Divorce is not just the end of a
marriage; it’s the beginning of a new
chapter that requires clarity,
compassion, and collaboration to
navigate successfully.
DIVORCE
ISSUE 23, NOVEMBER 2024
REAL ESTATE & MORTGAGE JOURNAL
WWW.DIVORCELENDINGASSOCIATION.COM
BRIDGING THE GAP WITH
COLLABORATION
Collaborating for Smarter, Stronger
Divorce Solutions
THE RISKS OF UNTRAINED
INFLUENCERS
The Hidden Risk to Successful Divorce
Resolutions
WHY NON-QUID PRO QUO
REFERRALS ARE ESSENTIAL
Putting Clients First with Expertise-Driven
Connections
04
05
BRIDGING THE GAP
WITH COLLABORATION
15
WHY NON-QUID PRO QUO
REFERRALS ARE ESSENTIAL
12
TAX IMPLICATIONS IN DIVORCE WITH
RENTAL PROPERTIES
TABLE OF
PRESIDENT’S LETTER
THE RISKS OF
UNTRAINED
INFLUENCERS
08
CONTENTS
PROFESSIONAL SPOT LIGHT WITH
JASON GORDON, CDLP® AND
RHONDA NORDYCK, CDFA®
16
The Value of Working with a Certified Divorce Lending
Professional (CDLP®)
A CDLP® brings the financial knowledge and expertise of a solid
understanding of the connection between Divorce, Family Law,
Financial and Tax Planning, and mortgage planning strategies
related to real property and divorce.
A CDLP® is trained to recognize potential legal and tax
implications of mortgage planning in divorce situations.
A CDLP® is skilled in specific mortgage guidelines as they pertain
to divorcing homeowners.
A CDLP® can identify concerns with support structures that may
conflict with mortgage planning opportunities.
A CDLP® works directly with the professional divorce team to help
implement a strategic divorce settlement agreement, ensuring the
best opportunities to secure mortgage financing after the decree.
A CDLP® can recommend financing strategies that help
divorcing clients identify mortgage planning opportunities for
maintaining the current marital home while helping to ensure the
ability to achieve future financing for the vacating spouse.
A CDLP® does not give legal or tax advice.
Divorce Real Estate &
Mortgage Journal
Published by:
www.DivorceLendingAssociation.com
This 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.
Copyright by
Divorce Lending Association, LLC
All rights reserved. No part of this
publication may be reproduced or
transmitted in any form or by any means,
electronic or mechanical, including
photocopying, recording, or by any
information storage or retrieval system
without the written permission from the
copyright holder.
The DLA is a national organization dedicated to bridging the gap
between the legal, financial, and emotional aspects of divorce and
the real estate and mortgage process, ensuring that divorcing
individuals have the knowledge, resources, and support they need to
secure their financial well-being and make confident decisions about
their housing needs.
What is the Divorce
Lending Association?
03 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
LETTER
PRESIDENT’S
Dear Colleagues,
In the field of divorce, our work is marked by complexity and the profound responsibility to guide
clients through one of life’s most challenging transitions. Each client’s unique situation requires a
blend of expertise, compassion, and innovative problem-solving. Collaboration among divorce
professionals is essential to effectively meeting these demands and fostering trust and efficiency in
our work.
When we align our distinct skill sets—whether as mediators, attorneys, financial planners, or
Certified Divorce Lending Professionals (CDLP®)—we create a collective knowledge base that
benefits our clients. True collaboration requires an intentional commitment to prioritizing the
client’s best interests, making referrals based on expertise rather than reciprocity, and remaining
open to strategies that yield the best outcomes. This approach ensures that every professional’s
contribution serves a greater purpose within the team.
Referrals rooted in specialized expertise strengthen trust and credibility. For instance, referring a
client to a CDLP® for guidance on structuring an equity buyout ensures they receive tailored advice
aligned with their financial goals. These client-centered decisions foster better outcomes and
reinforce professional relationships, illustrating the power of collaboration. Such trust empowers
professionals to expand their practices while improving the client experience.
I encourage you to seek opportunities to connect with professionals outside your immediate area of
expertise, participate in interdisciplinary events, and educate one another about your unique
contributions. By doing so, we create a community committed to excellence and dedicated to
supporting clients as they navigate their divorce journeys with confidence and clarity. Together, we
can redefine what it means to work collaboratively, ensuring our clients receive the comprehensive
support they deserve.
PRESIDENT & FOUNDER
04 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
The role of a divorce-trained CDLP® extends far beyond traditional mortgage services. CDLP®s are
uniquely equipped to collaborate with other divorce professionals, bridging gaps in understanding and
strategy to achieve better client outcomes. Let’s explore how this collaboration works, its benefits, and
how it transforms the divorce process into a smoother and more effective experience for everyone
involved.
The Unique Challenges of Divorce Settlements Involving Real Estate and Mortgages
Divorce settlements involving real estate and mortgage planning present unique challenges that require
a multidisciplinary approach. These include:
Complex Financial Decisions: Determining the best course of action for the marital home—
whether to sell, refinance, or execute an equity buyout—requires careful consideration of financial,
legal, and tax implications.
1.
Emotional Impact: Clients navigating divorce often struggle to make rational decisions about their
home due to emotional attachment and stress.
2.
Legal Nuances: The division of property, title issues, and ownership rights can create legal
complexities that must be addressed with precision.
3.
Underwriting Guidelines: Mortgage financing during divorce involves specific underwriting
challenges, particularly when support income or credit concerns are involved.
4.
BRIDGING THE GAP WITH
COLLABORATION
Divorce is one of life’s most challenging transitions, often bringing with it a complex tangle of financial and
emotional issues. For many divorcing couples, the marital home represents their most valuable asset,
making real estate and mortgage decisions a critical part of the settlement process. This complexity requires
a team approach, where mediators, attorneys, financial planners, and Certified Divorce Lending
Professionals (CDLP®) work together to provide comprehensive solutions.
HOW MEDIATORS, ATTORNEYS, AND FINANCIAL PLANNERS COLLABORATE
WITH DIVORCE-TRAINED CDLP®S
Written by Jody Bruns, President Divorce Lending Association
05 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
These complexities demand a team approach, where mediators, attorneys,
and financial planners collaborate with CDLP®s to create cohesive
strategies.
The Role of a CDLP® in Collaboration
Certified Divorce Lending Professionals bring specialized expertise to the
divorce team, bridging financial and legal considerations in real estate and
mortgage decisions. Here’s how CDLP®s collaborate effectively:
Providing Financial Clarity: CDLP®s work with financial planners to
analyze cash flow, support income, and debt obligations. They help
ensure financing decisions align with long-term financial goals while
meeting mortgage underwriting guidelines.
Offering Legal Support: Attorneys benefit from a CDLP®’s
understanding of property division and title issues. CDLP®s provide
detailed reports and pre-approval strategies to facilitate equitable
settlements that align with legal agreements.
Supporting Mediation Efforts: In mediation, CDLP®s act as neutral
advisors, offering creative solutions for dividing property and
structuring financing. Their expertise helps mediators guide clients
toward practical, informed decisions.
06 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
Collaboration
transforms
challenges into
opportunities,
creating pathways
to clarity,
stability, and
better outcomes
for divorcing
clients.
Streamlining Communication: CDLP®s are a liaison between the divorce team, ensuring all
professionals are aligned and clients receive consistent, accurate advice. This coordination minimizes
delays and reduces stress for clients.
Real-Life Success Stories
Case Study 1: Addressing Support Income Challenges
A divorcing client needed to refinance the marital home but was relying on spousal support to qualify. The
CDLP® collaborated with the attorney and financial planner to:
Reclassify support income to meet underwriting requirements.
Create a timeline for finalizing the support agreement to align with the financing process.
Provide pre-approval strategies to ensure the client could retain the home.
The collaboration resulted in a seamless refinancing process and a settlement that satisfied both parties.
Case Study 2: Facilitating a Collaborative Sale
In another case, a divorcing couple agreed to sell their marital home and divide the proceeds. The
mediator, attorney, and CDLP® worked together to:
Establish a fair market value with input from the real estate agent.
Structure the sale timeline to accommodate both parties’ financial needs.
Prequalify each party for future home purchases based on anticipated proceeds.
The team’s collaboration ensured the sale was completed efficiently and both clients were prepared for
their next steps.
The Benefits of Collaboration
Collaboration between CDLP®s and other divorce professionals offers several key advantages:
Holistic Solutions: By combining their expertise, the divorce team can address the full range of client
needs, from financial stability to legal compliance and emotional well-being.
Reduced Client Stress: A coordinated approach minimizes confusion and provides clients with clear,
actionable guidance, reducing the stress of navigating complex decisions.
Better Outcomes: Collaboration leads to more equitable settlements, improved financial stability, and
a smoother transition for divorcing clients.
Professional Growth: Working with a CDLP® enhances the value mediators, attorneys, and financial
planners bring to their clients, strengthening their reputation and expanding their practice
opportunities.
Moving Forward: Bridging the Gap for Better Outcomes
The future of divorce settlements lies in collaboration. By bridging the gap between mediators, attorneys,
financial planners, and CDLP®s, professionals can provide divorcing clients with the comprehensive
support they need to successfully navigate this challenging time.
Investing in collaboration and specialized training ensures that divorce professionals are equipped to meet
their clients' evolving demands, transforming the divorce process into an opportunity for clarity, stability,
and hope.
07 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
WHY BECOME
AN ALLIED
PROFESSIONAL?
Together, we can make
a difference. Join the
DLA today and become
part of the solutions
for divorcing
individuals facing
complex financial
decisions surrounding
real property and
mortgage planning.
Amy Valdivia
Director of
Allied Professionals
Education.
Resources.
Community.
Divorce is not just the end of a marriage; it’s the beginning of a new chapter that
requires clarity, compassion, and collaboration to navigate successfully.
Understanding the risks posed by untrained professionals highlights the importance of working with divorce-
trained experts, such as Certified Divorce Lending Professionals (CDLP®) and Real Estate Mediation
Specialists (REM-S). Let’s examine these risks in detail and explore how specialized training ensures a
smoother, more productive divorce process.
How Untrained Influencers Derail Mediation
Mediation is a cornerstone of amicable divorce settlements, offering divorcing couples a structured
environment to negotiate agreements. However, the presence of untrained professionals can disrupt the
process in several ways:
Misinformation and Misguidance: Untrained influencers may lack a nuanced understanding of divorce-
specific issues, such as equitable property division, tax implications, and mortgage financing
requirements. This lack of expertise can result in:
Incorrect advice: This can lead to unrealistic expectations or decisions that do not align with legal
and financial realities.
Confusion: Misinterpreting complex issues can confuse clients and derail productive discussions.
Unrealistic Solutions: Without a deep understanding of divorce dynamics, untrained professionals may
propose solutions that are:
Unfeasible: Suggestions that don’t align with legal guidelines or financial feasibility can stall
negotiations.
Biased: Unintentionally favors one party over the other, leading to conflict rather than resolution.
THE RISKS OF UNTRAINED INFLUENCERS IN
DIVORCE MEDIATION AND SETTLEMENT
PROCESSES
08 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
Divorce is a complex and often emotionally charged process
that requires careful navigation by skilled professionals.
While the inclusion of multiple professionals, such as
mediators, attorneys, and financial planners, is essential for
achieving equitable settlements, the involvement of untrained
or inexperienced influencers can undermine the process.
These outside influencers, who lack specialized divorce
training, may inadvertently derail mediation efforts,
complicate settlements, and leave divorcing clients in a worse
position.
Overcomplication of Processes: Untrained professionals may overcomplicate already challenging
scenarios by introducing unnecessary steps or misunderstandings. For instance, they might fail to
recognize the importance of timing in support agreements or the implications of title transfers in
property settlements.
Lack of Neutrality: One of the most critical aspects of mediation is neutrality. An untrained professional
may inadvertently inject personal biases, undermining the mediator’s efforts to maintain balance and
fairness.
Risks to the Settlement Process
When untrained influencers become involved in the settlement process, the potential for harm extends
beyond mediation. Their lack of expertise can result in long-term consequences for divorcing clients,
including:
Financial Instability: Uninformed decisions about real estate, mortgages, or support agreements can
create financial instability. Examples include:
Miscalculated support income, leading to mortgage denial.
Poorly structured equity buyouts, leaving one party overburdened with debt.
Legal Challenges: Incorrectly handled settlements can lead to legal disputes, requiring costly revisions or
litigation. For instance:
Improper division of assets due to misunderstood property valuations.
Overlooking legal requirements for title transfers or support agreements.
Emotional Distress: When settlements fail to meet expectations or result in unforeseen complications,
clients experience heightened emotional stress. The aftermath of such issues often prolongs the recovery
process for all parties involved.
RISKS TO THE SETTLEMENT PROCESS
09 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
Untrained influencers can derail the divorce process with misinformation and
unrealistic advice. Partnering with divorce-trained experts ensures clarity,
balance, and better outcomes for clients navigating one of life’s toughest
transitions.
Real-Life Example: The Danger of Untrained Input
Consider a case where a divorcing homeowner was advised by an inexperienced mortgage professional to sell
the marital home immediately to divide the equity. While this appeared to be a straightforward solution, it
failed to account for the homeowner's desire to keep the property for stability during their children's
transition. When a CDLP® was brought in, they devised a plan to structure an equity buy-out, allowing one
spouse to retain the home while ensuring the other received their share of the equity. The initial advice led to
unnecessary emotional turmoil and potential financial loss, which could have been avoided with trained
guidance from the start.
How to Prevent Untrained Influence
To safeguard the integrity of the mediation and settlement process, divorce professionals should take
proactive steps:
Vet Professionals Carefully: Ensure that all professionals involved in the divorce process have relevant
training and credentials. Look for designations like CDLP®, REM-S, CDRE, CDFA, or certifications
in family law and financial planning.
Educate Clients: Inform clients about the importance of working with trained professionals. Emphasize
the risks of relying on well-meaning but unqualified individuals for critical advice.
Foster Collaborative Networks: Build relationships with other trained professionals who share a
commitment to excellence in divorce cases. This ensures that clients have access to a trusted team of
experts.
Moving Forward: Prioritizing Expertise
Divorce is a pivotal moment in a client’s life, and the professionals guiding them play a significant role in
shaping their future. By prioritizing expertise and minimizing the influence of untrained professionals,
mediators, attorneys, and financial planners can ensure more equitable, stable, and peaceful outcomes.
The risks of outside influencers underscore the value of specialized training and collaborative approaches. By
working with divorce-trained experts, professionals can transform a challenging process into an opportunity
for clarity, stability, and hope for their clients.
THE IMPORTANCE OF PRIORITIZING EXPERTISE
10 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
Prioritizing expertise ensures every decision is rooted
in knowledge, paving the way for trust, clarity, and
success.