I see many bad financial decisions made by those during and after their divorce. Most of the mistakes are related to decisions based on emotions rather that accurate financial data and professional financial advice. Every divorce involves legal, emotional and financial issues, yet the majority of those going through a divorce only seek legal advice. Family law attorneys are experts in family law. Financial professionals who specialize in divorce are experts in the financial and tax issues related to divorce.
The typical divorce process is focused on dividing property, debts and determining alimony (spousal support) and child support. The family law code and court cases in the jurisdiction where the divorce takes place, regulates the outcome. Family law code is not based on the long-term financial needs, concerns and objectives of the family. Divorce financial analysts are trained to look at what the potential long-term financial outcome may look like.
The Collaborative Divorce and Divorce Mediation processes present the opportunity for a divorcing couple to focus on their long-term financial needs, concerns and objectives. The focus is shifted away from “how much can I get” to how I can best meet my long-term financial needs. Divorce financial analysts can present alternative settlement options that consider each parties income, living expenses and potential tax issues, going forward. Having this information can lead to more prudent financial decisions, before the divorce is final.
Every divorce has a long-term financial impact on both parties. An experienced divorce financial specialist can provide you with information and analysis to help you make decisions with your long-term financial security in mind.