DIVORCE FINANCIAL ANALYSIS.

c5WM has developed an expertise in analyzing financial issues in divorce cases. We have over 15 years of experience working with some of the top family law firms in Virginia to help clients understand the financial issues in the divorce process. The overall goal is to have both parties understand the long term financial impact of their decisions.

"You thought your marriage would last forever . . . but your property settlement agreement will."

Divorce Settlement Options
There are various methods used to settle a divorce in both contested and uncontested situations. The ones that tend to make the headlines are the high net worth individuals that employ major law firms to battle it out in court. Unfortunately, many moderate net worth individuals end up spending a great deal of time, money and emotional energy to reach an agreement in or out of court. Even without going to court, the cost can be damaging to the parties future financial wellness. Ending up in court can be debilitating!

"Do you really want a judge to make decisions that will affect the rest of your life when he or she has just a brief moment to gain understanding of your situation?"

Litigation
There are certainly many times that going to court is the only way to resolve the dispute. However, less than 5% of divorce cases end up in court. The vast majority of cases are able to reach an agreement using attorneys to represent the individual client interests and negotiate a settlement. The unfortunate issue is that the majority of the divorcing parties do not understand the financial impact of their decisions and have relied upon their attorneys for guidance. The problem is that attorneys are not financial experts. In addition, divorce is one of the most emotional events in someone's life and it causes even "highly intelligent" individuals to make very poor decisions. Sadly, the children often are the "collateral" damage in the contested divorce.

In a litigated divorce c5WM generally represents one of the parties in the divorce in cooperation with their attorney. In most instances, the attorney has referred the client to c5WM and the cases are usually settled without going to court. However, when they do go to court, c5WM has provided expert witness testimony and helped prepare the data for the attorney to use in the presentation of the case.

Mediation
Mediation is a process often used when the parties are fairly amicable but unable to reach an agreement. A mediator is a person acting as a neutral in helping the parties reach an agreement through a process of understanding the issues involved. The mediator may be an attorney, mental health professional, or other qualified professional that has obtained a mediator certification. Regardless of their professional background they cannot provide advice to the clients. They act only as a facilitator in helping the parties reach an agreement. The clients will continue to need the guidance of their own attorneys and financial advisors outside of the mediation. The end result is a "Memorandum of Understanding" that is then reviewed by the client's respective attorneys. Once signed it carries the same weight as any other property settlement agreement and is incorporated into the divorce decree.

In mediation, c5WM often provides the outside financial expertise to one or both parties to help them gain the necessary understanding of the financial issues in order to draft an agreement (MOU).

Collaborative Process
Collaborative divorce is a process whereby the divorcing couple, their attorneys and possibly mental health professionals have a completely transparent development of the property settlement agreement. An independent financial specialist such as a CFP® or CPA may act as a neutral in the process by providing information on financial matters. This process of divorce is based upon three basic principles that promote a respectful divorce using self determination:

• A pledge not to go to court
• An honest exchange of information
• A solution that takes into account the highest priorities of both adults, their children and extended family

In collaborative divorce, c5WM is engaged as the financial neutral. As such, we can only provide information about the financial matters to help the parties understand their options in order to reach an agreement. In addition, as a result of being the financial neutral, c5WM can not work with either party in any future financial matter outside of the divorce process.

Divorce financial analysis is a method of identifying, clarifying and evaluating financial issues in the divorce process so that the clients can reach an agreement with full understanding of the impact to their future financial wellness.

c5WM is able to assist clients regardless of the divorce methodology utilized. Stan Corey is a Certified Financial Planner™ Professional and Certified Divorce Financial Analyst (CDFA), co-teaches a required course for mediators on the economic issues in divorce and is trained in mediation and the collaborative divorce processes. Stan and the c5WM team work to help clients focus on the end result taking into account all of the family's personal dynamics.