Divorce without litigation

What is a collaborative divorce?

In a collaborative divorce, clients have the opportunity to work with specially trained professionals to help them navigate the divorce process. The team is carefully selected to meet the needs of the particular clients and resolve their issues respectfully. The clients, with the help of the team, carefully tailor the scope and nature of the work to ensure efficient use of clients' time and funds. Your Collaborative professionals will assist you in resolving difficult legal, financial, and emotional issues while reducing conflict.

What is the role of a Neutral Financial Professional in a collaborative divorce?

Divorcing couples are often unaware of the financial implications of various settlement options. The Neutral Financial Professional is a licensed Certified Financial Planner (CFP) or Certified Public Accountant (CPA) who also has been certified as a Divorce Financial Analyst who helps the couple evaluate their financial situation and develop creative solutions to complex financial problems. As a neutral, the financial professional has greater creditably in providing information and fostering a dialogue than an advocate.  This makes it easier to reach mutually satisfying agreements.

KEY AREAS TO CONSIDER:

• Supporting two households on income that previously supported one

• Sustainable budgeting

• Workable property division

• Tax issues, planning, liabilities, and funding

• Family support

• Business and pension valuations

• Real estate values and issues

• Recognizing that financial topics often involve very strong emotions

THE NEUTRAL FINANCIAL PROFESSIONAL HELPS PARTIES TO:

• Gather information about the family finances

• Get finances organized

• Identify, clarify, and prioritize financial needs, goals, and concerns

• Educate themselves about their financial situation

• Validate emotions when they arise

• Analyze income and expenses and assets and liabilities

• Develop a blueprint for the legal declarations of disclosure

• Prepare workable budgets

• Address the financial arrangements necessary to support healthy children

• Consult with additional neutral specialists when necessary

• Evaluate possible settlement options with respect to short and long term consequences

• Assess tax consequences for different scenarios

• Make informed decisions on a level playing field

• Generate creative solutions to financial problems

• Communicate with the team and clients on financial matters

• Review marital settlement agreement for accuracy as it relates to team financial discussions

What is the benefit of using a Neutral Financial Professional?

Most people who are going through a divorce want to maximize financial security and minimize depletion of assets. Some spouses turn to their own separate financial advisors who may or may not have experience and training relating to divorce in Northern Virginia. Some spouses rely on their attorneys alone and never seek the assistance of a financial specialist. If the professional (attorney or financial planner) is only working to protect their own client, the client may then become involved in an adversarial divorce with each side competing against the other for money and assets.

There is another option to engage the services of a Neutral Financial Specialist with training and experience in Collaborative Divorce work (hired to work with both the parties and their attorneys) to achieve an amicable settlement that is informed and emphasizes financial security and minimizes depletion of assets. When the parties use a Neutral Financial Specialist to collect data and prepare budgets, the work between the clients and their attorneys can be more efficient and productive (and less costly). The lawyers can focus on explanation of the law, options for resolution, evaluation and negotiation.

A Neutral Financial Specialist assists the spouses in collecting and organizing data that may be relevant and needed for a settlement. The data collection usually involves preparation of a report for the parties and their attorneys regarding the income, assets and debts. The summary may be supported by backup documentation provided by the spouses. The Neutral Financial Specialist can work with the spouses to prepare current and projected budgets in order to have an educated discussion about support.

When there are children involved, the Neutral Financial Specialist can help the spouses identify expenses and needs of the children. For many parents, the costs of post-secondary education can be a challenge and it helps to know the options for saving for that education and/or qualifying for financial aid. If there is a child with special needs, it may be critical to involve a Neutral Financial Specialist who can assist in gathering data about benefits and resources for the parents.