How to Refinance Your Home as Part of Your Divorce Financial Settlement

There are many factors to consider when putting together a financial settlement agreement, but one of the things that’s come up recently among my clients has been refinancing your house as part of your divorce financial settlement. (Enough so that I did a Facebook Live on the topic.)

There are two main things to consider when agreeing to anything, but especially when agreeing to a financial settlement that has pretty serious consequences if you’re no longer able to uphold your end of the deal. 

Consideration 1: Is it Feasible?

First thing’s first… You have to make sure it’s actually realistic and that you A) can refinance on your own and B) are able to do so within the terms of the agreement.

Some of the language I’m seeing lately has been around the time limit for refinancing. In some cases, there are some pretty serious consequences if you aren’t able to — in some cases, I’m seeing as little as 30 days for refinancing....

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How to Keep Your Divorce from Destroying Your Credit

Divorce can significantly impact your life in many ways.  One often overlooked area that divorce can affect is your credit score.  Credit bureaus do not report marital status and divorce itself doesn’t necessarily mean your score will drop.  Usually, your credit score is affected indirectly due to divorce. To keep your score from taking a dive, it’s essential to consult with your Certified Divorce Financial Analyst to help you navigate your finances before, during, and after your divorce is final.

Keep Your Divorce from Destroying Your Credit

Maintaining a good credit score isn’t just important when looking to borrow money.  Landlords, utility companies, and current or future employers can use your FICO (Fair Isaac Corporation) credit score to determine if they want to do business with you.  The amount of debt you carry will identify to lenders whether or not you are a low or high-risk borrower and change your score. Your FICO score...

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Divorce and Your Mortgage

 

 

An interview with Amy Terrell, Senior Loan Officer & Certified Divorce Lending Specialist with US Lending Corp.

 

I find it essential to develop a reliable network of professionals who can support my divorcing clients. There are such a wide variety of issues that arise during the course of a divorce. One that frequently occurs is refinancing the primary residence to remove one parties' name from the loan. I recently sat down with Amy Terrell, a Senior Loan Officer and Certified Divorce Lending Specialist with US Lending Corp. During our conversation, I realized there are some important issues that I wanted to make sure people are aware of when it comes to divorce and your mortgage. She was kind enough to complete a brief interview over email to share the information.

 

What are some of the biggest mistakes people make when it comes to their credit score when they are trying to refinance? 

Some of the biggest mistakes people make are:

  • Opening new...
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Debt and Divorce: Understand Your Liability for Shared Debt

Are you faced with debt and divorce?

Divorce can be scary but when you're faced with debt and divorce, it becomes even more complicated. Know that you are not alone. Many couples find themselves knee deep in debt and have no idea what to do with it in their divorce.  The best option for shared debt in a divorce is to pay it completely off. Unfortunately, for many, this is not an option.  So what are the risks and what should you do?

Important actions to consider when dealing with debt and divorce:

Run a credit report.

This is a crucial step in determining just how much debt you have and can also help determine if there is any debt you weren’t aware of. We don’t like to think the worst, but it’s an unfortunate truth that hidden debt can be a common and unwanted surprise.

Use marital assets to eliminate debt.

Once you determine the amount of shared debt see if you can pay any of it off using marital assets before the divorce is final. This may not be...

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