Divorce is difficult, and it can be very stressful. However, if you and your soon-to-be ex are parting on decent terms, collaborative divorce might be a way to facilitate the divorce process so you can move on. During a collaborative divorce, you work with:
- Attorneys who are focused on your best interests, not their own
- Financial planners who will help both of you understand the tax and financial impacts related to a divorce
- Licensed mental health professionals who can help you and your family members address the emotional concerns that come from a divorce
While collaborative divorce might not be the right answer in every situation, there are five financial benefits worth considering before going through the traditional process.
Financial Benefit #1: Collaborative divorces are often quicker.
The collaborative divorce process is designed to minimize the amount of time spent in courtrooms, legal proceedings, and filing paperwork, none of which add any value to your life.
Instead, collaborative divorce focuses on the specific issues that you and your soon-to-be ex-spouse are facing. Once those issues are identified, it’s easier to focus your efforts on resolving them.
As a result, collaborative divorce is usually a quicker option.
Financial Benefit #2: Collaborative divorce is often less expensive.
Because there is usually less time spent on non-value added things, collaborative divorce can be less expensive. After all, less time means less money spent to hire people who charge by the hour.
Financial Benefit #3: You are more likely to understand the financial aspects of your post-divorce life.
Part of the collaborative divorce process involves digging into the details of what you need to move on.
In many cases, people going through the traditional divorce process lose focus on what’s important. Sometimes it’s because of the difficulty in navigating the legal system. Other times, it’s a matter of ‘hurry up and wait,’ because the legal system isn’t that responsive to what you need.
As a result, many people get frustrated and focus on getting to the finish line, even if they don’t fully understand what it means after you get there. Sometimes, the divorce becomes a game of attrition, where the spouse who can hold out ‘wins.’ That’s not right.
The collaborative divorce process helps you get back on track by cutting out the unnecessary and focusing on what is truly important for you. And helping you realize what is important to your ex.
Financial Benefit #4: Once you understand what you need, you can negotiate a better outcome for yourself.
If you can save yourself the frustration of the traditional divorce process, you can spend more time understanding what you need after the divorce is final.
If you can do that, then you can figure out what you can walk away from. Knowing this is the key to ensuring a more financially stable future.
Financial Benefit #5: Each of you is better prepared to enjoy your post-divorce life.
If you are able to complete the collaborative divorce process, you probably will have:
- Spent less time on the divorce
- Spent less money on hiring people to get you through the process
- Spent more time thinking about what’s important to you
- Done a better job negotiating a better outcome
If that’s the case, then you’ll be better prepared for life after your divorce.
While collaborative divorce is not for everyone, there are many cases where it helps divorcing couples bypass the bureaucracy of the traditional divorce process and move on.
If you find yourself struggling to make financial sense of your divorce, you should consult with a financial professional that specializes in divorce work. Working with a Certified Divorce Financial Analyst® is a good way to take that first step towards a more financially sound future. Schedule your appointment with Lawrence Financial Planning today. We will always give you professional advice and walk with you every step of the way. We invite you to one of our monthly Divorce Workshops. Find the details on Facebook and Instagram, or visit our website.