Divorce can be scary, complicated, and draining. A huge roadblock that deters many from going through with divorce are the financial ties that run synonymously with it. If you and your spouse bought a house together, for example, and your name is on the loan, you will have a difficult time getting approved for another loan unless you remove your name from the title and clear up your credit report.
Enter: Mediation
Divorce mediation is a process in which you and your spouse work together with a neutral third party – a mediator – to navigate through your concerns and complete all required legal paperwork involved in a divorce. Your mediator assists in getting your assets evaluated before discussing the division of your assets and debts.
What we do:
We take on mortgage refinances in divorce cases as long as they are centered around mediation. Why? Mediation is low conflict, low intensity, and the best way to derive a positive outcome during a turbulent time. Courts in California recognize mediation as an outlet as it frees up the courts.
The fact is, mediations are much quicker and easier; couples are much happier to spend $4-5k and sign Marriage Settlement Agreement documents in two months vs. litigating and spending tens of thousands of dollars in legal fees and dragging out the process.
How we handle mediation and the mortgage loan process:
If there is a mortgage associated with a property, we offer cash-out refinances as a way for one spouse to retain and refinance out the departing spouse by using the proceeds from the refinance to equalize the equity. In other words, a cash-out refinance can be used to take equity out of the home, and use that equity to pay off the spouse. Rather than things like child support and alimony upfront, it rolls into the monthly mortgage payment. We can also assist with the new deed preparation that will be needed removing one spouse from the title to the property.
In addition, the refinance will take the name off the title and loan. The reason this is important is if their name is anchored in a loan, it is connected to their credit which makes it difficult to get a new house, car, etc.
If you are thinking about a divorce and want to make sure the separation process runs as smoothly as possible, give us a call at (760) 930-0569. We can assist in answering any questions you may have and can help in recommending a mediator based on your needs.
