In some divorce cases, a financial neutral is needed to help the couple sort through financials in the divorce to hopefully help them settle faster. The main focus of having a Financial Neutral is mainly an informative and educational task for the couple can make informed decisions about how to assign their assets, cash flow, and liabilities.
Commonly, the financial neutral is hired by the couple to serve as the single neutral financial expert in a collaborative divorce situation. A majority of the time, the given collaborative divorce attorney will be able to present names and numbers of Financial Neutrals suitable for the given divorcing couples.
To make sure that everything stays neutral in the collaborative divorce, the financial neutral is not allowed to provide any services after the divorce. This involves no help with investment sales or services, tax preparation, or any other financial services may be provided.
How does a financial advisor help in a collaborative divorce?
- Analyzing tax implications of various scenarios for spousal and child support, and marital property division.
- Providing cost-effective guidance to clients to help reduce emotional distractions and make work sessions more productive.
- Providing long-range projections for future cash flow and budget needs, using charts to help you see their impact.
- Providing an analysis of the needs of the supported spouse and the paying abilities of the higher-earning spouse.
- Assessing the economic consequences of keeping one asset over another.
- Exploring “what if” scenarios – allowing you to see the impact of one or more aspects of a proposed financial settlement.
- Identifying behavioral issues around money, which might be family-generated or experienced, such as excessive spending, hoarding, avoiding, etc.
- Providing education and information, helping to reduce fear and anxiety, and making it possible for you to find creative settlement options.
- Teaching financial literacy – how you can control your finances.
Collaborative divorce and hiring different professionals, such as a financial neutral, can lessen the stress that is usually caused by many divorce cases.
If you are interested in learning more about the collaborative divorce process and how Stange Law Firm, PC can help you with a collaborative divorce, you can visit their website. You can also call us at 1-855-805-0595.