Going through a divorce is stressful in many ways. One of the most common stressors in a divorce is financial fear. Both spouses have worries or fears about what the financial future holds for them.
Common financial questions each divorcing spouse asks themselves, their attorneys, and financial professionals are:
- What am I going to walk away with?
- What am I going to have after the divorce?
- How much is the divorce going to cost me?
- What will my financial situation look like when this is over?
- What is going to happen with my retirement account? Will I even be able to retire?
- How will we put the kids through college?
- How will we pay for the children’s weddings?
These are the biggest fears the parties have surrounding their divorce. These fears are generally based in the fear of the unknown. If each spouse can each learn about their future and work with a neutral financial expert, those fears can be addressed.
Fear Increases or Decreases Depending on the Divorce Process
There are four different approaches to the divorce process:
- Do-it-yourself. Which is just what it sounds like. Usually, not much is done to allay the financial fears.
- Traditional litigation. This method pits the parties against each other, both trying to be the winner. Nothing is really done to help with the financial worries each party has because it I all about winning and losing. If anything, fears increase as they battle each other in court.
- Mediation. The spouses meet with a neutral third party who guides them as they make decisions concerning their future, including their financial future. A financial expert may be brought in to help.
- Collaborative Divorce. This divorce process puts the spouses in the driver’s seat. They work with financial advisors who provide them with in-depth information about their finances and options that they need to make decisions.
Benefits of a Collaborative Divorce in Reducing Financial Fear
In addition to ensuring the spouses have the financial information they need, the neutral financial consultant helps with budgeting for their after-divorce lives, so they can see how their financial future is laid out.
Retirement funds are analyzed carefully and divided according to law with the correct court order prepared so that both spouses understand their retirement future.
Communication is fostered so that each of the financial fears is addressed and that when the divorce is final, each spouse has a roadmap showing their financial future.
Heberger & Company Can Help
For more information about how a neutral financial professional can help you with your financial fears, contact us at Heberger & Company An Accountancy Corporation.