One of the most contentious issues in a divorce involves money. How much has there been for the family? How will it be divided so the same amount can be used to support two households instead of one? How will the assets be divided? A financial expert can answer these questions.
Issues a Financial Professional Can Help Solve
In Mediation or a Collaborative Divorce, the couple uses a neutral joint financial specialist as part of the team. This saves money from traditional litigation where each spouse pays separately for their own financial analyst.
Issues that the financial professional helps the couple decide include:
- Looking at tax returns and all financial records so each spouse can have a clear understanding of all money matters.
- Identifying community property.
- Tracing of separate property.
- Analyzing the marital standard of living.
- Determine the financial needs of each spouse.
- Determine the support needs of the children.
- Guidance as to what each spouses’ post-divorce budget will look like.
The divorce financial specialist in a collaborative divorce is always neutral and does not take sides. Suggestions may be given, but ultimately, the parties decide what’s best for them.
Benefits of Having a Neutral Financial Professional as Part of the Divorce Team
There are several benefits to having this professional as part of the divorce team.
- They will explain to both spouses the tax implications of checking, savings, and retirement accounts.
- Stress and anxiety are reduced since the financial professional is helping the couple prepare separate budgets and will help them to see their financial future in a positive and constructive way.
- The couple has a better understanding of each other’s needs and how to make the financial part of the divorce work the best way for themselves.
- The financial professional helps them to understand their future by answering questions like, “If I keep the house, what will that mean for me in 20 years?”
Divorcing couples who have used the services of a neutral financial professional during mediation or the collaborative process come away with a better understanding of their financial future. They also better understand the needs of their ex-spouse which is conducive to settlement.