If Marriage is About Love, Divorce is About Money

A new client came to me at the recommendation of her Family Law attorney.
She wanted to consult with a financial advisor while preparing for her mediation. She wasn’t necessarily looking for a specialist, a Certified Financial Divorce Analyst. She just wanted someone who could help her envision her financial life post divorce.

I am a CDFA and understand divorce law in New Hampshire. 
But in this case, that really wasn’t my role. As her attorney defined it, my role was to help her understand what she and her husband owned and how some of that would support her for the rest of her life.

Therein defines the respective roles of an attorney and a financial advisor during a divorce process. 
The attorney will address the legal issues, and the CDFA® will assist the client and his/her lawyer in understanding how the financial decisions he/she makes today will impact the client’s financial future.

Today’s Family Court is a crowded and complex arena.
Family Law attorneys are handling increasingly complex issues such as commercial real estate, business interests, and complex family dynamics with child custodial issues. If attorneys can receive assistance in developing the financial settlement, it allows them to focus only on those legal issues.

Financial Planners have always assisted clients in understanding their financial resources.
Those resources, such as retirement plans, social security, and real estate holdings, all work together in retirement and other exit situations. Divorce is one of those exits with its own legal overlay.

During the divorce process, attorneys and their clients are often asked to present mediators with very clinical financial affidavits. 
These affidavits contain assets, budgets and family statistics, and outline only the very basic facts and financial information of a family’s circumstances. Proofs at trial can be equally empty and perfunctory.

What is lacking is a great deal of “non-legal” information from other disciplines. 
That information would take those same financial facts and incorporate them into a process that includes economic assumptions, tax consequences, and actuarial projections. These projections help all parties involved see the whole picture long term.

Divorce has the possibility of being devastating to the families involved.
But it doesn’t have to be. A mutually agreed upon settlement hammered out by informed parties can help. It has a greater possibility of successful acceptance and implementation than one handed down by a judge.

I've experienced the challenges firsthand.
I went through a lengthy divorce with painful consequences for myself and my children. Since then, it has been an ongoing mission for me to help others avoid the same challenges. And yes, it can be done!

Want to know more about financial planning for a smarter divorce? 
You can learn more about The Better Half, or schedule a free consultation, by clicking here.