Role of the Financial Planner in the Divorce Process

The use of financial planners in the divorce process is relatively new, but is a rapidly growing trend. The reasons for this are simple. The divorce process involves to a large extent the untangling and subsequent division of assets and income. Despite a lack of formal training in personal finance, attorneys and mediators have historically been thrust into the roles of financial analyst and adviser. This has been an area fraught with danger, both from the divorce professional’s and the client’s point of view. While accountants and actuaries have participated in the process, their services have usually focused on the valuation or investigation of assets, not on personal finance.

Financial planners are recognized experts in personal finance. Because they have traditionally helped individuals achieve long-term financial goals, such as saving for college or retirement, they have specialized training and skills that enable them to analyze financial issues in their long-term context. They are thus able to peak into the future and provide insight into how a particular allocation of assets and income might play out over time.

A divorce financial planner can help individuals going through divorce focus on the difficult financial issues at hand, which sets a more positive and productive tone for discussion and makes the process more efficient and cost-effective. It empowers individuals to make wise and workable decisions regarding the hard, but often necessary lifestyle adjustments. People frequently feel more secure about the choices they make, are able to reach workable settlements more quickly and are less likely to be forced to revisit support issues in the future.

Here are some of the things you can expect a divorce financial planner to do for you:

• Help stabilize your financial situation.

• Prepare accurate and realistic post-divorce budgets.

• Calculate your respective needs and paying abilities.

• Legally minimize taxes.

• Analyze alternative settlement scenarios and determine their workability.

Our thanks to http://www.divorceinteractive.com for this article.