Divorce Settlement and Home Ownership Decisions

Hi, welcome to The Divorce Allies Podcast, a podcast and video series where we dive into all things divorce, the process of creating a settlement offer with a team of financial professionals, including divorce, mortgage, parenting, and relationship coaches. We cover all the areas of the divorce settlement process from financial to emotional wellbeing. I'm Melissa Gragg, our financial mediator and business valuator, and I'm with Emile Flowers, our divorce mortgage planning specialist.

Today, we're discussing how to prepare for divorce, particularly focusing on decisions about home ownership. We've often talked about this in our discussions, and it's clear that when deciding whether to keep the house during litigation, mediation, or personal deliberation, there are generally three options: one spouse keeps the house, the other keeps the house, or you sell the house. Are there any other options we should consider?

Questions address in the episode:
What are the key factors to consider when deciding whether to keep or sell the house during a divorce?

How does the stage of divorce affect mortgage planning?

Can you explain the role of income and support payments in qualifying for a mortgage post-divorce?

How do credit scores and other financial liabilities impact one's ability to secure a favorable mortgage?

How should the house be addressed in the settlement agreement to ensure a smooth mortgage process during or after a divorce?

Key Podcast Takeaways:
Understanding Housing Options in Divorce: It's crucial to understand the available options regarding home ownership during a divorce—whether one spouse keeps the house, the other does, or it's sold. This decision is central to negotiating settlements.

Evaluating Financial Feasibility: The podcast emphasizes the importance of thoroughly evaluating whether one can afford to keep the house post-divorce, considering mortgage obligations, refinancing options, and personal financial capacity.

Impact of Credit and Income on Mortgage Qualification: The discussion highlights how your credit score, income stability, and debt-to-income ratio influence your ability to qualify for a mortgage post-divorce, which is vital for anyone looking to retain their home.

Legal and Mortgage Planning: Proper planning and understanding of the legal and mortgage processes involved in divorce are underscored, especially how support payments and property ownership affect mortgage planning and refinancing.

Strategic Negotiation and Planning: The podcast stresses the importance of strategic negotiation and thorough preparation in the divorce process, particularly how financial planning and understanding mortgage implications can empower individuals in making informed decisions.

Melissa Gragg, CVA, MAFF
Expert testimony for financial and valuation issues  
Bridge Valuation Partners, LLC  
melissa@bridgevaluation.com  
http://www.BridgeValuation.com  
http://www.ValuationPodcast.com  
http://www.MediatorPodcast.com  
https://www.valuationmediation.com  
https://www.thedivorceallies.com/
Cell: (314) 541-8163

Emile Flowers, CDLP®
Divorce Mortgage Consultant
https://www.divorcemortgageplanningservices.com/
https://www.thedivorceallies.com/