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Collaborative Divorce and the Financial Neutral's role in the process. Differences between litigation and Collaborative alternative dispute resolution with regards to finances, costs and outcome.

Angelina Jolie and Brad Pitt, Naomi Watts and Liev Schreiber are breaking up.  As Hollywood icons, do they know something the rest of the divorcing population should consider?  Watts and Schreiber in announcing their breakup jointly said “It is with great love, respect and friendship in our hearts that we look forward to raising our children together and exploring this new phase of our relationship.”  Brad Pitt echoes those same sentiments “I am very saddened by

Bethenny Frankel, of “The Real Housewives of New York City,” has been embroiled in a bitter divorce battle with ex-husband Jason Hoppy.  Their four-year, contentious dispute included a parenting fight, maintenance (alimony), and an apartment Bethenny bought in 2014 during their legal battle which commenced in 2012.Bethenny Frankel is just one of the many “Real Housewives” reality stars whose divorces have become a very public matter when utilizing the courts to resol

Angelina Jolie has started to talk about the stress of her divorce with Brad Pitt and how they are going through the process. Angelina’s goals for her family are much the same as they are with Collaborative Divorce. As reported in the Los Angeles Times, Jolie said, “We are a family, and we always will be a family, and we will get through this time and hopefully be a stronger family for it.”Jolie and Pitt find themselves in a situation like many other families where their focus

As a Certified Divorce Financial Analyst, and Certified Financial Planner, I have seen clients that went through long protracted divorce proceedings, costing thousands upon thousands of dollars only to have an outcome decided by the judge that both husband and wife were unhappy with.  Will you be obligated to pay maintenance for life?  Will maintenance continue for a few short years to “rehabilitate” to go back/into the work force?  Will the division of assets be split

Who will decide who “wins” your divorce?I recently attended a Collaborative study session where the attorneys were discussing the benefits of Collaborative Divorces compared to litigated divorces.  It reminded me of a baseball game.In litigation, the client directs the attorney by stating: “I want this, I need this, get me this.”  The client is like a catcher” in the baseball game telling the attorney “pitcher” what to pitch (pun intended).&nbs

The beauty of going through the collaborative divorce process is that the decisions made between husband and wife are bound by what the couple wants, of course with guidance from their respective attorneys.  Generally, the financial separation of assets is done at the time of the signing of the divorce agreement.  However, it can occur at any time if agreed upon by the parties.If a couple has already reached a financial agreement of how the marital assets should be divided, there is no

...of getting into college and financial aid  So, you’re getting divorced and you have children that will be going to college.  You’ve contributed to a 529 college plan, but not enough, or you never started.  You’re getting divorced and now money will be tighter as there are two households to support.  The emotions, the finances, what do you do?  Well, if you are litigating your divorce and you can’t reach a settlement with your spouse, the judg

I was recently reminded of the conversation Alice had with the Cheshire Cat in “Alice in Wonderland,” of a person deciding to litigate their divorce, without understanding the consequences.[Alice] went on. “Would you tell me, please, which way I ought to go from here?”“That depends a good deal on where you want to get to” said the Cat (lawyer)“I don’t much care where,” said Alice“Then it doesn’t matter which way you go,” sai

When one is first contemplating leaving a marriage or when one is first told their marriage is ending, panic can set in.  Oh my gosh, will I be able to stay in my home?  Where will I go?  What kind of place can I afford?  Will I have to get a roommate?  All of these thoughts can come flooding through our consciousness.Don't panic.  It really does not matter if you are the one who has handled the finances or the one who knows very little to nothing about your fam

There are many ways to get divorced: using the litigation process (with lawyers in court), mediation and collaborative process (with lawyers out of court).  Most people just chose the option that they know (litigation), without regard to the consequences on the family and finances, thinking they will have their day in court.  Or, some people in trusting relationships chose mediation in an effort to save money. Collaborative Process, a newer approach may seem more costly since it involv

how to make the right decision Are you the “what if” person?  You are looking to sell your home and you interview different real estate brokers.  They each provide you with comps (comparables) of what they feel you house should sell for.  Some may even say…I have a buyer that would be interested, let me list your home. Or they promise to you/suggest that you can get “Y” for your home when the other brokers are more realistic and suggest  &ldquo

A post divorce budget is one of the most critical pieces of information to have when determining the financial divorce settlement.  I have seen budgets created where one party only lists the expenses that he/she is currently paying for during the separation.  This most certainly is not the case post divorce.  Car insurance, cell phone, medical insurance, rent/mortgage expense, accounting fees, religious dues are just a few examples that may add or reduce your ongoing budget post d

Depending on ages of children brought to the marriage, very important to discuss financial issues…his kids, her kids, their financial future Generally not as much money in a second marriage to go around.  Important to review what assets and liabilities are being brought to the marriage, and how will the responsibilities and dreams be fulfilled.  Cash flow analysis so there are no conflicting concerns on what is affordable for each component of the new marriage…his ch

When you start a project you have to make sure you have the right tools to complete the task.  It’s spring and a time that most people start their gardening tasks of weeding, fertilizing and planting to ensure the perfect garden.  Although divorce is not a project one looks to undertake, you want to make sure that when the job is done you had the right tools in place to flourish.  In a litigated case, the attorneys battle it out to make sure that there is only one winner, an

THINKING THE ONLY WAY TO GET DIVORCED IS THROUGH LITIGATION IS LIKE PLAYING A ROUND OF GOLF WITH ONLY A DRIVER.

Divorce is a scary process where outcomes are unknown. You may not have chosen the path to get divorced, but I’m sure you want to be part of the outcome that will determine how you will live in the future.