No one involved is left unscathed by the financial crisis spawned by the typical divorce in America today, least of all the children. I know.  I've been a Fort Worth-area financial planner since the early 1990s, and I' ve seen up close how devastating the financial blows can be for everyone in a divorce.

Divorcing spouses create separate households.  A divorce usually generates a 30 percent to 50 percent increase in living expenses for each new household.  That' s just how efficient a lasting marriage can be, money-wise.  Rarely, however, do incomes for divorced partners rise by the same amount.  Post-divorce income per ex-spouse, in most cases, stays about the same.  Sometimes it declines.  So, even the best, realistic expectations are scary: She/he will incur higher expenses to cover with similar income.

Here are some common scenarios that I see when a divorced woman or man comes to me a few years after the breakup: She/he has bogged down in credit-card debt.  Or, he/she has spent most or all of the settlement share.  Or, both situations are true.
Whatever, the ex-spouse has not adjusted to a lower economic rung, but instead, has continued on the higher, pre-divorce standard of living.

Obviously, something has to GIVE!

This tale of financial woe is even more common and often worse after "litigated" divorce, one in which the spouses go before a judge to fight over the estate.  The process doesn' t help either party plan for his/her post-divorce future.  The children, if any, suffer more than ex-spouses from this combative, assets-draining court conflict.

But there is a better way, the COLLABORATIVE DIVORCE way.

Using a team negotiation model, Collaborative Law offers a neutral financial planner to advise both spouses on the most cost-effective, fair path to dividing assets.  This specialist advises each party on how to budget for his/her separate new household.  Collaborative Divorce addresses all finance-related challenges, if the parties agree.

Here' s a good but not exhaustive list of possible financial services, all done via the cooperative and client-guided Collaborative Divorce process:

- Develop a joint inventory of assets and liabilities.
- Educate clients on financial challenges ahead.
- Design post-divorce budgets/cash flows; evaluate housing options.
- Develop creative settlement options; unveil likely impact of all options.

In its extremely proactive issue-resolving procedures, I' ve seen Collaborative Divorce deliver these affirmative, upbeat results:

- Clients take control of their situation. They grow more optimistic.
- Clients become better educated about their financial situations.
- Clients take the lead in planning their future housing needs and budgets.
- Clients start early to adjust to their changing financial situation.
- Clients don' t feel they' re forced or manipulated into a settlement.

Indeed, Collaborative Law works to save assets, plan realistic budgets and deliver a fair financial settlement.  It can even save the clients on cost of the divorce itself, by reducing the time to reach final settlements all outside the courtroom.


For more information, contact: Scott Clarke, CFP, CDFA,
409 Harwood, Bedford, TX 76021 
Phone: 817-857-1015; 214-432-0665