Divorces are tricky business and have plenty of emotional—and financial—implications for all involved. Who’s getting custody? Who’s getting the house? And where have they hidden the keys to the cottage? No matter how great an attorney you have, it might be useful to have a financial planner on hand to sort through and help you understand the tax and money issues that come up during the process of separation, say the experts at Advisor.ca:
Collaborative law is an approach that uses “interest-based” negotiation. In contrast to the traditional approach, which often yields only losers, collaborative law aims to create a win-win result for clients.
Increasingly, financial planners have become an important part of the negotiating team in out-of-court divorce settlements. Collaborative Practice Toronto suggests advisors can help clients by:
• identifying, clarifying, and prioritizing financial needs and concerns (needs during or after the legal process);
• determining adequate budget and financial arrangements for the children’s changing needs; and
• contrasting and comparing different settlement scenarios, and empowering spouses to make fully informed financial decisions.
Financial planners can be especially helpful in out-of-court divorce settlements that look to negotiate for the interests of both parties so no one ends up the loser.
Hiring an expert with knowledge of your money situation could be invaluable in making informed, level-headed choices in a time of stress and emotional upheaval. What are your priorities? (Other than making sure your spouse doesn’t get the flatscreen). What’s the best thing to do with your settlement? Your planner can draw up different settlement scenarios so you can see the consequences of them all and make the smartest decision possible.
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