People sometimes assume I got into divorce real estate because I went through one myself. I didn’t — at least not directly. But after more than 22 years as a traditional Realtor®, I’ve watched enough home sales get tangled up in divorce to know it stays with you. Once you’ve seen it up close, you can’t really unsee it.

What I kept noticing

Early in my career, I treated the word “divorce” in a transaction like any other detail — something to note and move past. If I was representing both spouses in the sale of their home, I approached it the same way I approached any other sale.

It didn’t take long to realize something was missing from that approach.

There was nothing dramatic about it — just a series of quiet signals that this situation called for something different. I watched two people who once trusted each other completely begin second-guessing every number I gave them. I saw a spouse agree to a listing price simply to avoid another argument, not because they believed it reflected the home’s true value. And despite my best efforts to stay neutral, I sometimes found myself perceived as having taken one side over the other. That’s the part that stayed with me.

The training I’d received as a real estate agent simply wasn’t built for this kind of transaction. It assumed a buyer and seller who were largely aligned on the outcome and willing to lean on a real estate professional to guide them there together. Divorce rarely works that way. Both people still need the same facts, the same transparency, the same fair process — but they may no longer be willing to trust the same person to deliver it to both of them at once. That realization changed how I approached these transactions entirely.

The moment it clicked

There was one transaction in particular that changed how I looked at this work. I won’t get into the details, out of respect for the clients — but I watched a couple lose weeks, and a fair amount of goodwill, arguing over what their home was worth.

The value itself wasn’t really the issue. Trust was. Neither of them fully believed I could give an objective opinion without putting a thumb on the scale for the other. I was an experienced agent by that point, but nothing in my training had prepared me for two divorcing homeowners whose interests, emotions, attorneys, finances, and futures were all tangled together in one transaction. I knew how to price a home, market it, negotiate it. Divorce real estate asked for something else entirely.

That experience sat with me for a long time. I remember thinking there had to be a version of this profession built specifically for situations like this one — where the real estate professional’s value isn’t just getting a house sold, but being someone, both people can trust equally when they may no longer trust each other.

That question is what led me to the Ilumni Institute and, eventually, the Certified Divorce Real Estate Expert (CDRE®) designation. Earning it was never about padding a resume or adding a credential to my marketing materials. It was the first time I’d come across training that actually spoke to what I kept encountering in these transactions — real strategy and structure for situations that traditional real estate education simply wasn’t built to handle.

What changed

Becoming a CDRE® didn’t just add letters after my name. It changed how I do the work. Somewhere along the way, I stopped thinking of my role in these cases as “advocating” for one client. Instead, I came to see myself as a trusted neutral advisor — someone both spouses could rely on during a process that was already asking so much of them. It’s a subtle shift, but one that matters more than it might seem. When a home is part of a divorce, decisions about value, repairs, timing, communication, access, and offers can quietly become extensions of the larger conflict, even when none of them would carry that weight in a typical sale.

My job isn’t to choose a side. It’s to bring clarity, consistency, and real estate expertise to a process that can already feel like too much.

I also learned how important it is to work alongside the other professionals involved — family law attorneys, mediators, financial professionals, other neutrals — instead of operating in my own separate lane. The house doesn’t exist apart from the divorce. It touches cash flow, support calculations, debt, equity distribution, and what life looks like for both people once everything is finalized. Recognizing that bigger picture reshaped the way I approach every transaction.

The learning hasn’t stopped, either. For the past three years I’ve continued building on that foundation through the CDRE® Master Program, an advanced track that includes case studies, business planning, and ongoing education focused specifically on divorce real estate. I’ve stayed committed to it because these transactions rarely follow a standard playbook — every case brings its own mix of personalities, finances, legal considerations, and family dynamics. And the more I’ve learned, the clearer one thing has become: my role in divorce real estate isn’t simply to close a transaction. It’s to help ensure the house doesn’t become one more thing two people have to fight about while they’re already navigating one of the hardest transitions of their lives.

Finding Common Ground with the Collaborative Process

One thing I didn’t expect when I started this work was how much respect I’d develop for the collaborative divorce process itself.

There’s real value in bringing together professionals who each know their own lane but are also trained to move toward resolution rather than conflict. The goal isn’t for one side to “win” — it’s to create a process where clients can make informed decisions, with the right expertise in the room at the right time. That mindset closely mirrors how I now approach real estate in these situations. A neutral real estate professional can provide clear, reliable information about the property and the market without adding to the tension, while attorneys handle the legal side and financial professionals manage theirs. Everyone plays a defined role, and when those roles work well together, it’s the clients who come out ahead.

Why I keep doing this work

Divorce real estate isn’t the easiest niche. It asks for more patience, more composure, and a lot more listening than a typical sale. But I keep doing it because I’ve seen what it looks like when it goes right — when two people ending a marriage can still walk away from the house decision feeling like they were both treated fairly. That’s not a small thing. For a lot of clients, it’s one of the only parts of the process that felt calm.

About the Author

Shannon Lindstrom is a Realtor® with RE/MAX Results serving Minneapolis, St. Paul, and the greater Twin Cities, with a specialty in divorce real estate. As a Certified Divorce Real Estate Expert (CDRE®), Shannon helps clients navigate the sale or purchase of a home during divorce, serving as a neutral, informed resource during an often complex and emotional transition.

She works collaboratively with attorneys, mediators, financial professionals, and other members of the divorce team to help preserve home equity, reduce conflict, and support informed decision-making. Known for her direct communication and steady, detail-oriented approach, Shannon provides clients with clarity and confidence when it matters most.

Shannon is also a Certified Military Residential Specialist (MILRES), Military Relocation Professional (MRP), and Veterans Certified Real Estate Agent (VCA), bringing additional expertise to military members, veterans, and their families.

Shannon Lindstrom, Realtor®,
AHWD, CDRE®, GREEN, MILRES, MRP, VCA

RE/MAX Results
Direct: 612-616-9714 | www.ShannonLindstromRealtor.com

 

 

In January of 2022, mortgage interest rates began their sharpest increase since the early 1980s. While this has not only increased the monthly cost of a mortgage payment for the same loan amount, the severity of the increase has had a lock-in effect for people with current interest rates in the 2% and 3% range who are reluctant to move if they don’t have to.

The increase in rates has pushed much of the buyer demand to the sidelines, but since very few have opted to sell, the housing market has remained surprisingly resilient. Prior to the increase in rates, there was a housing supply shortage creating an extreme seller’s market where buyers frequently paid well over list price. While home appreciation has slowed, values in many areas have continued to hold up because inventory remains limited.

In the divorce world, higher mortgage rates have made it more difficult to “uncouple” the mortgage. Refinancing to remove an ex-spouse’s name and pull out equity to pay a marital settlement has become much more costly than it was just a few years ago. Navigating these nuances has made it difficult for attorneys, mediators, and divorcing clients.

Cooperation Matters More Than Ever

High conflict between spouses makes divorce more difficult and more expensive. The same is true when trying to separate ownership and responsibility for the marital home.

Fortunately, there are many situations where aligning incentives can overcome conflict. For example, if the exiting spouse wants their marital settlement from the home’s equity, they may be willing to sign a Quit Claim Deed relinquishing their title rights in exchange for receiving those proceeds.

Another example occurs when an exiting spouse will be receiving spousal maintenance. Leaving their name on the existing low-interest-rate mortgage may allow the retaining spouse to keep a substantially lower payment than would be possible through refinancing.

Even when incentives are not perfectly aligned, creative solutions can create a win-win outcome. One example is using a second mortgage to fund a buyout rather than replacing an existing first mortgage with a much higher-rate refinance.

Four Common Mortgage Options During Divorce

When one spouse wishes to keep the home and equity must be divided, there are generally four primary options to consider.

Option 1: Remove the Exiting Spouse Through a Qualifying Name Delete Assumption (QNDA) and Obtain a Second Mortgage

A Qualifying Name Delete Assumption allows one borrower to be removed from an existing mortgage while keeping the original loan terms intact.

This option is commonly used when the exiting spouse wants their name removed from the mortgage and the loan servicer allows assumptions.

However, before relying on this option, several questions should be answered:

  • Will the retaining spouse qualify under the servicer’s guidelines?
  • What debt-to-income ratio does the servicer allow?
  • Will the borrower qualify for the second mortgage needed to fund the buyout?
  • How long will the QNDA process take?

Unlike a refinance, a QNDA often takes one to four months and processing timelines can vary significantly among servicers.

Option 2: Leave the Exiting Spouse on the Existing Mortgage and Obtain a Second Mortgage

When a QNDA is not available—or even when it is—leaving the exiting spouse on the current mortgage can be an effective solution.

This option preserves the low interest rate on the existing first mortgage while providing access to equity through a second mortgage.

The three most common concerns from the exiting spouse are:

Concern #1: I Need My Name Removed So I Can Purchase Another Home

In many cases, a properly drafted divorce decree can address this concern. Mortgage debt can often be excluded from debt-to-income calculations when the decree clearly assigns responsibility for the payment and includes hold harmless language.

Concern #2: I’m Worried Missed Payments Will Damage My Credit

If the mortgage payment is missed, both parties’ credit can be impacted. However, attorneys can build safeguards into the agreement such as:

  • Online access to verify payments
  • Monthly payment confirmations
  • Notification requirements if a payment is late

Trust and cooperation remain important, but practical protections can reduce risk.

Concern #3: How Long Will My Name Stay on the Mortgage?

Many parties agree that the name will remain on the loan until a future event occurs. Common examples include:

  • One to two years passing
  • Interest rates reaching a specified level
  • The retaining spouse qualifying for a refinance

This flexibility often creates a workable compromise.

Option 3: Refinance and Pay the Marital Settlement

When the exiting spouse requires their name removed and a QNDA is unavailable, refinancing may still be the best option.

Although today’s rates are higher, refinancing offers several advantages:

  • Removes the exiting spouse from the mortgage
  • Provides funds for the marital settlement
  • Allows higher debt-to-income ratios than some assumption programs
  • Removes uncertainty regarding future qualification

While the monthly payment may increase, the simplicity and certainty of the transaction often outweigh the disadvantages.

Option 4: Sell the Home

Sometimes neither spouse can—or wants to—keep the property.

In those situations, selling the home and dividing the proceeds according to the divorce decree may be the most practical path forward.

This option can also be beneficial when one spouse plans to purchase a new home while the other plans to rent. With proper drafting, attorneys can structure the settlement so the purchasing spouse receives their share of proceeds before closing on the sale, allowing them to qualify for their next home without waiting for the transaction to be completed.

Where Are Mortgage Rates Headed?

Forecasting rates is always difficult.

The Federal Reserve raised rates aggressively to combat inflation, and while inflation has moderated from its peak, economic conditions continue to evolve. Generally speaking, if inflation continues to decline and economic growth slows, mortgage rates may gradually move lower.

The timing and magnitude of future rate reductions remain uncertain, but many economists expect rates to eventually trend downward from current levels.

What Does This Mean for the Housing Market?

The housing market remains heavily influenced by inventory shortages.

Even though higher rates reduced buyer demand, many homeowners with mortgages in the 2% and 3% range have chosen not to sell. This has limited available inventory and helped support home values.

If rates decline meaningfully, buyer demand will likely increase. The question becomes whether enough homeowners decide to sell to offset that demand.

For divorcing clients, this environment presents an interesting opportunity. Purchasing a home while rates are elevated may mean less competition and greater negotiating power. If rates eventually decline, refinancing later may become an option.

Final Thoughts

Higher mortgage rates have undoubtedly complicated divorce-related housing decisions. However, they have also created opportunities for more creative settlement structures.

Whether through a QNDA, a second mortgage, a refinance, or a sale, there are often more options available than clients initially realize.

Understanding these alternatives early in the divorce process allows attorneys, mediators, and clients to make informed decisions that balance financial realities with long-term goals.

Every divorce is unique, and mortgage strategy should be evaluated as carefully as any other aspect of the settlement process.

To learn more or discuss a specific case, contact Brett Leschinsky.

About the Author

Brett Leschinsky is a Divorce Mortgage Specialist with Resource Mortgage. For over 15 years he has helped clients, attorneys, and mediators navigate the complex intersection of mortgage financing and divorce. Brett specializes in analyzing settlement options involving the marital home, spousal maintenance income, equity buyouts, refinancing strategies, and mortgage qualification issues before, during, and after divorce. He works closely with family law professionals to help clients make informed housing and financial decisions throughout the divorce process.

Brett Leschinsky
Sr Mortgage Consultant, Divorce Mortgage Specialist
Resource Mortgage
612.590.7896 | brett@mortgageforest.com
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