain when you are trying to get your own affairs back in order and re-discover your new life. It’s not your responsibility to educate your financial advisors and mortgage lender on how the math and lending rules work during a divorce. In a world where statistics show more than 50% of marriages end in divorce – your situation is sadly not a new one and your financial professionals should have a very thorough understanding of the way things work.
Not only do you have legal considerations and additional bills, but you may also have important real estate matters to take care of. It’s not enough to sit at a table with your soon-to-be ex-spouse and a lawyer or two and decide what happens to the house. As far as the lender is concerned, you have two options: sell the home or refinance the home. In either case, you’ll need a financial professional with expertise in the area of family law who can help clarify and assist.
And how do you handle situations where one of the ex-partners wants to keep the house? What if that partner is unable to buy out the other? What if both want to keep the house? What if you want to buy a new home for yourself but your name is still listed on the old mortgage? All of these are common issues for people seeking mortgages during divorce – and all with relatively simple solutions for someone who understands the fields of both mortgages and divorce.
Break Up The Mortgage (and Marriage) Peacefully!
What you need, in addition to a lawyer, is someone who can answer the questions above and others – someone who knows the ins and outs of real estate and mortgage matters during a divorce. You need someone on your personal advisory team who understands how assets are divided, how spousal and child support are determined, and how to position this with lenders to get you the best possible outcome. In addition to the CDFA credentials held by our team, in the last ten years, Calum has acted as an expert witness in over 15 family law cases and his opinion has never been defeated in litigation. Not only do we have the education and experience in helping people during this often difficult time… but Calum is himself a ‘marriage alumnus’ having concluded his own marriage in 2010 and understanding this topic from first-hand experience.
Get In Touch With Us To Make This Difficult Period Easier
When you call us, we’ll be able to advise you on how to make this often challenging period easier for both of you. The divorce process is already very stressful and our expertise can save you considerable time and large amounts of money (as well as a few grey hairs). As someone who has personally lived through a divorce – Calum can assure you that anyone who decides to start a battle with their soon-to-be ex-spouse has already lost. Financial fights after divorce only determine who will lose more… there are very rarely any true winners (perhaps with the exception of legal professionals handling matters). We’ll help you explore your options given your situation. Contact TMMMG and we’ll help you take care of the mortgage considerations once you’ve made a decision on your best course of action for your home.