First of all, we’ve been looking at the professional roles that compose the Collaborative approach in order to better understand Collaborative law and Alaska’s six-way team model.
Also, today, we’ll focus on the neutral financial professional.
Finances and money are a significant source of stress in personal partnerships. In the situation of divorce, that stress can turn into a show stopper.
If a couple can’t adequately navigate their financial matters, it’s likely that their divorce process will drag on and not successfully put to bed financial tensions.
Above all exacerbate them and set up ongoing challenges for each party, long after the divorce is “settled.”
Hence, the role of the neutral financial professional is paramount to the success of the Collaborative process.
NFP is a licensed Certified Financial Planner (CFP) or a Certified Public Accountant (CPA) who has also earned certification as a Divorce Financial Analyst.
That’s a lot of certification! (that makes sense)
Because, this person must have a handle on some of the more complex, personal financial matters that exist in our society.
Certainly, when a couple divorces, there are many aspects of their financial lives to consider:
The NFP fills a similar role to that of the mental health professional (MHP).
They take a big picture view of the situation—except through the lens of financial realities.
They are typically aware of how finances can stir up powerful emotions.
Therefore, can work closely with the MHP to help the team navigate those emotions (hence, the inherent value in the Collaborative team approach).
NFP’s neutrality is of great value because their role removes the possibility of one party trying to out-smart or out-spend the other.
Another example, multiple parties trying to tell a different financial story, based on the same information.
Further more as a neutral party, they give greater credibility to the information. As a result, they help to foster a dialogue that is mutually beneficial to the parties.
NFP's helps the couple evaluate their financial situation.
Besides that, NFP's develop informed, creative solutions for the complex financial problems inherent in their divorce scenario.
Most importantly, the neutral financial professional helps a couple to understand their financial realities. They explore their options and choose the best for all parties involved.
In this way, they empower the couple to settle smartly and avoid having someone else take control over those decisions.
Finally, the desired outcome is that the settlement feels more like a settlement.
Most of all, each party can feel more secure in their future.