Financial
Experts as Collaborative Law Professionals
Some of the biggest decisions made during a divorce
involve the division of the family’s assets, liabilities, income
and expenses. Choices will impact clients’ finances for the rest
of their lives. Just as attorneys work to advise on the legal aspects
of divorce and the mental health professionals support the emotional
aspects, the financial experts bring education, knowledge, strategies
and answers in the financial and tax aspects. By using financial experts,
clients will be well-positioned to make the critical, and often irrevocable,
financial decisions required during the divorce process.
What can the Financial Experts do to help create
an optimal financial settlement?
- Provide
financial education to parties with less experience or knowledge in
this area
- Collect
and organize documents relating to the family’s assets, liabilities,
income and expenses
- Prepare
the marital balance sheet
- Prepare
future budgets
- Assess
each party’s needs post-divorce and suggest settlement options
that can accomplish them.
- Determine
which assets and liabilities are marital, and which are separate
- In cases
where marital and separate assets may have been commingled, trace
the assets to help determine what portion is marital versus separate
- Determine
the value of assets such as a business, pension, stock options, real
estate, collections or other tangible assets
- Obtain
life, disability, health, long-term care, homeowners and auto insurance
that will need to be replaced or obtained as a result of the divorce.
- Advise
on how to divide assets and liabilities in a way that meets each person’s
needs and illustrate the results of different settlement options
- Make recommendations
about alimony and child support and illustrate the results of different
options
- Create
financial and/or tax projections that show each party the financial
results of any given settlement proposal
- Identify
opportunities to reduce or eliminate taxes for both parties, whether
income, capital gain or estate.
- Recommend
options to protect assets for your children
- Think
creatively to suggest financial solutions that improve the financial
security of both spouses.
Choosing a
financial professional that has the right experience, training and credentials
for a situation is important. Using only those trained in Collaborative
Law is essential. And just as the mental health experts have different
areas of specialization (i.e. some work more often with creating parenting
plans, others with coaching the parents through their divorce), so do
the financial experts. Attorneys can assist clients in choosing the
financial expert or experts that will fit their needs and personality.