While divorce is never easy even in the best of times, new approaches and solutions for clients continue to emerge as they grapple with diminished real estate values and a slow economy. I am seeing a new trend in the number of both individuals and couples who are using our pre-divorce financial preparation and evaluation services as a first step, before contacting a divorce mediator or attorney.
Particularly among those parties who are choosing Mediation to resolve their divorce, I have seen a significant increase in couples and individuals using my services prior to beginning their mediation talks as they recognize lower costs and a more efficiently focused process.
Given the nature of mediation as an alternative dispute resolution process to litigation, and one where the parties needs are meant to shape the agenda and settlement - their objectives being given precedence over case law - I’m helping more and more clients in an efficient and cost effective preliminary step of pre-divorce process financial evaluation.
Here are 5 reasons why working with a Certified Divorce Financial Analyst (CDFA) as a precursor to meeting with legal advisers may reduce the costs, tensions and amount of time you spend in completing your process:
1. Parties are more informed heading into the negotiations
Removing the guesswork from the decision-making is a big leap forward for the concerned parties. Having marital financial settlement scenarios already vetted creates fluency ahead of the dreaded negotiation-
2. Provides a framework for more efficient discussions
Given the thorny issues that can arise in negotiating the financial settlement, and the tendency for negotiations to derail in any number of directions when fueled by emotional context versus objective analysis, having a pre-vetted framework in hand can keep discussions more focused on realistic negotiating points.
For example, if one settlement scenario has already been tested and comes up short for providing enough liquidity as needed for one of the parties, knowing that ahead of time ultimately focuses the discussions more efficiently to looking at other solutions that produce the desired results. Non-productive tangents are then avoided.
3. Mitigates tensions
It's not unusual for individuals in any negotiation to become overly entrenched on a sticking point that may or may not have practical significance. In other words the emotional content is escalating tensions. When parties have a more informed starting point, they tend to sidestep some of those emotionally charged sticking points and negotiate more efficiently.
4. Saves time
Already stretched with longer work hours in a challenging economy, many busy professionals see the benefit of fewer hours in negotiation meetings and protracted court times. With scenarios that have already been evaluated ahead of time, the process becomes more streamlined. Meetings become more focused and productive while saving time.
5. Saves Money
By focusing on possible scenarios that avoid the emotional and economic pitfalls, while leveraging any financial opportunities that may exist, I see clients shortening the number of negotiation meetings - and ultimately their overall process - necessary to completing their financial settlement agreement. Fewer hours in negotiation meetings and protracted court times means less expenses for the clients.
Ultimately it’s about the client, and making sure they have an informed perspective, confident fluency, and to provide a level of financial security and prosperity for the long run. With the help of a CDFA at any stage of the divorce process, clients can avoid the common pitfalls and economic inefficiencies that have characterized many divorce financial settlements in the past.
What personal experiences or tips have you had that you would like to share with our readers?
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