USING A FINANCIAL NEUTRAL IN DIVORCE

Many couples opt for a collaborative divorce because it is faster than a traditional divorce, costs less money and reduces the need for post-divorce litigation. Additionally, working together for mutual benefits makes a collaborative process less hostile and stressful.

In a collaborative divorce, the process gets led by the lawyers. Lawyers need not be present for mediation; if they are, they do not conduct the meetings.

In an uncontested divorce, both parties either agree beforehand to all terms of the separation, or one party files, and the other never responds. A collaborative divorce involves a series of meetings because both sides actively seek a beneficial outcome; if that fails, there is still the possibility of a court battle.

By choosing to negotiate according to a series of predetermined meetings with lawyers rather than pursuing a lengthy court battle, collaborative divorces frequently help people save money on divorce.

A financial neutral is a member of a collaborative divorce team or a mediator who helps couples find, organize and understand their financial information and facilitates a process of educating, visioning and creating a plan for settlement. 

What are the Benefits?  

• Under the best of circumstances gathering financial information is complex, tedious and fraught with emotion, negative habits and fear. This gives a neutral, calm and supportive environment for that task.
• Helps the couple understand their finances in a comprehensive, integrated way without denial or avoidance. Look at it, shine a light on it, organize it and understand it.  These are tasks many of us spend a lifetime avoiding and yet are skills that can begin a process of transformation.
• Helps the couple understand assets, financial issues and the impacts of their decisions, short and long term.
• Helps them identify interests, the elements of a plan and how to assess it.
• Helps them come to reality from the magical thinking we all engage in from time to time, which can be so destructive.

What are the Qualities of Financial Professionals?

• They are trained in Collaborative practice and/or mediation.
• They have a breadth of knowledge in financial matters pertaining to families, including asset valuation, tax, cash management, budgeting, investments and retirement.
• They have a knowledge of fundamental legal concepts regarding financial issues in family law matters including marital and non-marital property, equitable distribution, spousal support and child support.
• They have facilitative skills, are neutral, open minded, creative and are team players.
• They have an ability to educate persons who have an insufficient knowledge or understanding of the relevant financial concepts and present financial information in a clear and meaningful format.

What are the Tasks of a Financial Neutral?

• To help you identify your high-end goals. Do you want each of you to have enough money to live comfortably? Own a home? Have your respective lifestyles be approximately equal?  Retire early?  Get some education and start a new career?
• To create accurate reports of budgets, cash flow, asset and liability property division reports that are easily adjusted and recalculated for consideration of different options and ideas, including tax ramifications.
• To do long term projections for different options considered for support and property division, including retirement planning.

How Financial Neutrals Benefit Attorneys and Mediators

• They create reports to work with that get the case moving quickly.
• Save staff time and expense collecting and entering client information.
• Save money for clients. One financial neutral gathers information rather than two lawyers doing the same thing.
• Runs reports to show the effect of different settlement options in real time at negotiation meetings.
• Helps guide clients with reality checking as a neutral.