Finance and Divorce
Collaborative Divorce is a relatively new model of divorce. Divorcing couples can now choose to divorce in a collaborative manner, rather than in a litigious manner. Collaborative Divorce is neither mediation nor arbitration.
It is a new way of divorcing where you seek what is right for each other with the help of a team of professionals, including two attorneys, two mental health professionals, possibly a child specialist, and one financial neutral.
By involving a financial neutral early in the process, the divorce process typically goes more smoothly. Having a financial neutral on the team enables the attorneys to focus on what they know and do best Ã¢â‚¬â€œ the law. Because the divorce process involves identifying and dividing property and income, the financial issues can be complex. ThatÃ¢â‚¬â„¢s why you want to find a financial neutral that is a trained professional, in particular, a certified financial planner who has a breadth of knowledge about the planning process.
The role of the financial neutral is to stay neutral and provide support for the whole team. They help to set a positive and productive tone for the discussion, and to make the process more efficient and cost-effective. Financial neutrals also empower individuals to make wise and workable decisions for themselves.
What will a financial neutral do for you? They will calculate the needs, post-divorce budget, ability to pay of both the husband and wife, as well as help to stabilize the financial situation during and after the divorce. They will create an inventory of all assets and liabilities, analyze various settlement scenarios (considering liquidity, growth and tax factors). They will recommend strategies to minimize costs in the division of assets. And provide advice and support about dividing retirement plans, health and insurance coverage. You will get help considering all the options before making a decision. Remember that assets of the same dollar value may not be the same!