THE UNIQUE CHALLENGES OF DIVORCE AND
HOMEOWNERSHIP
For divorcing homeowners, the decision surrounding the marital home involves more than just finances. It’s
about ensuring stability for children, preserving a sense of normalcy, or even achieving a clean break to start
anew. However, these emotional considerations must align with financial realities, legal agreements, and
future goals. The intersection of these factors can create a maze that’s difficult to navigate without
specialized guidance.
One of the most significant challenges is understanding how divorce impacts mortgage financing. Questions
often arise, such as:
How will alimony or child support payments affect mortgage qualification?
What are the implications of dividing property equity?
Can one spouse afford to refinance the home to remove the other’s name from the mortgage?
How can a new home purchase be structured to fit within post-divorce financial constraints?
These questions require a strategic approach that expands beyond traditional mortgage parameters,
considering mortgage guidelines, divorce settlements, and long-term financial planning.
Here’s why working with a CDLP® is critical for divorcing homeowners:
1. Strategic Mortgage Planning
CDLPs excel at analyzing how divorce agreements affect mortgage qualifications. For instance, they
understand how to structure alimony and child support payments to meet underwriting guidelines. This is
particularly important for individuals relying on these payments as income to qualify for a mortgage.
08 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
“The marital home isn’t just bricks and mortar; it’s the
foundation of memories, stability, and a sense of
identity.” This sentiment rings true for many divorcing
homeowners as they face one of the most emotionally
charged aspects of their separation—deciding what
happens to the family home. Whether the goal is to retain
the marital home or purchase a new property post-
divorce, the process is riddled with complexities that
extend beyond traditional real estate transactions. This is
where a Certified Divorce Lending Professional
(CDLP®) becomes an invaluable ally.