Divorce Financial Planning

 

Going through a divorce can be emotionally wearing and is often financially complicated.  Divorce affects individuals and families on three levels: legal, emotional and financial.  To help manage this trying time, a network of professional advisors can guide you through the emotional, financial and legal hurdles.  R Financial Recap offers individuals going through divorce, assistance in the financial area of divorce.  Our financial planning team is as integral a component as the attorney, therapist and divorce coach you select.  You'll find our financial planning projections helpful not just during the process, but also in planning your future.

As Certified Divorce Financial Analysts (CDFA's), R Financial Recap's team can help you make informed financial decisions before you reach your settlement.  In our pre-divorce financial planning process, we'll analyze your current situation and propose settlement alternatives.

Divorce is a Difficult Time in Your Life for Many Reasons

We're here to help you better understand the financial decisions
you will be making regarding your future.

 

A Client Advocate: We Represent You (and Your Family's) Financial Future

Acting as your divorce financial planner, R Financial Recap can help you build your own network of professionals during the divorce.  We can also integrate our financial planning team with any Professional that you select.

 

A Financial Relationship Resource for...

Clients, their Counselors and other Divorce Professionals
Financial burdens and poor communication are the top divorce drivers.  When financial problems strain a marriage - therapists, clergy and counselors are often the first to hear about a potential divorce.  For those who seek financial counsel, R Financial Recap helps guide you in the first step in alleviating some of the stress.  Proper financial planning provides peace of mind as it relieves the emotional burdens created by financial uncertainty and, in some cases, may preserve a marriage. 

 

A Financial Management Service to...

Allow Attorneys and their Clients to Focus on Legal Issues
Throughout the process, whether it is done through collaboration, mediation or litigation, we can remain an objective, neutral third party to one or both parties, during the legal proceedings.  Our services involve many steps.  One step may include helping you prepare the financial affidavit.  Another step further into the process will be providing detailed alternative settlement options.  If the case goes to court, we can also testify as an expert witness.  Throughout the process, we help clarify the long-term financial implications of health insurance; child support and alimony tax implications for both parties; property analysis; retirement plans and how to divide debt.

 

Choosing a Divorce Process

There are three methods of divorce: collaborative, mediation, and litigation.  In any method, a team of professionals (an attorney, a CDFA, individual and family therapists, a child specialist and a divorce coach) offer very distinct, yet important advice. 

Collaborative divorce is a process that encourages the parties to negotiate a settlement that is acceptable and satisfactory to both.  A team of professionals advises the family about legal, financial and emotional matters.  This process encourages the clients to manage their future interests.  Settlement in a non-threatening environment is the main objective.  Collaborative divorce can be the most expedient and least expensive divorce option and encourages an atmosphere of honesty, cooperation, integrity and professionalism.  Studies have shown that divorcing individuals who work with a team of collaborative professionals tend to make more informed decisions regarding their future and their children's future with less emotional turmoil.

Here is what collaborative divorce strives to accomplish:

  • Preserves post-divorce family integrity
  • Attempts to reduce stress and animosity
  • Promotes effective communication
  • Provides individual control over each case
  • Can be more cost efficient and done in a more timely fashion
  • Protects privacy

Mutual agreements are more likely to be adhered to by both clients.

Traditional Approaches

Mediation is a process that is conducted by a mediator who strives to establish, develop and maintain dialogue/negotiations between the divorcing spouses.  The mediator, who has been trained in divorce mediation and who serves as a neutral party, conducts negotiations to resolve marital disputes regarding any issue that proves to be a hurdle/stumbling block in the resolution process.  We can work with the mediator to represent one or work as a neutral, non-biased party to both participants.

Litigation is an adversarial process.  A state appointed court judge oversees all issues and has the power to discover and dispose of all marital, family and children issues at a final hearing, known as a trial.  Typical divorce litigation can last as much as 18 months or more before proceeding to final trial. 

Approximately 31% of your friends and co-workers, aged 35 to 54, who are married, engaged or live together went through their own divorce.

Attorney Advantages

Introducing R Financial Recap as a partner at the beginning of the process allows attorneys to concentrate on legal issues.  Our unbiased financial analysis avoids potential for perception of bias from attorneys.  And, our services reduce recapture malpractice exposure.  In the beginning, we prepare the financial affidavit.  Then, we present detailed alternative settlement options.  If the case goes to court, we'll testify as an expert witness.  Throughout the process, we act as the attorney's resource for explanations and information regarding health insurance, child support and alimony tax implications for both parties, property analysis, retirement plans and how to divide debt. 

When looking for Divorce Planning Assistance, remember:

  • Consult a certified divorce financial analyst (CDFA) before establishing or agreeing to the terms of the divorce settlement. 
  • Review your health and life insurance policies as well as your will.
  • Consider selling the house and splitting the proceeds.
  • Get advice when dividing property; selling real estate could trigger a big capital gains tax.
  • Understand state law on the valuation of pensions.
  • Our financial projections represent your case for a long-term settlement.