The Role of the Neutral Financial Professional in 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
THE NEUTRAL FINANCIAL PROFESSIONAL:
- Gathers all relevant financial documents
- Identifies and prioritizes financial needs
- Prepares detailed financial reports for all members of the Collaborative team which also serve as the clients’ declarations of disclosure
- Educates one or both clients regarding the family’s financial position
- Assists with developing a client’s budget
- Raises awareness of need for other financial specialists
- Facilitates discussion of settlement options and analysis including tax consequences
- Prepares projections based on the different settlement options
- Brings the voice of financial reality to the discussions
