Sample Divorce Plan by Blueprint Team Land Mortgage

Divorce Planning Building Brighter Futures, One Financial Blueprint At a Time! Prepared for:

Blueprint M&D Planning 1420 Cypress Creek Rd. Cedar Park, TX 78613

Prepared by: Curtis McNeill CertiďŹ ed Mortgage and Divorce Planner

Phone 512-335-6601 Fax 866-378-6983 curtis@blueprintmtg.com

www.blueprintmtg.com

Prepared for: Prepared by: Curtis McNeill Certified Mortgage and Divorce Planner CERTIFIED DIVORCE PLANNING PROFESSIONAL CODE OF ETHICS AND STATEMENT OF CORE VALUES: Certified Divorce Planning Professionals are committed to bringing clarity and harmony to their client’s lives by planning and protecting their CRADLE, ensuring that their client leaves their divorce independent and fiscally int act. Planners accomplish this through a strict adherence to the following professional code: 1. Planners commit to a strict guide of confidentiality and will only release information to others on the divorce team with written permission of their client. 2. The planner’s recommendations are always made in the best interest of their client. 3. Planners will never sell their or another’s product while ret ained. 4. Planners will openly acknowledge their lack of expertise in a specific area and make for appropriate recommendations of a service provider. 5. Planners commit to never t ake part in a conspiracy to disenfranchise a spouse and or the legal system. 6. Planners are obligated to treat their client and their family with the utmost of respect, sympathy and empathy and to never pass judgment on the client or their divorcing spouse.

Blueprint M&D Planning 1420 Cypress Creek Rd., Cedar Park, TX 78613

PHONE 512-335-6601 FAX 866-378-6983

curtis@blueprintmtg.com www.blueprintmtg.com

Sample Divorce Plan Your Goals + Our Advice = Total Strategy Prepared for: Jane Doe Divorce

Blueprint M&D Planning 1420 Cypress Creek Rd. Cedar Park, TX 78613

Prepared by: Curtis McNeill CertiďŹ ed Mortgage and Divorce Planner

Phone 512-335-6601 Fax 866-378-6983 curtis@blueprintmtg.com

www.blueprintmtg.com

Goals Snapshot Your Goals + Our Advice = Your Goals In previous interaction, you shared your ﬁnancial objectives with me. Here are some of the goals you highlighted:

• • • • •

Receive alimony or alternative compensation Keep both children in private school Sell primary residence Rent or own your own home Receive child support

Blueprint M&D Planning 1420 Cypress Creek Rd., Cedar Park, TX 78613

PHONE 512-335-6601 FAX 866-378-6983

curtis@blueprintmtg.com www.blueprintmtg.com

Sample Divorce Plan your goals + our planning = total strategy Prepared for:

Jane Doe Divorce

Prepared by:

Curtis L. McNeill Certiﬁed Mortgage and Divorce Planner

Advice Summary Credit...Cancel all joint credit cards and accounts and ensure all accounts with existing bills continue to come to you for payment. Open new credit in your name. Open safety deposit box to secure valuables such as jewelry. Change pin numbers and passwords for all bank accounts and e-mail Budget for the divorce with appropriate amount of solvency Place a fraud alert on your credit profile. Taxes...Review t ax returns for the last three years to ensure they have been filed and that there are no unusual deductions that may not be subst antiated in the case of an audit Spousal & Child Support...Spousal and child support must be paid via a check and should never be cashed but rather deposited in full every time they are received. This is critical and should st art immediately as you may need payment history for future reference. Property...Place your primary residence up for sale and order a Quick Sale Appraisal to determine what the property is valued at to have it sell in 30 to 60 days. Insurance...Husband should be required to maint ain disability coverage in order to secure child support payments. Husband must agree to have his life insured with a Term Life Insurance policy of which you will own and pay for with the children as beneficiaries. Obt ain a Term Life Insurance on your life, with your children as beneficiaries, to protect them against your early death. Obt ain quotes for Long Term Care coverage. At 42 this is an opportune time to lock-in coverage and build it into your monthly household budget. Obt ain a quote for new auto insurance coverage File for COBRA health coverage until you become eligible in your new job. As a cancer survivor ensure that any job you consider will not deny you on a preexisting condition. Health coverage for the children will be critical. Insure that they maint ain coverage under the father’s policy Est ate Planning...Create a Pour Over Will and a Trust for your children. Upon death all of your personal items in your Will, will transfer into your Trust and avoid probate. In addition, it is import ant to est ablish a Trustee for your children to carry out your instructions in your Will.

Blueprint M&D Planning 1420 Cypress Creek Rd. 200-191 Cedar Park, TX 78613

PHONE: 512-335-6601 FAX: 866-378-6983

curtis@blueprintmtg.com

www.blueprintmtg.com

Application-Fannie Mae Form 1003 Fannie Mae, the lending giant, has created the standard loan application that, arguably, is one of the greatest information gathering forms ever developed and thus the reason it’s used during the Planner’s process and incorporated within the Divorce Plan. The first page of this form, labeled Prospect Information, shows the total cost of living for the client. These costs include all installment and revolving debt along with the proposed housing payment. This housing payment maybe rent versus PITI. The first page of the loan application provides general client information such as current address, date of birth, time at residence and contact numbers. The second page of the application reviews the client’s employment (if any) and all sources of income. The third page discloses the client’s known assets, debts from the credit report, monthly household expenses and a list of all real estate owned. The planner’s objective with the use of pages two and three is to properly understand the client’s true current cost of living if nothing were to change and what income would be necessary from work, alimony/temporary maintenance and child support in order for the client’s lifestyle to remain the same. Where lifestyle must change due to a true lack of income and support the planner’s objective is to work with the client to decide what expenses can be eliminated and what debts can be retired to ensure a livable budget. In this case a second application will be completed with the eliminated expenses. All plans are based on current available information and can change.

Prospect Summary

File No. Divorce, Jane

I. Prospect Information Borrower Name

Jane Doe Divorce

Birthday Co-Borrower Name

999-99-9999

SSN

Cell / Alt # 561-555-1212

E-Mail

12/30/1963

561-999-1212

Fax #

E-Mail

SSN

H Phone #

Cell / Alt #

B Phone #

Birthday Present Address

H Phone # B Phone #

Fax #

345 Main Street

Personal Interests

Bay City, TX

Children's Info.

II. Property Information Property Address

Occupancy Status

Primary Residence

Sales Price

Second Home

Down Payment/Equity

Investment Property

Appraised Value

300,000 100.000 % / 300,000

III. Mortgage Information Note Information

Lien Position

Loan Amount

First

Note Rate Term (in months) Due (in months)

6.500 %

Second

360 360

Monthly Payment

Total Debt to income Ratio before Divorce Plan Monthly Debt is ***360% of Monthly Income***

Loan Program:

30 Year Fixed Conv.

Loan Rep:

Curtis McNeill

IV. Underwriting Information Qualifying Ratios

Loan-to-Value Ratios

Primary Housing Expense/Income Total Obligations/Income

358.987 %

Total Income

LTV

Total House Exp

Total LTV

Other Payments

2,666.67 9,573.00

V. Contact Information Contact Date

Time

Memo

Source: Comments:

This planner suggest the client pay off their car from divorce proceeds to their reduce overall monthly expenses and to investigate long-term warranty programs. Additionaly this planner suggest that during the divorce process that the client enroll in their local college to obtain their teachers certification understanding that this will not be communicated to the spouse so as to not inpact potential for temproary support.

Uniform Residential Loan Application This application is designed to be completed by the applicant(s) with the Lender's assistance. Applicants should complete this form as "Borrower" or "Co-Borrower", as applicable. Co-Borrower information must also be provided (and the appropriate box checked) when the income or assets of a person other than the "Borrower" (including the Borrower's spouse) will be used as a basis for loan qualification or the income or assets of the Borrower's spouse or other person who has community property rights pursuant to state law will not be used as a basis for loan qualification, but his or her liabilities must be considered because the spouse or other person has community property rights pursuant to applicable law and Borrower resides in a community property state, the security property is located in a community property state, or the Borrower is relying on other property located in a community property state as a basis for repayment of the loan. If this is an application for joint credit, Borrower and Co-Borrower each agree that we intend to apply for joint credit (sign below):

Borrower

Co-Borrower

I. TYPE OF MORTGAGE AND TERMS OF LOAN Mortgage Applied for:

VA FHA

Amount $

Agency Case Number Conventional Other (explain): USDA/Rural Housing Service Interest Rate No. of Months Amortization Type: Fixed Rate 6.500 % 360/360 GPM

Lender Case Number

Other (explain): ARM (type):

II. PROPERTY INFORMATION AND PURPOSE OF LOAN Subject Property Address (street, city, state, & ZIP)

No. of Units

Legal Description of Subject Property (attach description if necessary)

Year Built

Purpose of Loan

Purchase Refinance

Construction Construction-Permanent

Property will be: Primary Residence

Other (explain):

Complete this line if construction or construction-permanent loan. Year Lot Original Cost Amount Existing Liens (a) Present Value of Lot Acquired $ $ $ Complete this line if this is a refinance loan. Original Cost Amount Existing Liens Year Acquired $ Title will be held in what Name(s)

(b) Cost of Improvements

Total (a+b)

$ Describe Improvements

Purpose of Refinance

Secondary Residence

made

Cost: $ Manner in which Title will be held

Investment

to be made

Estate will be held in:

Jan Doe Divorce

Fee Simple Leasehold(show

Source of Down Payment, Settlement Charges and/or Subordinate Financing (explain)

expiration date)

Borrower

III. BORROWER INFORMATION

Co-Borrower

Co-Borrower's Name (include Jr. or Sr. if applicable)

Borrower's Name (include Jr. or Sr. if applicable)

Jane Doe Divorce Social Security Number Home Phone (incl. area code) DOB (mm/dd/yyyy) Yrs. School Social Security Number Home Phone (incl. area code) DOB (mm/dd/yyyy) Yrs. School

999-99-9999

561-999-1212

12/30/1963

Married (includes registered domestic partners)

Dependents (not listed by

Co-Borrower)

Unmarried (includes single, divorced, widowed)

No.

Separated

Ages 11, 13

Present Address (street, city, state, ZIP)

Own

Rent

2.5

Married (includes registered domestic partners)

Dependents (not listed by Borrower)

Unmarried (includes single, divorced, widowed)

No.

Separated

Ages

No. Yrs. Present Address (street, city, state, ZIP)

Own

Rent

No. Yrs.

345 Main St Bay City, TX Mailing Address, if different from Present Address

Mailing Address, if different from Present Address

If residing at present address for less than two years, complete the following: Former Address (street, city, state, ZIP) Own Rent No. Yrs. Former Address (street, city, state, ZIP)

Own

Rent

No. Yrs.

Former Address (street, city, state, ZIP)

Own

Rent

No. Yrs.

Fannie Mae Form 1003 07/05 CALYX Form Loanapp1.frm 09/05

Own

Rent

No. Yrs. Former Address (street, city, state, ZIP)

Page 1 of 5

Borrower Co-Borrower

Freddie Mac Form 65

07/05

Borrower Name & Address of Employer Self Employed

IV. EMPLOYMENT INFORMATION Yrs. on this job Name & Address of Employer

Co-Borrower Self Employed

Yrs. on this job

School Teacher Yrs. employed in this line of work/profession Position/Title/Type of Business

Business Phone (incl. area code)

Yrs. employed in this line of work/profession Position/Title/Type of Business

Business Phone (incl. area code)

If employed in current position for less than two years or if currently employed in more than one position, complete the following: Name & Address of Employer

Self Employed

Dates (from-to)

Name & Address of Employer

Self Employed

Monthly Income $ Position/Title/Type of Business

Name & Address of Employer

Monthly Income $

Business Phone (incl. area code)

Self Employed

Position/Title/Type of Business

Business Phone (incl. area code)

Name & Address of Employer

Dates (from-to)

Self Employed

Monthly Income $ Position/Title/Type of Business

Name & Address of Employer

Position/Title/Type of Business

Business Phone (incl. area code)

Name & Address of Employer

Dates (from-to)

Self Employed

Name & Address of Employer

Business Phone (incl. area code)

Self Employed

Position/Title/Type of Business

Business Phone (incl. area code)

Name & Address of Employer

Dates (from-to)

Self Employed

Monthly Income $ Position/Title/Type of Business

Dates (from-to)

Monthly Income $

Monthly Income $ Position/Title/Type of Business

Dates (from-to)

Monthly Income $

Business Phone (incl. area code)

Self Employed

Dates (from-to)

Monthly Income $

Business Phone (incl. area code)

Position/Title/Type of Business

Business Phone (incl. area code)

V. MONTHLY INCOME AND COMBINED HOUSING EXPENSE INFORMATION Gross Monthly Income Base Empl. Income*

Borrower $

2,666.67

Co-Borrower $

Total $

2,666.67

Combined Monthly Housing Expense Rent

Present $

Proposed

1,500.00

Overtime

First Mortgage (P&I)

1,895.00

Bonuses

Other Financing (P&I)

1,000.00

Commissions

Hazard Insurance

250.00

Dividends/Interest

Real Estate Taxes

400.00

Net Rental Income

Mortgage Insurance

Other (before completing, see the notice in "describe other income," below)

Homeowner Assn. Dues

Total *

151.00

Other: $

2,666.67

Total

5,196.00

Self Employed Borrower(s) may be required to provide additional documentation such as tax returns and financial statements.

Describe Other Income

Notice: Alimony, child support, or separate maintenance income need not be revealed if the Borrower (B) or Co-Borrower (C) does not choose to have it considered for repaying this loan.

B/C

B B

Monthly Amount $

Taxes Child Support

Fannie Mae Form 1003 07/05 CALYX Form Loanapp2.frm 09/05

Page 2 of 5

Borrower Co-Borrower

Freddie Mac Form 65

07/05

VI. ASSETS AND LIABILITIES This Statement and any applicable supporting schedules may be completed jointly by both married and unmarried Co-borrowers if their assets and liabilities are sufficiently joined so that the Statement can be meaningfully and fairly presented on a combined basis; otherwise, separate Statements and Schedules are required. If the Co-Borrower section was completed about a non-applicant spouse or other person, this Statement and supporting schedules must be completed by that spouse or other person also. Completed Jointly Not Jointly

ASSETS Description Cash deposit toward purchase held by:

Cash or Market Value

Liabilities and Pledged Assets. List the creditor's name, address and account number for all outstanding debts, including automobile loans, revolving charge accounts, real estate loans, alimony, child support, stock pledges, etc. Use continuation sheet, if necessary. Indicate by (*) those liabilities which will be satisfied upon sale of real estate owned or upon refinancing of the subject property.

Monthly Payment & Months Left to Pay $ Payment/Months

LIABILITIES List checking and savings accounts below

Name and address of Company

Name and address of Bank, S&L, or Credit Union

CWBC "First Mtg"

Merril Lynch "Stock Account"

Acct. no. 9999999 $ 577,013 Name and address of Bank, S&L, or Credit Union

Unpaid Balance $

242,000

((1,895)) /341

Acct. no. 9999999999999999 Name and address of Company

$ Payment/Months

CWBC "2nd Mtg"

Merril Lynch "Pension" Husband

Acct. no. 99999999 $ 1,117,123 Name and address of Bank, S&L, or Credit Union

110,000

(1,000) /110

Acct. no. 222222222222222222 Name and address of Company

$ Payment/Months

Mercedees "Jane's"

Wachovia Savings Acct. no. 33333333333333333333 Name and address of Company Acct. no. 9999999 Stocks & Bonds (Company name/number description)

7,500

Toyota "Hsband's"

Acct. no. 4444444444444444444444 Name and address of Company Life insurance net cash value

15,100

450 /33 $ Payment/Months

22,500

500 $ Payment/Months

Amex "Husband's"

Face amount: $ Subtotal Liquid Assets

Real estate owned (enter market value $ from schedule of real estate owned)

1,707,886 1,000,000

$ Payment/Months

Net worth of business(es) owned (attach financial statement) Automobiles owned (make and year)

$ $

Acct. no. 666666666666666 Alimony/Child Support/Separate Maintenance Payments Owed to:

Other Assets (itemize)

Job-Related Expense (child care, union dues, etc.) $

Total Monthly Payments $

2,707,886

Net Worth (a minus b)

$ $

9,573

Total Liabilities b.

2,317,036

Schedule of Real Estate Owned (if additional properties are owned, use continuation sheet)

Property Address (enter S if sold, PS if pending sale or R if rental being held for income)

Type of Property

345 Mian St Bay City, TX

SFR

Present Amount of Gross Market Value Mortgages & Liens Rental Income

CWBC 1st and 2nd $ 1,000,000 $

Totals

Future Living Expenses

Vested interest in retirement fund

Total Assets a.

1,250

0 /O

Acct. no. 5555555555555 Name and address of Company

$ 1,000,000 $

Mortgage Payments

390,850

Insurance, Maintenance, Net Taxes & Misc. Rental Income

362,000

2,895 $

801 $

362,000

2,895 $

801 $

List any additional names under which credit has previously been received and indicate appropriate creditor name(s) and account number(s):

Alternate Name

Fannie Mae Form 1003 07/05 CALYX Form Loanapp3.frm 09/05

Creditor Name

Page 3 of 5

Account Number

Borrower Co-Borrower

Freddie Mac Form 65

07/05

Continuation Sheet/Residential Loan Application Use this continuation sheet if you need more space to complete the Residential Loan Application. Mark B for Borrower or C for Co-Borrower.

Borrower:

Agency Case Number:

Jane Doe Divorce Co-Borrower:

Lender Case Number:

VI. ASSETS

ASSETS

Cash or Market Value

Name and address of Bank, S&L, or Credit Union

Wachovia Checking

AND

LIABILITIES

Name and address of Company

Monthly Payment & Months Left to Pay

$ Payt./Mos.

Unpaid Balance

Utilities

Acct. no. 9999999 $ 6,250 Acct. No. 777777777777777777 Name and address of Company Name and address of Bank, S&L, or Credit Union

450 $ Payt./Mos.

Telephone Service

Acct. no. $ Name and address of Bank, S&L, or Credit Union

Acct. No. 888888888888888 Name and address of Company

150 $ Payt./Mos.

Groceries

Acct. no. $ Name and address of Bank, S&L, or Credit Union

Acct. No. 9999999999999000 Name and address of Company

1,000 $ Payt./Mos.

Clothing

Acct. no. $ Name and address of Bank, S&L, or Credit Union

Acct. No. 11111111111111111 Name and address of Company

1,000 $ Payt./Mos.

Gas

Acct. no. $ Name and address of Bank, S&L, or Credit Union

Acct. No. 12222222222222222 Name and address of Company

450 $ Payt./Mos.

Family Entertainment & Childrens Activities

Acct. no. $ Name and address of Bank, S&L, or Credit Union

Acct. No. 1333333333333333333333 Name and address of Company

800 $ Payt./Mos.

Personal Grooming

Acct. no.

Acct. No. 1444444444444444444444

150

I/We fully understand that it is a Federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements concerning any of the above facts as applicable under the provisions of Title 18, United States Code, Section 1001, et seq. Borrower's Signature:

X Fannie Mae Form 1003 07/05 CALYX Form 1003 Lnap5ast.frm 9/05

Date

Co-Borrower's Signature:

Date

X Freddie Mac Form 65 Page 5 of 5

07/05

Continuation Sheet/Residential Loan Application Use this continuation sheet if you need more space to complete the Residential Loan Application. Mark B for Borrower or C for Co-Borrower.

Borrower:

Agency Case Number:

Jane Doe Divorce Co-Borrower:

Lender Case Number:

VI. ASSETS

ASSETS

AND

Cash or Market Value

Name and address of Bank, S&L, or Credit Union

LIABILITIES

Name and address of Company

Monthly Payment & Months Left to Pay

$ Payt./Mos.

Unpaid Balance

Dry Cleaning

Acct. no. $ Name and address of Bank, S&L, or Credit Union

Acct. No. 155555555555555555 Name and address of Company

90 $ Payt./Mos.

School Tuition "Broken out over 12 months" Negotiate as husbands expense. Acct. no. $ Name and address of Bank, S&L, or Credit Union

Acct. No. 1666666666666666666 Name and address of Company

3,333 $ Payt./Mos.

Medical Insurance

Acct. no. $ Name and address of Bank, S&L, or Credit Union

Acct. No. 1777777777777777 Name and address of Company

0 $ Payt./Mos.

$ Payt./Mos.

Life Insurance Coverage "Husband" 1,000,000 Coverage 10 Year Term (After 10 Years use Declining Term Coverage) Acct. no. $ Name and address of Bank, S&L, or Credit Union

Acct. No. 1888888888888888888 Name and address of Company

Monthly Savings

Acct. no. $ Name and address of Bank, S&L, or Credit Union

Acct. No. 1899999999999999999 Name and address of Company

1,000/0 $ Payt./Mos.

Auto Insurance

Acct. no. $ Name and address of Bank, S&L, or Credit Union

Acct. No. Name and address of Company

Acct. no.

Acct. No.

200 $ Payt./Mos.

X Fannie Mae Form 1003 07/05 CALYX Form 1003 Lnap5ast.frm 9/05

Date

Co-Borrower's Signature:

Date

X Freddie Mac Form 65 Page 5 of 5

07/05

Prospect Summary

File No. Divorce, Jane

I. Prospect Information Borrower Name

Jane Doe Divorce

Birthday Co-Borrower Name

999-99-9999

SSN

Cell / Alt # 561-555-1212

E-Mail

12/30/1963

561-999-1212

Fax #

E-Mail

SSN

H Phone #

Cell / Alt #

B Phone #

Birthday Present Address

H Phone # B Phone #

Fax #

345 Main St.

Personal Interests

Bay City, TX

Children's Info.

II. Property Information Property Address

Occupancy Status

Primary Residence

Sales Price

Second Home

Down Payment/Equity

Investment Property

Appraised Value

300,000 50.000 % / 150,000

III. Mortgage Information Note Information

Lien Position

Loan Amount

150,000

Note Rate Term (in months)

6.500 %

First Second

Post Divorce plan Total Debt obligations are 88% of Income. This is critical to the stability of Jane's future as a single parent.

Due (in months)

360 360

Loan Program:

30 Year Fixed Conv.

Monthly Payment

948.10

Loan Rep:

Curtis McNeill

IV. Underwriting Information Qualifying Ratios Primary Housing Expense/Income Total Obligations/Income

Loan-to-Value Ratios 14.791 % 87.909 %

LTV Total LTV

Total Income

50.000 % 50.000 %

10,466.67

Total House Exp

1,548.10

Other Payments

7,653.00

V. Contact Information Contact Date

Time

Memo

Source: Comments:

Total Cost Analysis The purpose of the Total Cost Analysis is to express your future cost of home ownership through either the purchase of a new home or the refinancing of the existing marital residence conveyed in PITI (Principal, Interest, Taxes & Insurance).Additionally, this form demonstrates the investment of divorce proceeds articulated using the Time Value of Money Calculation. We attempt in this analysis to demonstrate up to four financing options showing different loan amounts by altering the amount of money put into the purchase/refinance and thus off setting the amount ultimately invested outside of the residence. Please remember that at the time of your review the examples shown are for budgeting purposes only and do not constitute loan approvals or your plannerâ&#x20AC;&#x2122;s final considerations on affordability. This plan is to be utilized as a blueprint for negotiations between you, your attorney and your spouse and or their representative. Upon conclusion of discussions with all parties your planner will analyze the proposed and make final conclusions.

Blueprint M&D Planning 1420 Cypress Creek Rd. Ste 200-191 Cedar Park, TX 78613 Tel (512) 335-6601 x 1 curtis@blueprintmtg.com Fax (866) 378-6983 www.blueprintmtg.com Prepared For:

TOTAL COST ANALYSIS Prepared by Curtis McNeill October 25, 2008

Jane Doe Divorce

S U M M A RY

SUMMARY

1ST MTG.

Program Name Loan Amount Interest Rate Term (months) Payment Mtg. Ins.

$150,000 6% 360 $899 $0

$210,000 6% 360 $1,259 $0

$240,000 6% 360 $1,439 $0

$0 0% 0 $0 $0

Monthly Pmt.

Current value $300,000, appreciation assumption 3%

Net Savings

60 MONTHS ANALYSIS

T OT AL COST AN AL YSIS

TOTAL COST ANALYSIS

Program Name Total Payment Principal Paid Int & MI Paid Balance Left Closing & Points

$53,960 $10,418 $43,541 $139,582 $0

$75,543 $14,586 $60,958 $195,414 $0

$86,335 $16,670 $69,666 $223,330 $0

$0 $0 $0 $0 $0

M OR T GA GE P L A N W I T H A S S E T A CCU M U L ATION

5 YEARS 10 YEARS

Opening Balance Monthly Amount Rate of Return

$0 $0 0%

Home Value Loan Balance Equity

$300,000 $139,582 $160,418

$300,000 $195,414 $104,586

$300,000 $223,330 $76,670

$0 $0 $0

$300,000 $125,529 $174,471

$300,000 $175,740 $124,260

$300,000 $200,846 $99,154

One of the most important metrics to consider when selecting the right Mortgage Plan for you, is how long you plan on living in the home or what is your loan retention time going to be. The table on the left compares the true total cost of each mortgage plan based on a pre determined comparison period.

MORTGAGE PLAN WITH ASSET ACCUMULATION

Program Name

Home Value Loan Balance Equity

This Section overviews your monthly payments for each prospective Mortgage Plan. Please note, the payments shown do not include any Escrows that may be collected with your payment.

$0 $0 $0

This Mortgage Plan is designed to help you make an informed decision on a mortgage integrated with your overall financial plan. This example displays an estimated Real Estate value combined with potential investment account growth.

Based on the 2 metrics listed above, the Mortgage Plan in column titled 'Program 1' has the potential to create the most wealth in 5 yrs.

Based on the 2 metrics listed above, the Mortgage Plan in column titled 'Program 1' has the potential to create the most wealth in 10 yrs.

NOTICE AND DISCLAIMER : The results above are based on (i) information provided by you, (ii) estimates of interest rates, your ability to save, your tax bracket, closing costs and other amounts, (iii) currently available loan programs and (iv) information and assumptions discussed with your advisor; all of which might change over time. If the information or assumptions are not correct or change, then the results above will change. Your advisor will provide additional information about costs, fees and other information required by state and federal law.

Blueprint M&D Planning 1420 Cypress Creek Rd. Ste 200-191 Cedar Park, TX 78613 Tel (512) 335-6601 x 1 curtis@blueprintmtg.com Fax (866) 378-6983 www.blueprintmtg.com Prepared For:

TOTAL COST ANALYSIS Prepared by Curtis McNeill October 25, 2008

Jane Doe Divorce

Value Equity (%)

Program 1 1st Mtg 2nd Mtg $300,000 50.000 %

$300,000 30.000 %

Program 3 1st Mtg 2nd Mtg $300,000 20.000 %

Loan Amount Loan Type Interest Rate Term Closing Points APR

$150,000 Fixed 6.000 % 360 $0 0.000 % 6.000 %

$210,000 Fixed 6.000 % 360 $0 0.000 % 6.000 %

$240,000 Fixed 6.000 % 360 $0 0.000 % 6.000 %

$0 Fixed 0.000 % 360 $0 0.000 % 0.000 %

$899 $0 $899

$1,259 $0

$0 $0

$1,259

$1,439 $0 $1,439

$0 $50 $625 $0

$0 $70 $625 $0

$0 $80 $625 $0

$0 $0 $0 $0

$1,574 N/A $1,574

$1,954

N/A

$1,954

$2,144 N/A $2,144

$0 0.000 % $0

Principal & Int. Mtg. Ins.

Total P&I

Program 2 1st Mtg 2nd Mtg

Program 4 1st Mtg 2nd Mtg $0 100.000 %

Index Margin LifeCap Scenario First Adj Cap First Adj Mos Adj Cap Adj Month HOA Haz Ins. Prop Taxes Other

Pymt. Adjust. Adj Cap % Adj Cap (Mos) Recast Prd/Stop Max Balance

PITI Term Reduction

Total PITI Mo. Asset Accu. Asset Accum. Int. Rate Asset Accum. Open

N/A

$0 $0

Equity Repositioning Analysis The ERA or otherwise known as the Debt Repositioning Analysis (DRA) is utilized to demonstrate the paying off or redistribution of joint debt to your spouse and its impact on your cost of living. Additionally, this analysis may illustrate a recommended financing structure for the existing marital residence, if to be kept by the client, or a proposed mortgage structure for a new home purchase demonstrating the projected future value of the home and the subsequent tax benefits. Lastly, this analysis provides an asset accumulation study combining the future value of invested divorce proceeds with the future value of real estate. The DRA makes no guarantees of rates of returns on invested assets and or future real estate values, but rather attempts to illustrate how the reduction of debt improves and reduces the clients costs of living and affords the client the opportunity to grow their assets through proper investment strategies and allocations.

Blueprint M&D Plannin 1420 Cypress Creek Rd. Ste 200-191 Cedar Park, TX 78613 Tel (512) 335-6601 x 1 curtis@blueprintmtg.com Fax (866) 378-6983 www.blueprintmtg.com

DEBT CONSOLIDATION ANALYSIS Prepared by Curtis McNeill November 16, 2008

Jane Doe Divorce

Prepared For:

CUR R EN T DEBT ST R UCTURE

Type

Creditor

Rate

Balance

Payment

Tax Ded.

Debt Free (in yrs.)

Installment Installment

Mercedees Toyota

0.00 % 0.00 %

$15,100 $22,500

$450 $500

$0 $0

2.83 yrs 3.75 yrs

0.00 %

$37,600

$950

Total (Paid Off Items)

Your current total debt is $37,600 resulting in monthly payments of $950

RECOMMEND ED D EBT ST R U CTURE Program 1

360

6.50 %

PAYMEN T COMPAR ISON Current $950 Proposed $948

$150,000

T AX BEN EFIT S Current Proposed

$948

SAVIN G ALLOCAT ION Remaining Debt $0 Mortgage PrePayment $0 Asset Accumulation $0

$0 $0 $0

REMAINING CONSUMER D EBT

Creditor

Balance

PrePayment

New PayOff

Interest Saved

W IT H ASSET ACCU MU LAT ION AN D T ER M R ED U CT ION STRATEGY

5 10 20

$0 $0 $0

Opening Bal.

Monthly Amnt

Rate of Rtrn.

0.00 %

NOT ES

The comparison above, overviews your current debt structure vs. a new proposed debt structure. In most cases, small changes to your debt can save thousands over the life of your loan. If you have any questions at all regarding this analysis, please contact us.

Rent Versus Own The purpose of this analysis is to enable the client to make a highly educated and enlightened decision about their ability to purchase and maintain a home post divorce and to determine if there will be any short-term gains by doing so. The analysis is always based on the plannerâ&#x20AC;&#x2122;s best information available and errs on the side of conservative and caution. Additionally, rental rates and home costs are a factor of what the client has expressed as their needs in total square footage, number of bedrooms and any an all special requirements.

Blueprint M&D Planning 1420 Cypress Creek Rd. Ste 200-191 Cedar Park, TX 78613 Tel (512) 335-6601 x 1 curtis@blueprintmtg.com Fax (866) 378-6983 www.blueprintmtg.com Prepared For:

RENT VS OWN Prepared by Curtis McNeill October 28, 2008

Jane Doe Divorce

MONTHLY ANALYSIS

M ON T H L Y H OM E OW N E R S H IP A N A LYSIS Payment Taxes, Insurance & Other Total Payment Tax Benefit Principal Paid

$1,500 $20 $1,520 $0 $0

$899 $681 $1,581 $344 $149

Rent Assumptions Rental Increase/yr:

Ownership Assumptions 3.00 %

Appreciation: Tax Bracket: Purchase Price: Interest Rate: APR: Down Payment: Closing Costs: Total Cash to Close:

3.00 % * 25.00 % $300,000 6.00 % 6.00 % $150,000 $0 $150,000

This analysis was designed to display the benefit opportunity of homeownership. The rent column shows the amount of rent you are currently paying and the homeownership column reflects the proposed purchase of a new home. Net Cost of Home Ownership is $1,088/mo. The net monthly cost number reflects the actual cost of owning after considering the tax deduction and backing out the principal portion of your payment.

60 MONTHS ANALYSIS

36 MONTHS ANALYSIS

OW N E R S H I P A N A L YSIS

Total Payment Principal Paid Tax Benefit

$56,356 $0 $0

$56,901 $5,874 $12,250

Real Estate Value Loan Balance

$0 $0

$300,000 $144,126

Total Payment Principal Paid Tax Benefit

$96,764 $0 $0

$94,835 $10,418 $20,260

Real Estate Value Loan Balance

$0 $0

$300,000 $139,582

The benefits of homeownership can be seen over time. The tables in this analysis reflect the cost savings as well as the equity you will build based on principal reduction and appreciation rates of your property.

OVERALL

Rent Investment Assumptions Total Investment in 36 Months Total Investment in 60 Months

$0 $0

Opening Balance: Monthly Amount: Return Average:

$0 $0 0.00 %

Ownership Investment Assumptions Opening Balance: Monthly Amount: Return Average:

By 5 yrs, Your asset account By 5 yrs, your home's equity is is $0. $160,418. Your asset account is $0. Your TOTAL NET WORTH will reach $160,418.

$0 $0 0.00 %

After 60 months, you will be $160,418 wealthier as a homeowner.

“What you need to know about your mortgage, credit & estate when getting divorced” By: Jonathan Klein, CMPS So you have either made the decision to get divorced mutually or you or your spouse has petitioned for it, so what do you do now? First you must protect yourself and this means your credit, assets and home equity. Most people, going through a divorce, immediately concentrate on the assets, but few even consider the impact on their credit and the equity they have trapped in their home. This paper will give you a step by step process to protect both. Your first step is to request that your attorney negotiate with your spouse’s counsel to allow a home equity line of credit to be taken on the marital residence and pay yours and your spouse’s legal fees from this line. I have seen to many divorces that linger on and the parties run out of cash to continue to pay their legal fees. By the time they have come to grips with their predicament their credit cards are maxed and their credit scores are too low to refinance their existing mortgage leaving all their home equity trapped and forcing them to sell the marital residence from a position of weakness. This in not a position you want to be in! Next, cancel all joint credit cards and open new lines of credit in your name only. Make sure that the previous accounts have your new address including your mortgage company, and that the invoices come to you to ensure that they are paid in full. Your attorney will negotiate with your spouse’s counsel on the exact split of this debt, but for now it is important that you remain on top of open account balances and insure they are paid on time. You can not afford to have late payments reporting on your credit especially if you intend to purchase a home of your own when your divorce is complete. Place a Fraud Alert on your credit file by calling one of the three credit repositories. Once you file an alert with one repository they notify the other two on your behalf. This alert will not only make it difficult for identity thieves to steel your personal information, but it will also complicate a vengeful spouse’s attempt at opening credit in your name without your knowledge. While requesting the fraud alert I suggest that you enroll in one of the repositories credit protection subscriptions. For a nominal annual fee you will be notified when your credit file is accessed, account balances change by a given percentage or new accounts have been opened. If you are going through a truly contentious divorce and your spouse is particularly bitter then I suggest forgoing the Fraud Alert and request a Credit Freeze. This will stop everyone, for the exception of government agencies, from accessing your credit profile. If you think that this couldn’t happen then I will share a story. I had a client, a doctor, going through a terrible divorce. Once the divorce was settled he went to purchase a new home and had his credit report pulled. On the report was a credit card he did not recognize with a balance of $60,000.00 plus dollars. Yes, his former wife applied for a credit card in his name, charged it up, paid the minimum

payment till after the divorce and left my client with the balance to pay. It definitely happens! Should we sell the home or should I give it to my former spouse? IN RETROSPECT, my client Sandra shouldn't have let her ex-husband keep the house. When Sandra and her husband divorced in June 2005, they decided he would continue living there with their daughter. The plan was for him to refinance the property within 90 days of the divorce and become the sole debtor on the mortgage. That never happened and now the mortgage payments have been late or not sent at all, and the house is in foreclosure. The result: Sandraâ&#x20AC;&#x2122;s credit is in shambles. Sandra now lives with a friend and can't take on a mortgage of her own, because she is still the primary holder on the existing loan. Sandraâ&#x20AC;&#x2122;s Credit was impeccable, but what her husband was responsible for, with Sandra as the cosigner, has ruined all her good credit history. What Sandra should have done is have her ex-husband, prior to the divorce being final, apply for a mortgage in his name solely, secure a commitment for this loan and then close on the new loan simultaneously to endorsing the divorce documents. This would have ensured several things: 1) Sandra would have known early on if her former spouse could secure a loan based on his credit and income alone and thus relieve her responsibility of the debt or 2) That the husband could not secure a loan and the property could be listed for sale. Either way Sandra would no longer have responsibility for the debt, she would receive her share of the property equity and her credit would be secure. Fact is, even if the divorce decree spells out clearly who is responsible for what after the divorce the decree doesn't override the original contract with the creditor. Creditors will go after both parties, with equal vigor, just as if they weren't divorced. How does alimony and child support affect your mortgage? Critically! When you apply for a mortgage or if you are keeping the marital residence and have to refinance the existing loan these two costs or sources of income will be used to qualify you for your future financing. Lenders are going to ask to see the settlement agreement or temporary support documents to determine how much of a loan you can afford and if you are paying alimony, child support or both these will likely reduce the loan amount you qualify for. If you are on the receiving end of this support lenders will want to ensure that you will receive this support for at least another three years and that you have been in receipt of these payments for at least the last three months. This point is imperative: I suggest that all support payments be paid to the court and in turn the court will funnel those payments to the recipient. Additionally, it is important to establish a separate account solely for receipt of these payments to simplify evidencing receipt of support to future creditors as well as accounting for year end purposes. If you are the party having to pay the support make sure that the settlement agreement spells out the date the payments begin and end and the age and birthdates of minor children. Divorce also forces you to review your estate plan especially if there are children involved. Part of this plan also includes the creation or continued funding of college

tuition plans. First, review any life insurance policies you may have and change the beneficiary from your spouse to either your next of kin or in the case of minor children to a guardian in trust for the children. Changing the beneficiary may be more involved, legally, if your insurance policy has a cash value because this value may be considered marital assets. If neither spouse has insurance and there are minor children, it is a good policy to require both parties to have insurance in place with the minor children as the beneficiary with a trustee. It would also be prudent to have an Estate Attorney create a Pour-Over-Will that flows into a Revocable Living Trust and assign a trustee to administer the will and trust. Proper estate planning is critical to protect your loved ones from having to go through probate and risk the loss of critical assets for young children. Qualified tuition plans, if not currently established, should be created on behalf of the children and be guaranteed to continue to be funded or funded as part of the divorce decree. In many divorces one spouse will take the children as an income deduction. This deduction, for proper college planning, should be claimed by the spouse with the least income to maximize future financial aid for college tuition. It is also advisable when starting a qualified tuition plan that the plan owner be grandparent and not the parent. When your child applies to college they will automatically complete a FAFSA; application for student aid. This application requires the parent claiming the child on their income taxes to reveal all of their income and assets. A qualified tuition plan is considered a parental asset even though it is for the childâ&#x20AC;&#x2122;s education and thus reduces the childâ&#x20AC;&#x2122;s overall aid, but by having a grandparent as the owner of the qualified tuition plan the asset does not have to be revealed and the grandparent suffers no gift tax consequences. For more information or a confidential appointment you may contact Jonathan Klein at (561) 477-1136 or jonathanklein@associateshomemortgage.com.

"What is the Equitable Distribution Law, and how does it work?" Once a divorce is granted, the Equitable Distribution Law requires a winding up of the economic affairs of the marriage through equitable distribution of the marital property. The Equitable Distribution Law is applicable to all marital actions after July 19, 1980. The premise underlying the Equitable Distribution Law is that marriage is, among other things, an "economic partnership" to which both parties contribute as spouse, parent, wage earner, and/or homemaker. The process of equitable distribution has three parts: 1) categorizing property as marital or separate; 2) evaluating the property and; 3) distribution. How property is held or titled is no longer relevant to how it will be distributed upon divorce. What is important with regard to distribution of property is the date that a particular item of property was acquired and the source of funds used to acquire it. Marital property is defined as all property acquired by either or both spouses during the marriage from the date of the marriage through the commencement of a matrimonial action or the execution of a separation agreement, regardless of the form in which title is held. Courts generally interpret the term "marital property" broadly, so as to increase the size of the marital estate subject to equitable distribution and to effectuate the policy behind the Equitable Distribution Law. While the term "equitable distribution" does not dictate "equal" distribution of marital assets, courts are generally distributing property on an equal basis between spouses in marriage of long duration in which there are children. Separate property is an exception to marital property and is defined as follows: a. Property acquired before marriage or property acquired by bequest, devise, descent, or gift from a person other than your spouse; b. Compensation for personal injuries; c. Property acquired in exchange for or the increase in value of separate property, except to the extent that such appreciation is due in part to the contributions or efforts of the other spouse; or d. Property described as separate property by a written agreement of the parties. Separate property can be considered marital property if it has been co-mingled with marital assets or if it has appreciated in value during the marriage due to the efforts of the spouses. Under the Equitable Distribution Law, both parties to the divorce are required to disclose their respective financial circumstances so that the court will be in the best position to determine the most fair and equitable distribution of marital property, as well as appropriate levels of support and maintenance. To ensure this financial disclosure, the law requires that the parties exchange sworn Statements of Net Worth, which must be accompanied by a current and representative paycheck stub and the most recently filed State and Federal income tax returns. If a party to the divorce fails to comply with this mandatory financial disclosure, they may be subject to penalties or sanctions ordered by the court. Once a divorce has been granted, the court determines how the marital property will be equitably distributed in accordance with thirteen enumerated factors under the law. They are as follows:

1. The income and property of each party at the time of marriage, and at the time of the commencement of the action;

2. The duration of the marriage and the age and health of both parties; 3. The need of a custodial parent to occupy or own the marital residence and to use or own

its household effects; 4. The loss of inheritance and pension rights upon dissolution of the marriage as of the date of dissolution; 5. Any award of maintenance; 6. Any equitable claim to, interest in, or direct or indirect contribution made to the acquisition of such marital property by the party not having title, including joint efforts or expenditures and contributions and services as a spouse, parent, wage earner and homemaker, and to the career or career potential of the other party; 7. The liquid or non-liquid character of all marital property; 8. The probable future financial circumstances of each party; 9. The impossibility of evaluating any component, asset, or any interest in a business, corporation, or profession, and the economic desirability of retaining such asset or interest intact and free from any claim or interference by the other party; 10. The tax consequences to each party; 11. The wasteful dissipation of assets by either spouse; 12. Any transfer or encumbrance made in contemplation of a matrimonial action without fair consideration; 13. Any other factor which the court shall expressly find to be just and proper. SOME PROBLEM AREAS IN VALUATION OF MARITAL PROPERTY Spousal Contribution to the Acquisition of Marital Property or Increase in Value of Separate Property: Section 236 8(d) (6) of the Domestic Relations Law reads: "...Any equitable claim to, interest in, or direct or indirect contribution made to the acquisition of such marital property by the party not having title, including joint efforts or expenditures and contributions and services as a spouse, parent, wage earner, and homemaker, to the career or career potential of the party..." Spousal contribution is a particularly important area for women (especially homemakers) because they tend to underestimate their economic contribution to the marriage, as well as what their financial needs will be once the marriage has ended. Statistics show that the standard of living for women decreases dramatically (bringing many women and their children below the poverty level) after divorce, while the standard of living for divorced men increases. An elaboration and enumeration that a woman's efforts, expenditures, contributions, and services as a spouse, parent, wage earner, and homemaker made to the acquisition of marital property and to their spouse's career or career potential and/or their loss of career or career potential because of their devotion to home and family is essential to a determination of how marital property will be equitably distributed. Such contribution and efforts may range from supporting a spouse in professional school, entertaining friends and business associates, patients, etc. at home, to being primary child-care provider. Each case is unique, and the spousal contribution must be determined based on the particular facts. Determining the Value of Professional Licenses, Professional Distinctions and Honors, and Businesses: Under New York Law (but not most other states), the profession or professional career potential of one spouse is considered marital property. While initially applied to a medical license, courts in New York have extended the principle to other careers requiring licenses or the development of expertise. Where it is difficult to determine the actual interest involved, the court will make a monetary distributive award.

The value of a license is the enhanced earning capacity it provides. This value is determined by the present value (average annual earnings with license minus average annual earnings without license) multiplied by the number of years remaining in worklife, multiplied by the projected wage increases. Where a spouse is actually receiving a salary, then the enhanced earning capacity is based on the actual earnings rather than statistical earnings for the profession. Professional honors have been valued in the same way as licenses to the extent that they provide a provable enhanced earning capacity and the spouse not in possession of the honor contributed to its attainment. In cases where a professional does not put his or her license to its "best use" -- i.e. realize the enhanced earning potential that the license would provide -- the court will have to determine whether or not to value the license as if the full earning potential were being realized based on the particular facts of the situation. Valuation of Businesses: No single approach to the valuation of businesses is mandated by the courts. The value of a corporation (including, but not limited to, professional corporations) can be calculated in several ways depending upon the facts in the situation. Factors that should be considered include: nature of the business; general economic outlook; book value of stock/financial condition of business; earning capacity of the company; dividend paying capacity; goodwill/intangible value; sales of stock/size of block of stock to be valued; market price of similar corporations. Three accepted methods for the valuation of businesses include: 1) asset valuation (assets minus liabilities); 2) capitalization of earnings (multiplying true pre-tax earnings-derived by adjusting net income to account for personal expenses) by a capitalization factor derived after considering risk, past performance, future history and nature of the business; 3) excess earnings: net income is adjusted for personal items, unusual or nonbusiness items, unreported income, or deposits, credit is given for reasonable compensation and taxes, and the net excess earnings are then averaged and capitalized to arrive at goodwill. Goodwill plus tangible assets will give the fair market value. DISTRIBUTION OF ASSETS Depending upon the marital assets involved and the financial position of the parties, courts will apply various methods to the distribution of marital property. A one-time settlement may be ordered, or payments over a period of years upon the sale or disposition of various assets. Courts will be mindful of such issues as tax consequences in determining how marital property will be distributed. Each case is unique and will depend upon the circumstances of the parties involved.

Your Goals + Our Advice = Total Strategy About Curtis McNeill In 1996, after eight years of milit ary training and a college education, I chose to make Central Texas my home. The next step was finding the right person to share my life with and then to find a career that I could get excited about. Today I am living the life I used to only dream about, happily married with three amazing children, I count my many blessing each day. In 2001, I gave up the corporate security blanket and chose Freedom, making a living for my family as a mortgage planner. And in April 2007, my wife and I stepped out on faith and founded Blueprint M&D Planning. Blueprint is a culmination of years of commitment to my craft, excellence and being significant in the lives of my family, friends, clients and partners. “Man is the only animal that laughs and weeps; for he is the only animal that is struck with the difference between what things are, and what they ought to be.” William Hazlitt

Blueprint M&D Planning Curtis McNeill, Certiﬁed Mortgage and Divorce Planner p 512-335-6601 f 866-378-6983 curtis@blueprintmtg.com www.blueprintmtg.com State and local laws prohibit discrimination on other bases, which might include sexual orientation, age, marital status, veteran status, income source and others. All such discrimination violates the rules of this site. Ads must not include any discriminatory statement or image.

What is Divorce Planning and how does it differ from Divorce Financial Planning? When you meet with a new client you know how quickly the concerns become related to finances. Divorce Planning helps clients and their attorneys ensure they are seeking a settlement based on an established plan that represents the client’s goals and the planner’s recommendations and leaves the client, after the divorce, fiscally intact avoiding common but costly financial mistakes and omissions. Divorce Planning differs from Divorce Financial Planning in its focus on early planning intervention as opposed to planning for ones financial future after the divorce is finalized and its focus on the client’s whole life as opposed to just the investment aspects. Certified Divorce Planning Professionals use the acronym C.R.A.D.L.E to illustrate their approach to divorce planning. It stands for; credit, resolve, asset, dependents, life and estate and highlights our holistic approach to planning. How can a Certified Divorce Planning Professional help? A Certified Divorce Planning Professional can help you and your client: • • • • • • • •

Understand what life will look like financially after the divorce Determine if the client can or should maintain their home during and after their divorce Avoid unexpected future tax liabilities from assets they receive in their settlement as well as being victimized by a former spouses illegal or erroneous tax return Avoid unknowingly giving away valuable retirement and benefit options Base the client’s decisions on objective, accurate numbers and not emotion Protecting the client’s credit by canceling joint accounts, establishing new credit and locking their credit file to fraud. Protect their dependents future with proper insurance and college planning Create or revise an estate plan

We offer the following services to Divorcing Clients and Family Law Attorneys: • • • • • • •

Pre-Divorce Financial Counseling and Planning Equitable Settlement Solutions Future Value and Income Projections Pension and Spousal Benefits Valuation Tax return audits for last three tax years Estate Planning Mortgage solutions

About Curtis McNeill

Blueprint M&D Planning Curtis McNeill, CertiďŹ ed Mortgage and Divorce Planner p 512-335-6601 f 866-378-6983 curtis@blueprintmtg.com www.blueprintmtg.com