Mediating The Settlement To Qualify For The Loan
As difficult as the divorce process can be there are many subtle financial hurdles that can prove problematic even for an amicable agreement.
What happens after the settlement is reached may not lead to the desired end of the agreement if the planning did not include qualifying for a loan.
I read a story by Michele Martin, a N.Y. Mediator, about a wife’s dilemma in not qualifying for a loan to refinance the husband off the current mortgage. Since they had agreed she should keep the house, particularly for the children, they re-worked the agreement.
“Since it was in both parties interest that the wife would be able to keep the house they agreed to increase the amount of and extend the length of spousal support and pay off a car loan in wife’s name in exchange for the wife receiving a smaller split of the assets. he ultimate “numbers” remained the same but it allowed the couple to achieve their goal. Additionally, the new deal happened to be more tax advantageous for the husband (while being tax neutral to the wife).”
This is a great example of what mediation can accomplish to the point of making sure that people get what they need the way that it does the most good for everyone.