Posts Tagged ‘enjoy again’
Divorce Is Tough. The Mortgage Doesn’t Have To Be.
By Mark Watson, Loan Officer, Guardian Mortgage Company, Inc.
www.guardianmortgageonline.com
This is a terrific article. It’s jam-packed with information that I am so happy to be able to share! I’ve added just a few comments in square brackets [].
If you are going through a divorce, you are probably exhausted by all the details and decisions that have to be made as the two of you separate. Even in the most amicable situations it can be very emotional. [Remember there are the 5 facets of divorce – social, emotional, legal, financial and functional – that all overlap. So it makes sense that in the midst of making the decisions required to divorce that you would experience a lot of emotions.]
There is usually a lot of discussion about the house as it usually represents the family’s largest asset. [Dealing with an asset would be an example of the financial facet of divorce. When dealing with the financial facet of divorce it’s best to remain primarily in a business mindset instead of an emotional one because you’ll be better able to make decisions you can live with for the long haul.]
While divorce is a tough process, resolving the mortgage doesn’t have to be. According to Mark Watson, Vice President of Guardian Mortgage Company in Plano, Texas, there are three things homeowners can do to make it easier on themselves:
- Make realistic decisions.
- Understand your loan options.
- Seek help.
Make Realistic Decisions.
In many divorces, the home is refinanced in the name of one of the spouses and any profit or losses are negotiated between the couple. Sometimes the home is sold, and sometimes there is a long-term agreement in place about the home. Occasionally, a house with no mortgage is given to one spouse as part of the divorce settlement.
“It makes no difference to the mortgage company whether or not the name changes on the mortgage,” notes Watson. “However, the spouse no longer living in the home usually does not want to be responsible for it. Plus, they may want some cash out of it.”
If your house is paid off, a quit claim deed can be an easy solution to home ownership in a divorce settlement and make your life after divorce easier.
If there is no mortgage on the home, and one spouse plans to keep it as part of the settlement, the process is simple. “The attorney prepares a quit-claim deed and records it as part of the divorce,” says Watson. “The home belongs to just one spouse from that point forward.”
Most homes have a mortgage, though. There are a number of questions that must be answered in order to pick the right process for your situation, but the most important is “which spouse can afford to keep the home after the divorce?” It is often the most difficult as there is often a lot of emotional attachment towards the house that may not have anything to do with the financial realities of the situation. [The best way to answer these questions is from a business-minded perspective. The “businesses” to be considered are the financial business of each spouse post-divorce as well as the business of raising happy, healthy children. In other words, you need to keep in mind what your life after divorce will really be like if you choose to keep the house.]
The spouse with primary custody of the children will often want to keep the home to provide a stable environment and to stay near school and friends.
“I often see couples where the wife isn’t working and hasn’t worked in years,” says Bruce Rayburn of The Rayburn Group of Ebby Halliday Realtors based in Plano, Texas. “This makes it very hard to qualify for a refinance. Even if both spouses were working at the time of the divorce, it doesn’t mean either spouse can afford the mortgage with only one salary.”
“Even getting child support is often not enough,” Rayburn adds.
Besides the amount of income required to qualify for a refinance, the source of the income makes a difference. “For conforming loans ($417,000 or less in most areas of Texas), alimony and child support cannot count towards qualifying income until there have been at least three months of steady payments. In addition, the paying spouse must be required by law to pay for at least three years after the closing date of the sale,” notes Watson.
“For FHA Loans, the requirement is six months of payment. Furthermore, if the amount of alimony or child support is greater than 30% of the borrower’s income, then a full year’s worth of reliable payments is required.”
[Regardless of where you live you need to know a lot about what the legalities and implications of keeping the house are as you make decisions that will impact your post-divorce lifestyle and residence.]
Understand Your Loan Options.
Many couples believe that they have to sell or refinance the home in order to finalize the divorce, which is not always the case. Sometimes sale or refinance of the home is delayed for months to years.
According to attorney Penny Phillips of Plano, Texas, many families with children want to keep the family home for them until they are older and/or in college. “In this case, one spouse will sometimes agree to wait to get the equity out of the house until after the children have left,” says Phillips.
In Texas, a lien can be placed on the house – called an Owelty Lien Agreement – such that one spouse will own the house, but the other will still retain rights to equity that was present in the house at the time of the divorce. This gives the first spouse the right to make improvements and to own the home, but the second spouse will get his or her share of the equity later when the kids are grown or the market improves or whatever reason the couple has chosen to wait.
“It is a win-win because the owner-spouse gets the benefit of all improvements and equity growth in the meantime, but the other spouse still gets the benefit of all the years of contributing to the equity when they were married,” adds Phillips.
“Since the home is not sold or refinanced, there is no need for the remaining spouse to get qualified for a new mortgage until the cash-out time. They just need to keep making timely payments. This is a good solution for situations where the divorce is fairly amicable and the spouses can work together for this common goal. I always advise that they tell the mortgage company about the divorce, however, as both partners need to continue to get notices about the loan,” says Phillips.
[Keep in mind that just because a divorce starts out amicably doesn’t mean it will stay that way. So making sure that both spouses continue to get notices about the loan is a smart decision. After all, keeping life after divorce amicable between exes requires regular, respectful communication, but tempers can still flare despite the best efforts.]
“We generally see Owelty Liens when a couple is in the process of refinancing the home,” notes Watson. “You don’t need to wait a specific amount of time to use it, and it has the added benefit of letting you do a “special purpose” refinance and go up to 95% of the appraised value of the home. This provides more equity at the end of the process.
“Current “cash-out” guidelines for refinancing in Texas allow for financing up to 80% of the loan value. A special purpose refinance allows you to get an extra 15% out of the home, which is then shared between the couple as per the terms of their divorce. I always talk to my clients about Owelty Liens because it can make a big difference if one partner is trying to buy another home, for example. Also, if the other partner finds out after the fact that they could have gotten more cash out of the refinance and didn’t, it can cause more unhappiness all around.”
Seek Help.
Dividing up the marriage assets is emotional and financially risky if you are not sure what you are doing. Early in the divorce, both spouses should consult their mortgage provider, realtor and CPA as well as an attorney in order to review their options and the financial and tax consequences of certain decisions. These objective outsiders will help you navigate your particular situation and direct you to other resources. In addition, they can act as a go-between if the divorce is contentious.
[One other divorce professional you may want to contact when dealing with the financial questions of divorce is a Certified Divorce Financial Analyst. These professionals are trained in how to help couples develop different scenarios for an equitable division of their assets and debts so they’ll each have a better picture of what their financial life after divorce will be like.]
“It is a false economy to do a divorce yourself. I’ve seen couples ruin their credit by doing it wrong. In one case, so many mistakes were made; one partner almost went to jail. It’s not worth it,” said Phillips. “Plus the experts can tell you about Owelty Liens and other ways to get the best out of a bad situation.”
“Lack of communication makes the divorce harder,” says Rayburn. “I often will work with both spouses in a divorce to help sell the old home, refinance and/or find a new, less expensive home if that is their post-divorce reality. I’ve even helped people through multiple relationships over the years because I was able to facilitate communications between the parties.”
“I often give my clients a list of good appraisers to call on,” says Watson. “Even if they don’t plan to sell or refinance right away, they need an appraisal in order to fairly determine the value of the home for the divorce settlement. I can then take that appraisal and show them how much equity is in the house so they can have more meaningful discussions.”
As with most issues related to divorce, there is no single best way to handle your mortgage. Divorcing couples must take a long look at their finances, and make realistic decisions based on a thorough understanding of their options.
Have more questions about how to handle your mortgage through divorce? Contact an experienced loan officer like Mark Watson at Guardian Mortgage Company today about your specific situation. Guardian Mortgage Company has been serving North Texas since 1965. Mark Watson (214) 473-7954.
Your Life After Divorce Assignment:
If you’re at the point of trying to decide what to do with the marital home, focus on the business decision you need to make. Despite how much you are attached to your home, the fact is it’s just a thing, a place. Spending your energy deciding how to best deal with this marital asset instead of what it represents will help you come to the best decision for you – the decision that you’ll be most comfortable with financially and emotionally in the long haul.
If it’s difficult for you to separate the business aspect of this decision from the emotional one, give me a call at 817-993-0561 so we can schedule a Complimentary Consultation and together we’ll figure out a way for you to have an easier time making the decisions you need to make as part of your divorce and make your life after divorce as good as it can be.
You don’t have to go through this alone. I’m Dr. Karen Finn, a divorce coach and advisor. I understand what you’re going through because I’ve been through it too. I’ve been helping people just like you who are dealing with all the stress and pain of divorce since 2007. You can join my anonymous newsletter list for free weekly advice or email me directly for a free consultation at Karen@functionaldivorce.com.
Are you looking for more tips about setting yourself up for your best possible post-divorce life? You can find more great information at Life After Divorce.
Have A Great Online Dating Experience
Dating after divorce can be confusing. After all, it’s probably been a while since you last dated and things have CHANGED since then.
One of the biggest changes in dating over the last 10-15 years is the number of people who use online dating services. Did you know there are even websites dedicated to letting you know who the top online dating services are? These services are a BIG business and it’s OK to use them. When my clients decide to start dating, most of them use an online dating service or two. Heck I even used one to meet my 2nd (and current) husband.
Online dating, just like any other kind of dating, is terrific IF you’re aware of these three pitfalls.
The first pitfall is lack of safety. I’ve heard stories from both men and women about some positively scary situations they found themselves in when they met a date. Here are some key things you can do to be a bit safer when you date online:
When you’re using an online dating service, be careful of your identity. Don’t use your full name on your profile that’s open to the public.
Ask the other person for their number, don’t freely give yours away. It’s OK to block your number and make your first call(s) anonymously.
For heaven’s sake, DON’T give someone you’ve never met your address to come pick you up. When you’re ready to meet someone, arrange to meet them someplace public. Park someplace where there are lots of others coming and going. It’s also a good idea to let someone know someone know where you are going to be meeting your date and have them call if they haven’t heard from you in a couple of hours.
The second pitfall is looking for a spouse instead of learning to date. One of the most common things I see people do when they’re starting to date again is to focus on finding a spouse instead of focusing on dating. There’s a big difference between the two!
When you focus on finding a spouse, going out becomes a lot more serious, a lot more intense. You might even start to worry about how many dates you go on before you decide if you want to be serious with this person. Sometimes you don’t go out with more than one person at a time because you want to make sure you give the current person the benefit of the doubt.
When you’re focused on dating, the whole thing is a bit more casual. There’s less stress and pressure to impress and more emphasis on figuring out whether or not you’re enjoying yourself. Focusing on dating is a great way to learn what you do and don’t like about others and yourself when you’re around them. This knowledge will allow you to move on when it’s right for you. One important point here is that you need to be up-front with the people you’re dating to let them know where you’re coming from and so they don’t get the wrong idea about your intentions.
The third pitfall is thinking you must respond and/or date everyone who contacts you. You have no responsibility to the people who reach out to you. You don’t have to respond to everyone and you definitely don’t have to go out with all of them either. You deserve to be picky about who you spend your time on and with. Your time and how you spend it is how you create your life, so be picky about whom you spend time with!
I want you to think of dating as cultivating friends and learning about yourself. Most people aren’t ready to get into another serious relationship right after they get divorced. They need some time to rediscover themselves and figure out what they do and don’t like about other people. That means going out with other people to have fun.
Dating is supposed to be fun and using the online services can be a great way to meet some amazing people. Just be sure to avoid the pitfalls!
Your Online Dating Assignment:
Do some research. There really are a lot of sites out there to help you meet people to date. Each site has its own personality. Check out a few and decide which site or sites best fit you.
Be open to learning about yourself. The dating experience should be fun and put you and your date in new situations that will allow you both to learn about yourselves and each other. Successful dating requires that you be ready to learn stuff about yourself without the expectation that you or your date be perfect.
Are you ready to date? OK, this probably should have been the first step of the assignment, but I saved it to last so you’d be sure to see it. There’s no rule about when you’re ready to date, but generally, you want to be through the worst of the emotional part of your divorce. If you’re curious to know where you are on the continuum of being through with the emotional part of your divorce you need to check out the Fisher Divorce Adjustment Scale (FDAS) at http://drkarenfinn.com/work-with-me/how-long-does-it-take-to-recover-from-divorce
I’m Dr. Karen Finn, a divorce coach and advisor helping people just like you who are dealing with the stress and pain of divorce. You can join my newsletter list for free weekly advice. If you’re interested in taking the first step toward working with me, you can schedule an introductory private coaching session.
If you’re looking for more help on how to deal with your life now, read more articles about Life After Divorce.
Wrapping Up 2012
Most of us tend to be forward thinkers. We’re always looking at what’s next. As soon as we finish one thing, we rarely take the time to savor our success before we’re off to the next task or adventure.
This time of year, most Americans are gung-ho about their New Year’s resolutions before the struggling of achieving them sets in over the next few days.
One of the best ways to build the strength and determination to achieve your New Year’s resolutions is to build your belief in yourself by spending a little time reviewing all the good things that happened in 2012 – especially those things that help you know you can achieve your resolutions.
When you’re going through divorce, it’s especially important that you take time out to savor the good things. For most people, divorce has a way of coloring things with a more negative cast. The thing is there are usually good things that happened during the past year too. It’s worth the time to find and appreciate them so your world view can be a bit rosier and happier.
When I review all the things I’ve done, accomplished, and experienced in the previous year, I’m always amazed at how much good stuff I packed into the year! It takes me a couple hours to review my calendar, my business results, photos, my facebook wall posts, and my tweets for the previous year. Besides allowing me the time to appreciate my family, friends, business associates and clients, my year-end review helps me to prepare for the coming year and set more realistic resolutions for the New Year.
Your Functional Divorce Assignment:
Make your year-end review a priority and schedule a couple of hours for it. Once a year, it’s totally worth taking this time for yourself to review where you’ve been and see where you’d like to go.
Gather together your calendar, pictures and anything else that will help you remember all the good stuff from 2012. You may be like me and want to check out your facebook wall too!
Keep your appointment with yourself. Enjoy reviewing all the wonderful things that you got to do, see, and accomplish in 2012. Use the oomph you get from this to help you set and accomplish the resolutions you’ve made for yourself.
Schedule more time if you need it. I find that sometimes people need a bit more time to get through their year-end review when they’re going through divorce. Sometimes the review can trigger some other emotions that need to be worked through. If that happens to you, don’t worry, you’re not alone. Allow yourself the time you need to process your thoughts and feelings and then get back to enjoying the good things.
If you’re ready for an outside perspective and ready to get the help you deserve to make 2013 your best yet, reach out to me by email at karen@functionaldivorce.com or by phone at 817-993-0561. We can schedule a Complimentary Consultation to help you put your plans in place for making 2013 your best year yet!
I’m Dr. Karen Finn, a divorce coach and advisor helping people just like you who are dealing with the stress and pain of divorce. You can join my newsletter list for free weekly advice. If you’re interested in taking the first step toward working with me, you can schedule an introductory private coaching session.
Flexibility: It’s About More Than Just Muscles
Life changes a lot when you separate and divorce. Things that used to be a regular part of life just aren’t anymore. And when things change in unexpected ways, we can get scared, frustrated and angry.
When clients begin working with me, they’re usually experiencing some combination of fear, frustration and anger. One of the first things we do is dive into what’s behind or at the root of these emotions. What we usually discover on our deep dive are limits that have been disregarded in some way. The limits could be behaviors, expectations, thoughts, beliefs or even habits.
The identification of your personal limits is a critical part of restructuring your life during and after divorce.
Some people are quite adept at identifying their limits – what they can and can’t do, what they think and why they think it, what they expect and why they expect it and what their habits of thought, belief, response and action are.
Others aren’t as aware of their limits. They aren’t quite sure of what their limits are or even if they want to know because they do and think what others tell them to.
And then there are people everywhere in between these two extremes.
Regardless of your starting point, I think knowing and understanding your limits is one of the key pieces to successfully navigating divorce. Your limits can help you understand what’s truly important to you as you negotiate your settlement. And knowing your limits will even allow you to ask for help and support when you need it.
Your limits will be tested, pushed, prodded, and beat against before, during, and after your separation and divorce. Who’s doing all this “exploring”? EVERYONE. Or at least it will probably feel that way. However, the chief “explorers” are usually your soon-to-be-ex and you. I’ll bet you already get how your soon-to-be-ex figures in here, but did you expect to also be one the chief “explorers”? The thing is that by virtue of going through the divorce process you’re asking yourself to completely redefine what your life is like. And anytime you or anyone else changes it’s a matter of testing and exploring previous limits.
I know all the testing, pushing, prodding, and beating against limits is at a minimum uncomfortable and at worst excruciating. However, the payoff is either an adjustment or a reaffirming of your limits along with, ideally, improved ways of communicating them to yourself and others. With your new limits you’re most often better off than you were with your old limits. Kinda like that old adage – what doesn’t kill me makes me stronger.
Great, right? There’s going to be some struggle and then things will be better. UGH! There’s nothing there about how to make the transition from married to divorce easier! And here’s where I’m going to tell you that the way to make things easier is to be flexible and loving while you’re exploring your limits so you can adjust and evaluate them by choice instead of by force.
By allowing yourself to be flexible as you explore your limits you’ll be much more able to understand and choose what to do with your limits and your life as you move forward through your divorce process. The flexibility will also allow you to negotiate from a more confident spot because you’ll be able to more easily see the options available to you. Developing the ability to be flexible will help you now as you’re navigating your divorce, but throughout your life.
Your Functional Divorce Assignment:
Know your limits. As you’re proceeding through your separation and divorce process take note of your limits. You’ll probably become aware of them most easily when you’re experiencing a strong emotion.
Explore your limits. Once you’ve identified a limit, ask yourself questions like “How did I develop this limit?”, “What’s the benefit of this limit?”, and “What might adjusting this limit be like?” Take note of what you discover about yourself.
Adjust your limits. Exploring limits almost always gives you new ideas of how to be, act, and think. Take advantage of your discoveries and adjust your limits in ways that make you feel wonderful!
As always, I’m here if you need some help in increasing your flexibility. You can reach my by email at karen@functionaldivorce.com and by phone at 817-993-0561.
I’m Dr. Karen Finn, a divorce coach and advisor helping people just like you who are dealing with the stress and pain of divorce. You can join my newsletter list for free weekly advice. And if you’re interested in taking the first step toward working with me, you can schedule an introductory private coaching session.
© 2012 Karen Finn. All rights reserved under all copyright conventions.
Stop Scaring Yourself!
Here’s how to stop letting your imagination make things seem so much worse than they really are.
Since it’s the season for scary stuff, I thought I’d tell you a couple of horror stories I told myself when I was getting divorced. The first story is the everyday story. The second is the special event story.
I’ll start with the everyday story. I started telling myself various versions of this story shortly after my ex-husband and I separated in March of 2002.
My fears were LARGE. They invaded almost every facet of my life. I was afraid of living alone. I was afraid of not being able to support myself. I was afraid that I’d get sick from eating food that had gone bad. I was afraid of getting fat. I was afraid of getting old. I was afraid of losing my job.
I’m guessing you get the picture. It’s what I used to do with each of these fears that made up the everyday story.
Here’s one version of the story. I’m afraid of losing my job. Then I’d tell myself that if I lost my job, then I wouldn’t be able to afford to pay my bills. If I wasn’t able to pay my bills, then I’d lose my house and have to live on the street. If I had to live on the street then I wouldn’t’ survive long and I’d die a horrible death.
Here’s another version of the story. I’m afraid of getting fat. If I get fat, then no one will ever want to date me. If no one ever wants to date me, then I’ll never get remarried. If I never get remarried, then I’m going to be alone for the rest of my life. If I’m alone for the rest of my life, I’ll be living alone forever (which amped up the scary factor). If I’m living alone forever, then what would happen if I lost my job? If I lost my job then I wouldn’t be able to pay my bills. If I can’t pay my bills, then I’ll lose my house and have to live on the street. If I had to live on the street then I wouldn’t survive long and I’d die a horrible death.
Are you getting the idea of my everyday story? I was convinced that if any one of my fears came true then I wouldn’t survive long and I was going to die a horrible death.
OK, now for the special event story.
Shortly before my divorce was finalized, some friends from graduate school invited me to join them in Spain. Although I was in desperate need of a vacation, it took some convincing before I finally agreed to join them in Spain for a week. Initially, I needed convincing because I was afraid of spending the money just in case I lost my job. (Yes, that does mean that I started telling myself the everyday story.)
As the day for departure approached, I was happily anticipating and dreading it at the same time. I started telling myself that I was a horrible person because I was getting divorced and that I deserved to die. The closer the day for departure loomed, the more convinced I was that I was probably going to die in a plane crash because I didn’t deserve to have fun. I made myself miserable and a nervous wreck. All of the fun I could have had anticipating the vacation I turned into torment and torture.
As you already know, my horror story didn’t come true. I didn’t die in a horrible plane crash. I even managed to have some fun in Spain and on the way home I was too tired to worry about whether or not the plane crashed.
So what’s the point of me telling you my stories? Well, what I’ve found over the years is that many people dealing with divorce torture themselves with their own horror stories. I’ve heard horror stories about never being happy again. I’ve heard horror stories about never being financially well off again. I’ve heard horror stories about children never loving their parents again. I’ve even heard horror stories similar to my own.
In case you’re telling yourself horror stories, I want you to know two things. First, you’re not alone; many people tell themselves horror stories when they’re dealing with divorce. Second, it’s OK to tell someone who won’t judge you, about your stories and have them help you create a better story – a story that inspires you and makes you happy to be you.
Your Healing After Divorce Assignment:
| Image courtesy of adamr / FreeDigitalPhotos.net |
Identify the horror stories you’re telling yourself. What are the stories you’re telling yourself about your future? Anything that doesn’t inspire happiness and positive anticipation of the future just might be a horror story.
Stop torturing yourself and reach out for help in rewriting your horror story. If you’re ready to change the story you’re telling yourself into one with a happy ending, schedule a Complimentary Consultation with me. We’ll discuss how coaching can help you more quickly and completely work through your divorce and rewrite your story. Simply contact me now either by email karen@drkarenfinn.com or by phone 817-993-0561 and I’ll be happy to schedule some time with you.
I’m Dr. Karen Finn, a divorce and personal life coach. I help people just like you who are dealing with the stress and pain of divorce. You can join my newsletter list for free weekly advice.
If you’re looking for more help recovering from your divorce, read more articles about Healing After Divorce.
From Endings To Beginnings
For most people, spring brings to mind sprouting plants, rain showers and new beginnings. And yet, despite the season, most people going through divorce find it hard at times to think of beginning anything new when what was -their marriage- is ending.
It’s so easy to get caught up in all the things that just won’t be any more -growing old together, taking that dreamed of second (or maybe first) honeymoon. It is sad that those things won’t be. And yet, your life will go on. You will be joyful and happy again -even if it doesn’t quite seem like it right now.
What do you say to the idea of starting to think and dream of things to say “hello” to? I hope I heard you say “YES!”
One of the things I know about any relationship and especially marriage is that you make compromises along the way. Maybe your former spouse snores like a freight train and in order to get any kind of sleep at night you’ve worn ear plugs to bed for the last 20 years! Or maybe your former spouse had food allergies and was allergic to garlic. So you haven’t eaten garlic bread or ordered pizza for the last 5 years. (Yes. I do know someone who was in a relationship with someone allergic to garlic. No, it wasn’t me.)
I’m guessing there are certain compromises you’ve made during your marriage -things that you simply won’t have to do anymore. Am I right? Well, these are exactly the things that you can now say “hello” to now.
You Functional Divorce Assignment:
Make a list of compromises you made during your marriage. Put it all down. Did you give up a favorite hobby? Did you change what you ate? Did you change how you spoke?
Decide what you want to invite back into your life. Take a good look at your list. What on the list do you want to start doing again? What on your list do you want to start having again?
Write a “hello” letter. Using that list of things you want to invite back into your life, write a letter to yourself about all the things you’re going to invite back into your life. This is your “hello” or new beginnings letter.
Pick one. Which thing that you’re saying “hello” to are you ready to do or have right now? Make sure it’s something that you’ll enjoy now and feel good about in the long term. Then, just go after it!
I’m Dr. Karen Finn, a divorce coach and advisor helping people just like you who are dealing with the stress and pain of divorce. You can join my newsletter list for free weekly advice. And if you’re interested in taking the first step toward working with me, you can schedule an introductory private coaching session.