Understanding the Role of the Financial Professional in Collaborative Divorce

Most divorce proceedings will have a significant impact on your finances, both now and in the future. While attorneys certainly have the legal knowledge that you need to navigate the collaborative divorce process, having a financial professional work as a member of your team can be extremely helpful.

What does a Financial Professional Do in a Collaborative Divorce?

This person works as a neutral third-party to help work through the various financial challenges may arise in your divorce. In the collaborative divorce setting, the financial advisor helps both members of the couple ensure that they have considered all of the economic ramifications of the separation.

While the role of a financial advisor is slightly different in each divorce, this person will often help will tasks that may include:

Tracing funds from accounts to determine which funds are considered marital property
Valuing business assets or general assets held by the parties
Deciding how much money someone might need to continue their current lifestyle in the future (which is helpful to determine if alimony is necessary)
Preparing schedules of assets and liabilities and valuing assets that are not easy to liquidate
Determining the tax consequences of a proposed asset or liability division and spousal support or child support payments

Your attorney will be able to help you use a financial professional in a way that makes the most sense for your situation.

Benefits of Having a Financial Professional in Your Collaborative Divorce

1. Decreased time, effort, and investigation

Having a professional who knows the ins and outs of these tasks will often significantly reduce the time and effort it takes to determine these issues. Because the financial professional is a neutral third-party, you can often split the expenses associated with this expert with your soon-to-be former spouse as well.

2. Creative solutions that work for everyone

A financial professional will also help you and your spouse determine creative ways to reduce the overall cost of the divorce for everyone involved. Someone who has extensive experience can often help you cut down on liabilities significantly.

3. Fair results from a complete review of the situation

Finances often overlap a great deal for couples who are considering divorce. Having someone help with organization and division who can look at the whole picture will often create a more even or fair result for everyone involved. Additionally, a professional can start the conversation about the financial aspects of the divorce that you may not have considered or even realized.

Piper Law PLLC will often use financial advisors as part of our collaborative divorce strategy because of the many benefits they offer. Learn more about this type of approach by contacting our team.