She said it is not uncommon for divorcing former customers to bring her in as part of their divorce team to ensure that whatever agreement is reached on the house makes sense for all parties.
“There’s a lot of nuance to mortgage guidelines, and the guidelines are different when a divorce is present,” she said. “So, 70% of divorces involve real estate. It’s really, in most cases, the biggest or second-biggest asset that you own. Your retirement could be more than the equity in your house, but it’s right up there.
“So when you’re talking about a divorce, and we’re dividing assets, it’s not black and white. We’re splitting assets, but not all assets are equal. There are tax implications for different asset classes. The equity in your house is different than your retirement account. How they get split matters, as does how the final divorce agreement is written up. What’s a legal option isn’t always a lending option.”
Helping during an emotional time
One of the hardest things Coleman has to deal with is when former customers come to her after a divorce, only to find that the financing for keeping their home doesn’t work out.
“I’ve had clients come to me post-divorce,” she said. “They say, ‘I was awarded the house in the divorce, and I have 90 days to refinance my mortgage, to remove my spouse.’ We put the numbers together for them, and they don’t qualify. Most settlement agreements include language saying you have 90 days to refinance, that you owe X to the departing spouse, and that if it doesn’t happen within 90 days, you have to list the house for sale, and then the proceeds are split this way.”
