realistic property and financial information. These experts can also help explore creative solutions for
property division and mortgage financing, increasing the chances of reaching a mutually agreeable outcome.
Scenario: Sarah and Mark's Divorce
Sarah and Mark are divorcing after ten years of marriage. They own a marital home with a remaining
mortgage balance of $250,000 and an estimated market value of $400,000. Sarah wants to keep the house for
the sake of their two children, but she is unsure about her ability to afford the mortgage payments on her
sole income. Mark, on the other hand, wants to sell the house and divide the proceeds equally.
Evaluative Mediation Process:
Mediator and Professional Introduction: The parties, their attorneys, the mediator, and the Real Estate
Mediation Specialist (REM-S™) meet for an initial session. The mediator explains the evaluative
mediation process and highlights the role of the financial or real estate expert.
1.
Information Gathering: The REM-S™ gathers relevant property and financial documents from both
parties, including income statements, tax returns, bank statements, property and mortgage details. They
also obtain an appraisal or Comparative Market Analysis (CMA) of the marital home or other real
property.
2.
Financial and Market Analysis: The expert analyzes the financial information and prepares a detailed
report on the marital home, which may include:
3.
Sarah's current income, expenses, and ability to qualify for a new mortgage in her name alone.
The potential net proceeds from selling the house after accounting for the mortgage payoff, realtor
fees, and closing costs.
Potential tax implications for both parties under different scenarios.
Mediator's Evaluation: The mediator reviews the expert's report and provides an evaluation based on
relevant case law and statutes. They discuss the potential outcomes of different scenarios, considering
factors such as child custody arrangements, spousal support, and equitable distribution of assets.
4.
Joint Session Discussion: The mediator and REM-S™ present their findings and evaluations to both
parties in a joint session. They discuss the pros and cons of each option:
5.
Sarah keeping the house: The REM-S™ explains the financial requirements for Sarah to refinance
the mortgage and outlines potential challenges she may face. The mediator discusses potential
spousal support arrangements to ensure fairness.
Selling the house: The REM-S™ details the estimated net proceeds from the sale and how they
would be divided. The mediator discusses the potential impacts on child custody arrangements if
Sarah needs to relocate.
Other options: The mediator and the REM-S™ may also explore creative options such as a delayed
sale or renting out the property.
Negotiation and Agreement: Based on the information and evaluations provided, the parties engage in
negotiation facilitated by the mediator. The divorce mortgage planner or divorce real estate professional
can answer questions, provide additional financial analysis, and help the parties understand the financial
6.
EVALUATIVE MEDIATION SCENARIO
10 DIVORCE REAL ESTATE & MORTGAGE JOURNAL