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175383921In my last post “Getting Unmarried: Gray Divorces”  I wrote about the increasing number of divorces for those over the age of fifty. Also of note was how Gray Divorces have many of the same foundational issues as any divorce although there are some distinct differences. Regardless of the issues, a trained financial neutral plays a critical role in the collaborative process. Money matters can be a bed rock of tension in divorce cases.  Financial issues are often cited as a major reason for marriage breakups. A financial neutral assists couples in navigating their finances. They help with the two major financial components in divorce. One is the balance sheet (list of all assets and liabilities), and two the cash flow and support. So what does a financial neutral actually do you ask.  First and foremost a financial neutral is just that – an impartial expert on financial issues. They remain unattached to any particular outcome. A good financial neutral can be worth their weight in gold when it comes to helping couples navigate money issues in divorce. Financial neutrals help a couple gather and identify the financial information needed. I often hear from spouses the detail involved in gathering the financial information is something they have never experienced. The reason for this is all assets and liabilities, each and every one, is separately noted in the final decree so as to leave no doubt who gets what and who is responsible for what. Independent third party written documentation is needed to support each asset and liability. This information gathering is a part of the process that can’t be short circuited. Having said this, when information gathering is completed by a financial neutral it can save spouses a considerable sum. Think about it. You are paying one professional, the financial neutral, to complete this process vs. each spouse providing the same information to each of their attorneys who in a non-collaborative divorce will have to review and assimilate  all the information provided, ask questions of their clients, and then likely have to converse with the other spouse’s attorney. Financial neutrals can assimilate and organize this information in a streamlined manner with the couple’s cooperation. Usually financial neutral hourly rates are less and sometimes significantly less than attorney rates. Once all financial information is collected and organized the financial neutral creates a marital balance sheet listing each and every asset and liability. The marital balance sheet forms the basis for discussion as to how each asset and liability is allocated between spouses. In the collaborative divorce process, couples make their own decisions about asset and liability allocations to each spouse.   Couples must ultimately reach agreements on the balance sheet. The financial neutral along with each spouse’s attorney helps facilitate these discussions. The alternative in more traditional litigated divorce cases is someone else, a judge, makes decisions for the couple since they are not able to agree on their own. Financial neutrals help spouse’s asses their ability to meet their reasonable living expenses (cash flow). This part of the process includes analyzing income sources and estimating future living expenses. Generally spouses are asked to complete some sort of budget template. In my experience both as a financial neutral and a financial planner, I find most people do not care for the term budget. I do a fair amount of public speaking and when I ask people what they think of when they hear the word budget it usually has a negative impression like restrictive or confining. I have attempted to remove the word budget from my vocabulary as a result and replaced it with cash flow or spending guide.  Budgets tend to be backward looking while the words cash flow and spending guide are future oriented. Assessing income and expenses (cash flow) provides each spouse with a realistic look at their financial security moving forward. Financial security is the number one goal I hear that each spouse wants to achieve. No one has ever told me they want financial insecurity. A realistic look at cash flow for each spouse is critical to providing the financial security they seek. Here is a phrase I have used when having cash flow discussions. If your outgo is greater than your income, then your upkeep may be your downfall. Think about that for a moment. Better yet remember it, as it will serve you well no matter your financial stage in life. Yes the balance sheet with its listing of all assets and liabilities and the cash flow and support pieces form the two financial pillars of every divorce. Sometimes the financial issues can become very emotionally charged. A well-trained experienced collaborative financial professional along with the help of other collaborative team members can help keep spouses on track. I encourage couples to the extent possible to look at these decisions as business decisions. It’s easier said than done but in the end it usually is a business decision. I am a firm believer that each spouse and their family are far more important than any numbers on a balance sheet or cash flow report. In my book and in my work people always come first before numbers. There are other important financial issues a financial neutral can assist with. Watch for part II of “Getting Unmarried: Money and Divorce.” There I will talk about marital and non-marital property, analyzing tax implications of various scenarios for child support and/or spousal maintenance; analyzing property and business interests, debt pay off scenarios, and comparing pros and cons of using one asset over another. Is a collaborative divorce process right for you? If you or someone you know may be looking for a divorce alternative without court click on this link to learn more:  www.collaborativelaw.org
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455422869Recently I received a referral from Kristin, a client I represented in 2011 in her collaborative divorce. In thanking her for the referral, I took the opportunity to ask her how she was doing. With her permission, her response is reproduced below. At the time of her divorce, Kristin and her husband had two (2) children ages 10 and 12. Hi Tonda, Nice to hear from you. I will fill you in with some detail for examples of what can lay on the other side of divorce to help you give hope to your clients going through this painful process. Everyone is doing well here; the kids are doing really well splitting their time between our 2 households (4 miles apart). Tom and I have a much better relationship now than when we were getting divorced. We talk several times per week and text, usually daily, mostly regarding kids’ stuff like coordinating activities/homework and just general parenting issues. We also try to meet for coffee sometimes to discuss things more in depth like holidays and vacation planning and kids’ milestones. We see each other at their basketball games, tennis matches, orchestra concerts, etc, even holidays sometimes, and usually sit together with our new spouses. Tom and I both got re-married a couple of months ago and Tom and his wife are expecting a baby in March. I married a pharmacist that I met after the divorce and we got married in Yosemite in August of this year. The four of us get along well and the kids get along well with both our spouses so I have nothing but great things to say about the collaborative process. It really helped us to avoid a lot of un-pleasantries and keep our family together without staying married, which is really great. I hope all is well with you and your practice. I will continue to recommend people look into collaborative divorce as an option. It has been very helpful to us to use the divorce agreement as a structure, but we stay very flexible with rearranging schedules, holidays and vacations etc. We have actually never even had an argument since the divorce. It has helped us build a sense of cooperation and the collaborative process really reinforced putting the kids as the center point for all decisions going forward. One of the things that always stuck in my mind through the whole process was that Tom and I decided that even though we did not have a successful and healthy marriage, we would have a successful and healthy divorce and be successful and healthy parents. Best, Kristin
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Former litigators who now practice exclusively collaborative law have varied reasons for that decision. Many revolve around better outcomes for clients or more peaceful processes. A reason that is less commonly talked about is the well being of the practitioner. A litigated divorce is often ripe with conflict and animosity. There is built in adversity and the very structure often leads to more anger and frustration. And, this is between the clients who are only going through this once. A divorce lawyer or other divorce professional deals with hundreds of these cases. They are often in the middle of many divorces and the animosity and anger can take a toll. A collaborative divorce, on the other hand, can be a more positive and less stressful experience. It is an out-of-court, non-adversarial process. The pacing of a collaborative divorce is controlled by the parties so no one is at the whim of a court’s schedule. Clients in collaborative divorce maintain control of the outcomes. Discovery (exchange of information) is done in an informal manner with full disclosure of whatever either party requests.  Because of these reasons and more, some collaborative professionals find a higher level of satisfaction and well-being in their work. Now, some may wonder why a potential client should care about their lawyer’s well-being? The professionals on a collaborative team are the guides and support for clients. A client going through divorce wants an attorney who is in the best position to guide them through that process. Collaborative divorce is a more respectful and peaceful option for clients. It is the same for the professionals. Doctor martin Luther King, Jr. once said, “The happier we are, the better we work.” I stopped litigating cases for many reasons. My personal well-being may be the most important one.
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182954950 This may sound like a joke . . . but it’s not. What do UPS trucks and collaborative divorce have in common? Both use innovation and creativity to solve standard problems in unique ways.   Almost all turns (90%) made by UPS truck drivers are right turns. According to the Washington Post, UPS drivers intentionally make three right turns, instead of one left. The company has found that left turns are inefficient due to waiting in traffic and there is more likelihood of accidents when crossing lanes of traffic. The company has saved money and lives by making three right turns for every left. UPS has used a unique (but relatively easy) solution to provide better outcomes. Collaborative divorce does the same thing for families. People divorce every day. Couples going through divorce have a choice, just like UPS drivers, to head straight into traffic or take a different path. In divorce, “turning left” and heading into traffic is often less efficient and potentially the more harmful route. Couples, however, can choose to head down a more unique and creative path – collaborative divorce. Collaborative divorce is an “outside of the box” option. Collaborative divorce solves the same problem as any other process – a divorce ultimately is a divorce regardless of how one gets there. But collaborative divorce is a different path. By engaging in interest-based negotiations, keeping goals at the center of the process, locking the courthouse doors, and working with trained professionals, couples can come up with unique and creative options that work for them. UPS has found a way to make the greater community safer and run its company more efficiently. Couples going through divorce can similarly influence our greater community. Innovation and creativity can lead to better outcomes for families.  Some particular areas often addressed in a collaborative divorce, include:
  • Unique child support or expense sharing arrangements based on historical costs/expenses
  • Tax consequences of support options and property division
  • Creative financing options for a second home (or two new homes)
  • Parenting plan that addresses communication about the children, introduction of significant others, in addition to parenting schedules
  • Tracing of non-marital property (pre-marriage ownership, inheritances, gifts, etc.)
  • Maximizing property for both spouses
With a collaborative divorce, you and your family can work innovatively and creatively to reach resolutions tailored to meet your needs.
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With so much at stake in a divorce, it is tempting to think about how to “win”.  Yet, the grim irony of divorce is that “winning” often leads to poor results.   I know that seems like a contradiction, but most divorce lawyers who, like me, have spoken with “winning” clients after a divorce, know that it is true.  Almost every “winning” client I have known during the past 30 years of divorce practice has expressed severe disappointment with their “winning” outcome.   The real “cost” of a litigated divorce (or even a divorce that settles on the courthouse steps) is so great financially, emotionally and, particularly for children, psychologically, that there truly are no winners. Does that mean that, when facing divorce, you should simply “give up” and let your spouse have whatever he or she wants?  Of course not.  Because there is so much that matters, you need to get the best possible outcome for you and your family.  So, how can you achieve that, without trying to “win” in the traditional sense?  By finding a smarter way to get your spouse “to yes”. Getting To Yes is the whole essence of divorce.  More than 95% of all divorces end in an agreement (and not a trial), so your divorce is likely to end in an agreement of some kind.  Therefore, the entire divorce process is one of seeking ways to get your spouse to say “yes” to the things that really matter. So, how do you get your spouse to eventually “say yes” to the things that are important to you?   It is tempting to think that you will get your spouse to “say yes” by hiring an aggressive lawyer to make bold arguments in your favor.  Tempting, maybe, but does that really work?  Is your spouse the kind of person who will respond to arguments by giving in?  Probably not.  On the other hand, if you are like the rest of the world, you will need to be much more strategic. The chances are quite good that the best way to get your spouse to say yes is to help them see that saying yes meets their interests.   This notion of ”interest based bargaining” is a way to truly “win” without having to make anyone lose.   This method of truly “winning” without creating losers is rapidly growing in popularity and is commonly used by Collaborative Divorce lawyers.  To find a Collaborative Divorce Lawyer in Minnesota who can explain this to you go to www.collabortivelaw.org.
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162527802In the list of life’s most stressful events, divorce is near the top of the list. Divorce can cause health concerns, sleeplessness, job performance problems, distraction, and short tempers. It can damage relationships with others and, obviously, can be very hard on children. People going through divorce often exert great energy trying to keep things together, while also trying to make decisions with long-lasting implications. It is important to find ways to lessen stress during divorce and keep calm. Here are four tips to managing stress during divorce:
  1. Find a professional team that makes you feel comfortable and you trust. A supportive team, starting with an attorney, will help you feel supported and more comfortable with the decisions you are making. Your attorney will be with you along the journey. Often your attorney will see you cry, get angry, and express fear. Other team members, like a financial neutral or child specialist, can also help you feel supported and help the process move forward in a positive manner. Your team should not cause you stress. Just the opposite – it should help you feel safe and lower anxiety.
  2. Focus on your own well-being. It is important to make sure you exercise self-care. Take care of yourself. Get sleep, exercise regularly, and reach out to friends for enjoyment and relaxation. The better you are personally, the better outcomes you will find in the divorce process.
  3. Be mindful of your future. Not knowing what the future holds can be stressful. Learn all that you can during this process about your future so you can alleviate this concern. Make sure you grasp the financial implications and parenting decisions being made. Ask lots of questions and keep your long-term goals in mind. The more you know, the more comfortable you will be moving forward.
  4. Consider a collaborative divorce. A litigation process – leaving decisions up to a third party – is inherently stressful. The adversarial nature of that process can add to the anxiety. On the other hand, negotiating outside of the courts and using a collaborative process can help you maintain control of the outcomes and help build a more positive co-parenting relationship.  You can learn more about collaborative divorce here.
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Minneapolis, MN
Minneapolis, MN
I just read a Forbes magazine article about the four methods of divorce: Do it yourself Divorce; Mediation; Collaborative Divorce and Litigated Divorce and it reminded of how lucky we are to live in Minnesota. Collaborative Divorce started in Minnesota in 1990 and is now recognized throughout the world as one of the four options. Collaborative Divorce is now being practiced in 24 different countries, on four continents and may be the world’s fastest growing alternative. Last week, I spoke to two divorce attorneys from Capetown, South Africa who will be coming to Minnesota for the entire month of May to study this new, groundbreaking method. Collaborative divorce is growing so rapidly for a reason; it works.  During my 30 years of practicing family law, I have handled thousands of divorces using every method available.  Today, I spend most of my time doing Collaborative cases because it gives my clients better results for less money; particularly when there are children involved. While I applaud the Forbes article for helping raise awareness about Collaborative Divorce, I do need to suggest one correction. The author suggests that Collaborative may not work as well when there are complicated financial situations or significant assets.  In fact, that is actually where Collaborative Divorce works best. I have handled many multi-million dollar Collaborative cases and those clients have generally obtained the best outcomes. Because Collaborative Divorce has a rule of full transparency and invites creative structuring of settlement, people with large amount of assets generally get even better outcomes. The rules of disclosure in a Collaborative case are more thorough than in other types of cases. The author of the article is correct in saying that Collaborative Divorce is not right for every case and that each person facing divorce should investigate each option before they choose. I completely agree with that advice and I would add one other critical element. In weighing each option, make sure that you speak with professionals who have substantial experience in each area. Getting information about Collaborative Divorce, or any divorce, from someone without training and experience in this area, can be reckless. To find an experience Collaborative attorney in your community who will fully explain Collaborative Divorce to you; go to www.collaborativelaw.org.
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Recently I received a LinkedIn endorsement from Christa, a client I represented in 2008 in her collaborative divorce.  In thanking her for her endorsement, I took the opportunity to ask her how she was doing.   With her permission, her response is reproduced below.   At the time of her divorce, Christa’s two (2) daughters were 16 and 17, and Christa only worked part-time. Hello Tonda, How nice to hear from you!  Life has been good on my end.  I’ve move forward professionally and personally–continued to work in psychiatric research, first part-time and then, for the past 4 years full-time.  In addition, I’ve been building my private counseling practice, which led to 60+ work hours per week.  The practice is going well enough that I was able to resign my salaried position effective this November. It’s not easy leaving a place that feels like a curious and lovable community, but for the sake of living a full life, choices needed to be made. In October 2008, a mutual friend introduced me to a man who is now my husband.  He was married before and has 2 children–his son is the same age as my oldest daughter (23), and his daughter is 15.  We were married February last year (2013) on Key West.  Almost my entire family came over to be there for us–including some nieces and nephews.  It was lovely. Two weeks later, my former husband got married as well to a woman he had been dating since our separation. The girls are doing very well.  My oldest daughter will be graduating this coming spring with a major in education and mathematics.  My youngest daughter will graduate next December, and then plans to get her MA degree in child psychology.  After struggling with grades and transitions the first year, they have both become straight-A students. My youngest daughter said something interesting the other day while we were driving.  She said, “Mom, I can’t even imagine you and dad being together anymore; it’s not like I don’t remember, but you guys are so different, and all my friends can’t even believe the two of you were ever married.  I mean, how did you make it work for so long?” Today, both my daughters see the benefit of their parents having divorced and moved on.  My former husband seems happy, has a good relationship with his daughters and brought a great woman into his life.  I’m happy as well, and likewise have a wonderful connection with my daughters.  Both daughters are relieved they don’t have to worry about either one of us, and both of them like our choice of new partners. Everyone is well and happy.  I’m very grateful for the part you played in giving me the information and support I needed to take the step toward divorce that had frightened me so much.  Not once did I regret this transition.  I appreciate the divorce process was not hostile. You were calm, wise and nurturing when I was in the grips of anxiety. Sure, there were hurt feelings and it’s very stressful going through this process.  However, it left two people free to move forward and build a meaningful life.  It also freed our children from the worry they had for parents who just could not be happy together. So: thank you, thank you, thank you!!! All the best, Christa
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  When Gwyneth Paltrow and Chris Martin recently announced their breakup as “consciousuncoupling”, they created quite a buzz. Comments both positive and negative streamed forth into the media. While many applauded the honesty and civility of the couple’s joint post, others were more critical, wondering, for example, whether conscious uncoupling is simply “breaking up for vegans.” As a family law attorney focused on helping families in transition, I was impressed by the couple’s joint statement. Acknowledging that they “are and always will be a family” and that they “are parents first and foremost” reveals an elevated level of consciousness. By making the public aware of a kinder, more generous approach to divorce, my hope is that this celebrity couple is raising the awareness of others considering divorce. While I understand that conscious uncoupling can refer to a variety of processes, the core principles include acceptance of mutual responsibility for the past and discussion of shared goals for the future. Divorce presents an opportunity for each partner to gain insight into his or her own patterns of behavior and how those patterns impacted the relationship. The Collaborative divorce process encourages conscious uncoupling. A neutral coach can help couples honor their feelings of grief and anger and develop a relationship plan for the future. Creating an honorable ending to one relationship improves the outlook for future relationships. If the family has children, they, too, will benefit from their parents’ healing and improved communication.
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I just finished watching the documentary, Divorce Corp, and I have to admit that I have mixed feelings. On the one hand, as someone who has devoted his career to helping people understand that divorce should not occur in court, or even in the shadow of the courthouse, this movie may be a powerful tool in raising awareness of this very serious issue. On the other hand, as someone who feels dedicated to the truth and who feels a deep commitment to helping people fully understand their options in a fair and honorable manner, I bristled at some of the sensationalism and the broad generalizations made from some extreme examples. To the extent that the movie attempts to show that the problem with our family law system is that it is inundated with corrupt judges, greedy lawyers and dishonest custody evaluators, I need to state very clearly that I do not believe that to be true. Having worked in the family law system in Minnesota for more than 30 years, including two decades in court, I have found that the majority of judges, divorce lawyers and custody evaluators are honest people who care about children. Indeed, one of the reasons I strongly believe that the adversarial system does not work in resolving family issues, is that operating in the shadow of an adversarial system often damages families even when you have good people involved. There is much need for reform of our system and there is a strong need to raise awareness about the alternatives to court.  I had hoped that the movie would help people understand the existing alternatives to court rather than focusing almost exclusively on proposing legislative changes. To the credit of the movie makers, they did feature excellent commentary from two very credible peacemakers that I have come to know quite well. Woody Mosten and David Hoffman, two law professors who are worldwide leaders in mediation and Collaborative Practice, gave the movie producers valuable insights on how we can help families find a better way. While very few of those insights made it into the movie, the producers did release a trailer that discussed the benefits of mediation and Collaborative Practice as alternatives to court. An article by David Hoffman also does a good job summarizing many of the shortcomings of the film. As for the rest of the movie, I am recommending that people see the movie and draw their own conclusions. Even if you disagree with some of the exaggerations and proposed solutions, as I clearly did, it will at least get us all thinking and talking about this important issue. If you happen to be someone who is facing divorce, you should not emerge from this moving believing you will have found any answers or even a real grip on the truth of our family law system. Rather, my hope is that the movie will cause you to respect the important question about how to proceed with divorce so that you will seek out reliable information about all of your options. To learn more about Collaborative Law and other options that I believe are not clearly understood, go to www.collaborativelaw.org and www.divorcechoice.com.