Written by: Manjula Shaw, CFP®, CDFA®
“Tips from the Trenches” is a series of articles based on conversations with professionals who work with individuals facing or considering the prospect of divorce. Watch this space for discussions with professionals in Family and collaborative law, Forensic-Certified Public Accountants, Mediators, Marriage Counselors, Family Court Judges, and Valuation Specialists.
Manjula Shaw is a Certified Financial Planner (CFP®) and an Asst. Vice President at Tanglewood Legacy Advisors. As a Certified Divorce Financial Analyst (CDFA®), Manjula specializes in helping individuals navigate the complexities of late-stage divorce, including asset division, alimony, and child support.
Manjula’s conversation is with Carlene Johnson, a Certified Divorce Real Estate Expert (CDRE®). Carlene is an Air Force Veteran, conscientious Realtor®, and the President of the Houston, TX Chapter of the Veterans Association of Real Estate Professionals (VAREP). Previously, Carlene was a Clerk and Court Coordinator at the Harris County Family Law Courts.
Divorcing Couple Needs to Sell their Marital Home – What Are Available Resources?
It is typical for a divorcing couple to reach out to a Realtor® to list their home. However, the couple may wish to speak with a Certified Divorce Real Estate Expert (CDRE®). This specialized credential allows real estate professionals to work with clients going through a divorce. The certification equips a Realtor® with the necessary knowledge and skills to handle real estate transactions’ unique challenges and complexities during divorce proceedings.
By obtaining the CDRE® certification, real estate professionals demonstrate their commitment to supporting clients through one of the most challenging times in their lives, ensuring that the real estate aspects of the divorce process are handled with sensitivity, accuracy, and professionalism.
According to Carlene, the conflict resolution training she received in her CDRE® curriculum has been a tremendous help in resolving contentious situations that arise with divorcing couples. For example, even though the house needs to be sold to divide the marital assets, one spouse may not want to do so. In a recent transaction, the “in spouse” did not want to sell the house, which created roadblocks. The “out spouse” was in a powerful position professionally. The “in spouse” painted themselves as the victim. However, during her intake process, Carlene realized that the actual picture differed from what the “in spouse” painted. She then used her conflict resolution skills to successfully navigate the couple beyond the friction to sell the home.
How is a CDRE® different from a Realtor®?
The CDRE® designation was launched in 2018 and is tailored for licensed Realtors® to undergo additional training in the following areas:
1. Understanding Divorce Law: CDRE®s are trained in the legal aspects of divorce, particularly how it impacts real estate transactions. Topics include knowledge of state laws, court procedures, and the role of various legal professionals.
Carlene’s previous experience in the Harris County Family Law Courts gives her a unique skill set in navigating the judicial aspect of a property sale. This experience helped Carlene realize that “everyone’s mind does not process the same. Logic is not necessarily logic.”
However, please remember that a CDRE® is not a family law attorney.
2. Emotional Intelligence and Communication: CDRE®s learn effective communication techniques with clients experiencing high stress and emotional turmoil. Training includes mediation skills and strategies for managing conflict between divorcing parties.
Generally, Carlene ensures the couple’s children are not within earshot during intake. “A child hearing a parent say that he doesn’t want to sell the home because it is where the kids grew up may internalize that parents are fighting because of her.”
Carlene has a rule of thumb not to share information with the other divorcing party if it is irrelevant to the home sale. Do not participate in the couple’s opinion of each other. Carlene says there are “three sides to each story. Generally, the truth is in the middle.”
3. Financial Acumen: The certification covers financial considerations relevant to divorce, such as handling property division, equity distribution, and the tax implications of selling a home during a divorce.
However, according to Carlene, the advice applies only to the financial slice of the home sale.
Please keep in mind that a CDRE® is not an Accountant.
4. Valuation and Market Analysis: CDRE®s are trained to help value properties in the context of divorce, which may involve unique circumstances such as court-ordered appraisals or contested valuations.
5. Collaboration with Divorce Professionals: CDREs® often work closely with other divorce professionals, including attorneys, mediators, and financial advisors. The certification emphasizes the importance of a collaborative approach to ensure the best outcomes for clients.
6. Ethical Considerations: Maintaining ethical standards is crucial for CDRE®s, who must navigate potentially contentious situations while adhering to professional codes of conduct.
A CDRE® is a neutral third party and only represents the client when selling the property, not the buyer of the property. They are fiduciaries, meaning a CDRE® is required to act in their client’s best interest.
What Does the Process of Working with a CDRE® Look Like?
During the intake process, sellers are treated as separate individuals. Carlene does not meet with the divorcing parties at the same time. Carlene writes down the responses to her questions with the first spouse. And then does the same thing with the second spouse. Separate interviews allow Carlene to get each individual’s unfiltered perspective and insight. This insight is beneficial in navigating the thorny issues and bringing both parties together without being contentious.
Each person’s perspective is their reality. In her work, Carlene has found that her clients need her to listen and empathize. And sometimes, an opportunity to vent.
Carlene says that “the most effective way to retain a CDRE® is for the counsel representing the divorcing couple to agree and include it in the Divorce Decree that a named CDRE® would be handling the sale of their property.”
PLEASE SEE IMPORTANT DISCLOSURE INFORMATION at
www.family-cfo.com/important-disclosure-information/
