Kane County Divorce; Collaborative Divorce and Saving Money
CPA Ginita Wall has some sound advice for strategies for separating out the emotion in a divorce from the financial outcomes. Attorney Michael Roe has seen, from years in practice interfacing with judges in cases with complex financial issues, that judges are more interested in well managed facts, organized information, and persuasive arguments supported by case law in favor of my client's positions on allocating cash flows and the marital estate. In other words, strong emotions and allegations of fault play no role in how judges decide the financial aspects of a case. Ms. Wall discusses well, below, some of the advantages in a collaborative process with financial issues in divorce.
" Five Tips for Separating Emotions from Economics in Divorce"
In divorce it is important to focus on the real problems to come up with real solutions. If spouses are at war, they are likely to see each other as the problem and the divorce as the solution. But they won’t get to true resolution until they recognize that simply isn’t true. The real problem is how to divvy everything up in divorce, and divorcing spouses won’t arrive at the best solution for their family until they collaborate on resolving their issues by working together, not against each other.
The job of the professionals in collaborative divorce is to help clients figure out how to divvy up the assets and debts so that each spouse emerges from divorce with a fair share of the pot that will let them begin anew. Here are five tips the divorcing spouses can use to separate emotions from economics:
1. Don’t let guilt rule you. “Please release me, let me go,” pleads the country song, but don’t give up everything to buy your freedom. Your spouse will still be unhappy that the marriage is ending, and you’ll be unhappy when you find yourself impoverished by your foolish gesture. The needs of each person are important, and the goal is to reach the best agreement possible as you balance those needs.
2. Don’t give in just to get it over. When going through divorce, carefully consider your current needs and your needs in the future. You can’t depend on your soon-to-be-ex have your best interests in mind, and you can’t depend on your attorney to know exactly what is best for you and your family. Don’t try to shortcut a divorce. The only way out is through, and it will take your conscious involvement to reach a resolution that will work for you.
3. Leave revenge at the door. Legally, it doesn’t matter who did who wrong. Revenge is costly, and funding a wild rampage by not giving an inch is bound to turn out badly. You won’t win every battle, no matter what, and if you stubbornly stick to your guns despite all reasonable offers to settle, who knows, you might even end up paying part of your spouse’s attorney fees.
4. Don’t succumb to threats, or threaten your spouse. Money and power are emotionally linked, but in divorce it isn’t smart to try to use money to control your spouse and get your way. If you launch a full-blown court battle and argue every financial issue, be assured that most of what you can’t agree on will end up being split between your attorneys, with a sizeable amount going to the financial professionals. That is money that could be used to fund your family’s future if you stay out of court.
5. Focus on problem-solving, not fighting. Don’t let meetings with your ex turn into posturing to show who is in control or how smart you are. Settling your divorce is the problem you confront, and it won’t get solved through fighting. You can’t get everything you want in divorce, so figure out what is most important to you and let the rest go. You’ll end up with a better agreement, a less tumultuous relationship, a happier family, and a healthier future.
by Ginita Wall, CPA, CFP®, CDFA