Facing Divorce? Tips from the Trenches – Decided on a Collaborative Divorce, What Next?

Written by: Manjula Shaw, CFP®, CDFA®

“Tips from the Trenches” is a series of articles based on conversations with professionals who work with individuals facing or considering the prospect of divorce. Watch this space for conversations with professionals in family and collaborative law, such as forensic-certified public accountants, mediators, marriage counselors, family court judges, and valuation specialists. 

Manjula Shaw is a Certified Financial Planner (CFP®) and an Asst. Vice President at Tanglewood Legacy Advisors. As a Certified Divorce Financial Analyst (CDFA®) Manjula specializes in helping individuals navigate the financial complexities of late-stage divorce, including asset division, alimony, and child support. She is trained by Collaborative Divorce Texas as an independent, objective financial expert committed to helping divorcing couples and families navigate competing and shared needs and develop solutions that best fit the parties and their children without court intervention.

Manjula’s conversation is with Christine Lincoln at The Lincoln Law Firm, PLLC, a family law attorney who practices Collaborative Divorce in Houston. Christine works with clients to navigate the legal challenges of divorce and other family disputes, offering clear guidance and practical advice to help them find resolutions. Their discussion explored Christine’s Collaborative Divorce practice and how this approach could benefit couples considering divorce.

Next Steps After Deciding on Collaborative Divorce

When a divorcing spouse prefers to pursue a Collaborative Divorce, Christine helps her client persuade their spouse to participate in the same process. Similarly, a Certified Divorce Financial Analyst® (CDFA®) could educate their divorcing client, assist them in sourcing a Collaboratively trained attorney, and help get their spouse on board. Communication with the other spouse can occur through their attorney, or, if circumstances allow, Christine may explain the collaborative divorce concept directly to the spouse. If the other spouse agrees to the collaborative process, they must hire an attorney trained in collaborative divorce. Christine can provide recommendations, or the spouse can find their own attorney. The Collaborative Divorce Houston website is a good resource for beginning a search. If the other spouse cannot be convinced, the client must abandon the idea of a Collaborative divorce.

Once both spouses have agreed to the process and secured their legal counsel, they will meet with their own counsel first to discuss the details and decide on the makeup of their collaborative team. They must decide whether to hire a Mental Health Professional and a Financial Professional. Recently, one of Christine’s clients was in a divorce with hostility between the couple; they decided not to retain a Mental Health Professional to save on fees. However, in Christine’s opinion, retaining a Mental Health Professional could have saved them money in the long run by helping the team effectively navigate when emotions run high. After finalizing these details, the couple will sign a Collaborative Divorce Participation Agreement, which commits both parties to resolving their issues outside of court through a collaborative process.

 

The Collaborative Divorce Participation Agreement commits both parties and their attorneys to working together outside of the courts and pledges to share all relevant financial and other information openly and honestly. This commitment to transparency ensures that the process is fair and equitable for both parties.

What is the Collaborative Divorce Legal Framework?

 

Once the agreement is signed, the spouses meet one-on-one with the Mental Health Professional and the Financial Professional. This initial meeting is a crucial opportunity for each spouse to express their side of the story, establish goals, and set the tone for the collaborative process.

 

The first joint meeting of the couple and professionals is the opportunity to review financial, property, and parenting information. The Mental Health Professional leads the communication in joint meetings and sets the agenda for the next meeting. They also maintain neutrality and manage emotions when they run high. This meeting allows the family lawyers to set goals, represent their client’s interest, negotiate on behalf of the client, and review the parenting plan. Christine has experienced that the emotions of divorce can cloud judgment; her clients lean on her to help parse through details and to look out for their interests. Christine can advise whether the couple needs to retain other professionals, such as a Child Specialist or a Valuation Consultant. The Financial Professional reviews budgets for each spouse and identifies assets that may be problematic regarding division, such as joint annuities or privately held businesses, retirement plans, and real estate assets. The Financial Professional also helps the couple look at the big picture, analyze how each financial decision impacts other decisions, and propose an initial division of assets.

On average, four to five joint meetings are common in an uncontentious collaborative divorce. In between joint meetings, the couple may meet with their own attorneys and neutral professionals to address issues that cannot be addressed in a joint meeting. Some examples are how best to address one spouse’s financial infidelity or the power imbalance between the couple.

Finally, a comprehensive settlement agreement outlining all decisions made during the collaborative process is crafted. Once the couple signs the final agreement, it is submitted to the court as part of the legal divorce process. After the judge reviews the agreement to ensure compliance with state laws and the best interest of the children in the divorce is served, they sign off on the divorce, finalizing it. This step ensures that the agreement becomes part of the court’s final divorce decree and is enforceable by law, providing individuals with the security of a legally binding agreement.

Contact Manjula Shaw at mshaw@family-cfo.com if you have any questions.
Manjula’s blogs on all topics of divorce: Blog – Family CFO (family-cfo.com)

 

 

 

 

 

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