I am often asked to give presentations on the financial issues in divorce. I always cover what I refer to as the two financial pillars of any divorce dividing property including debts and cash flow and support. Without fail someone in attendance always asks where, do I begin? I do not know where to start. This question is asked not from a financial viewpoint but from an overall perspective of where to begin.
My response is virtually the same every time. The most important decision you have to make is the decision to end the marriage. Some take months or even years to make this decision. It is not an easy one.
If the decision is made to divorce, then the next most important decision is how to do it. What process options are available and which might be best suited for me, my spouse, and if children are present. Again not an easy decision, especially since these types of decisions are often made during times of high emotions including hurt, pain, and even anger. This is not necessarily the best frame of mind for making such life changing decisions.
Having experienced divorce after a 30-year marriage and in my professional experience as a financial neutral, financial mediator, and supporting individual clients and their attorneys, the answer where to begin may be somewhere not so obvious, a divorce coach trained in collaborative divorce. I say this not because you will end up or be steered to a collaborative divorce, but rather that a divorce coach can help you and your spouse navigate the emotions and challenges during any divorce process and beyond.
A collaboratively trained divorce coach can help explain process options in a manner to help you no matter what process you may choose. A neutral divorce coach can also help recommend other divorce professionals including a child specialist, financial specialist, and attorneys who can work together with you and your spouse in any divorce process. In addition, a divorce coach can help save you time, money, and heartache by guiding you and helping you manage emotions throughout the process.
How do I find a collaboratively trained divorce coach? Click here to find coaches throughout the MSP metro area. By clicking on their name, you can read their profiles. Many, if not all of them, will provide a free initial consultation allowing you to ask questions, evaluate each individual and make informed decisions best suited to you and your family. Divorce coaches are one of the best resources available to anyone considering divorce and wondering “where do I begin.” 
Collaborative law requires experienced professionals and clients willing to work together to find resolutions for their family law matters. It is a unique, non-adversarial process that provides an alternative to a traditional, litigation. It is a respectful process that depends upon four main tenants.
- Full Disclosure. In a collaborative law both parties provide all information relevant to the case. There are no formal discovery processes – no time or money spent on depositions or document requests. Both parties provide everything needed – if someone needs more, they ask and agree to disclose it. Both parties must have all the information they need to generate options and make decisions.
- Confidential Process. The information discussed an the options generated are confidential and shall not be disclosed until final resolutions are reached. Divorce is not a confidential process by default. Indeed, the court process is quite transparent. In collaborative, however, the information discussed and shared is not disclosed until the very end. This provides for a more thorough process overall.
- Neutral Experts. All experts shall be neutral. They will be chosen by both parties together (often recommended by other professionals) and operate in an on-adversarial manner. Their expertise benefits both parties.
- Professionals Limited in Representation. The collaborative professionals on a case can only work in one role – settlement. The professionals cannot represent you in any other matter and in any other capacity. Your collaborative attorney cannot represent you in a court process. A mental health professional (child specialist or coach) cannot provide therapy. And the financial neutrals cannot also solicit your financial planning business. Everyone has one purpose and one role – to help you find collaborative resolutions.
Can you get what is fair in your divorce?
Many people start by telling their attorneys that they want what is “fair” in the divorce only to be told that this is not realistic. “Fair is what happens in St. Paul for 11 days before Labor Day” is the common expression aimed at averting divorcing people from striving for a fair settlement.
I understand those concerns about “fair”. Divorce can be so emotional that nothing presented as a settlement offer will be regarded as “fair” and settlement discussions can therefore drag on forever. Indeed, if you are faced with a divorce that you do not want, the notion that any proposal is “fair” can seem offensive or even inflammatory. Also, in settlement negations, “fair” is often used as an accusation. “I have offered something fair. Why won’t you accept this?” Of course, in a divorce a husband and wife are likely to have different understandings of fair. Describing your offer as “fair” as compared to your spouse’s offer, (which by implication must be unfair), is likely to feel insulting to your spouse and will not be productive.
Despite all of this, I think it may be a mistake to discard notions of fairness altogether. Indeed, while we all have different ideas about what truly is fair, it is important, sometimes even crucial, that certain things seem fair, at least to a degree. A divorce settlement that one or both parties strongly believe is unfair is likely to unravel or create problems if it is not addressed. Indeed, the success and durability of a divorce agreement may depend a great deal on whether the agreement is viewed as fair by the parties.
To get an agreement that is durable in the future, it may be important to pay some attention to what you and your spouse perceive as fair. At the same time, in order to get past the gridlock that arguing about fairness can create, it is equally important to be flexible in our ideas of fairness and to work toward getting a better understanding of what lies underneath the feeling of unfairness. If the sense of unfairness has more to do with an unmet emotional need, (which is common in divorce), it may be helpful to seek the assistance of counselors or coaches to help you think of how those needs can be addressed. Similarly, if there is a tangible part of the divorce agreement that feels fundamentally unfair to both spouses for legal or financial reasons, it may be necessary to go deeper into their understanding of the finances or the law to help address some of these fundamental concerns.
The great challenge in the divorce world is that, generally, you are dealing with areas of scarcity and loss and narrow definitions of fair can almost never be met. However, for people who are willing to practice some measure of empathy and to work to try to view the fairness through the lens of the other spouse, notions of fairness can be a powerful tool toward finding resolution. For more information on how this can be done, and for professionals with skill in addressing these issues go to www.collaborativelaw.org or www.divorcechoice.com. 
As a confirmed New Yorker subscriber, I enjoy the cartoons as much as the writing. Indeed, the cartoons alone would justify my subscription. Earlier this year, there was a drawing of a customer addressing a florist.
“I want some flowers that say, ‘Here! Have some frickin’ flowers!'”
For a lot of couples about to enter into a dissolution of their marriage, the holidays are a time of high anxiety. Often, both spouses know it’s coming–soon–but call a truce in order not to wreck the children’s Christmas.
According to some of my former clients who have done that, the whole holiday season felt like, “Here! Have a frickin’ truce!”
Tense, hollow, sarcastic. Anxiety-ridden, courtesy of the Unknown.
A close friend who knows about my practice once asked me, “What’s the most important thing you can tell someone who comes in to see you about a divorce?”
“Well, it will depend on what’s most important to that person at that moment, but, generally speaking, I’d want them to know it’s going to be all right,” I said.
“Isn’t that a little misleading? I mean, you don’t know anything about who they’re married to, or who that person’s lawyer is, or anything.”
“Well, I know this: when they talk to me, they’re living in a situation that’s become unbearable, a situation they know very well. And it’s bad enough that they’re talking to me about an Unknown–the divorce–that they’d rather deal with. I actually did once ask a client who was complaining about how long it was taking and how much it was costing whether he’d like to dismiss the action and stay married. He looked at me like I had two heads. ‘Not on the longest day you live,’ he said.”
So the goal was not an issue. By the way, that was before I began doing Collaborative cases. But my point is that the divorce itself will end some day, and probably in less than a year. And after it’s over, that person will go on with their life.
Most of the time, the people who come to me know that I do mostly Collaborative cases, where the couples have to agree on what happens before anything can happen, and where the goal is to agree on all the terms of the divorce. So they each have to give their spouse a reason to agree to what they’re seeking. More importantly, they have many opportunities over the weeks of that case to refine the conversation, discover what’s at the heart of their goals, and explore different ways of satisfying their spouse’s interests.
The upshot is that by the time they do reach all their agreements, they have talked everything through–usually multiple times–and they have a set of agreements they can live with. And things going forward are going to be all right! They can take some reassurance in that because their discussions were all based on their actual situation, not what they wish their situation was. They’ve spoken with their lawyers and they understand what the courts can do and what they won’t do.
In the Decree, under “real estate,” the court simply can’t award to the spouse who had an affair “the hottest corner of Hell.” For one thing, there’s no legal description. But if their husband or wife insists that this is the only appropriate residence for them, post-decree, I know that person will never succeed in a Collaborative case. I also know that person won’t “succeed” in court, either. And, finally, I know that person could care less if things turn out “all right,” because their highest priority is to give back the pain they feel to the person who, they believe, caused it. They almost certainly will get more help from a therapist than a lawyer.
But for the potential client who is most interested in ending their marriage, attending to their affairs, and starting a new life, history teaches us, time and again, that, really, it will be all right.
At least, that’s what my clients tell me. 
This time of year (between Thanksgiving and Christmas/Hanukkah) can bring extra challenges for couples going through divorce. Here are some things to keep in mind if you are in the middle of the process.
- Focus on the positives. Even though there may be conflict and pain, keeping a positive outlook and good attitude can help the holidays feel less tense. Fake it if you need to – sometimes the “pretend” attitude will actually make things feel easier.
- Keep the children out of the conflict. If you have children try and make the holiday special for them by avoiding conflict. If you need to work with a counselor or child specialist in order to make it through the holiday, do so. Whatever you can do to make the children feel special will is important for their well-being.
- Take part in tradition if you can, otherwise, bow out gracefully. Take part in traditions and family events if you can comfortably. Sometimes, the discomfort is too great. Instead of fighting through it, you can avoid the conflict and let people know “I am not comfortable attending, but wish you all the best.”
- Remember how you spend this holiday does not need to be precedential for future holidays. Talk to your attorney or family specialist on parenting time schedules and holiday planning. While you are In the middle of the process, you may agree to temporary parenting schedules to try out certain arrangements to give the children consistency during the process. More permanent arrangements can be made later.
- Find comfort in your spiritual beliefs. If you are religious or have a faith-based practice, utilizing those resources and beliefs can be helpful in difficult times. Sometimes thinking about the meaning behind holidays can be more meaningful and enjoyable, than the celebrations.
- Set new traditions. The holidays during a divorce may be the first opportunity to try new things. Maybe it is the first year you cook the turkey or maybe you start a new Christmas Eve tradition if your parenting schedule allows for it. This may be an exciting opportunity.
- Be kind. Whatever your religious beliefs, holidays are often about love, kindness, and celebration. Spreading cheer may help you to feel better and may make the world around you a little brighter. Such positive energy may be just what you need to get a lift during the holidays.
The secret to a constructive and respectful divorce is to start at the end and work backward. Ask yourself, “What do I want my life, my spouse’s life, and my children’s lives to look like when the divorce is all over? What is my vision for the future?”
- Children/Family We want our children and ourselves to feel that we are a family that loves and cares for each other.
- Relational We want us to look back on this difficult time and be proud of how we handled ourselves and each other. We want both of us to be happy in the future.
- Financial We want our final agreement to ensure equitable life styles and standards of living. We want our final agreement to provide financial security for both of us in retirement and in the event of the death of either of us. We want our final agreement to respect the financial decisions/intent of our respective families to leave us money.
- Process We want a divorce process that supports a positive future. We want a divorce process in which we both feel heard and safe to discuss difficult issues. We want to be comfortable with our final agreement and to have a mechanism for implementing it. We want our divorce process to be cost effective and efficient. We want to minimize the emotional and financial stress of our divorce.
- Children For our son to have a solid, cohesive parenting team who loves him. For our son to be shielded from the negative aspects of the divorce.
- Financial For both households to have financial stability and security. For us to be debt-free by using an intentionally controlled plan of action.
- Relational/Emotional That we create a trusting relationship with each other and the potential for friendship. That we reduce the emotional and financial stress we feel as a result of our divorce.
- Process That the collaborative process be as cost-effective as possible while obtaining the added value that our neutral professionals bring to the process.
- For our children not to feel divided.
- For our children to feel comfortable with both of us.
- For us to convey a sense of harmony to our children.
- To have financial security for both of us.
- To get along with each other after the divorce; to have mutual respect for each other; and to have a pleasant relationship.
Co-parenting can be exhausting, especially if your communication skills while you were married were not great to begin with. During your divorce you may have asked yourself, “If we couldn’t communicate effectively while we were married, how are we going to when we are divorced?” It can be extremely difficult to get past the painful history you may have with your ex and overcome any built-up resentment. However, it can be done and it should be for the sake of your children. Below are three areas to work on to build more effective co-parenting communication skills.
- The Blame Game. Are you guilty of the “blame game?” In our household every time something went wrong blame had to be placed on someone. Late to an appointment – somebody’s fault. Food too spicy – somebody’s fault. Sidewalk is slippery – somebody’s fault. I just couldn’t understand why we had to place blame on someone for everything. It’s ok to be upset about something without having to constantly blame someone. Did your child forget to finish a school project while at his dad’s house? Sure the natural reaction is to blame your ex, but rather than focusing on who is to blame for something going wrong, focus on how to fix it. Co-parenting takes team work, and pointing fingers doesn’t work well on a team.
- Moving On. Put the past behind you. Sure you are still hurting from “XYZ…” but until you are able to put it behind you it will continue to come up and with continue to debilitate your co-parenting skills. If you are having trouble and haven’t already sought out therapy or counseling, please do so. Going to therapy doesn’t mean you are excepting blame for something that may have happened in the past, but rather seeking therapy means you are electing to seek out healthy ways to put the past behind you.
- Think before you speak. Divorce and co-parenting are full of emotions. It’s easy to act and speak in the moment and later regret it. We can’t always be intentional with our words, but there are times that we can take a step back and carefully choose our words. For example, it is too easy to rattle off an emotional email in the heat of the moment, instead make a vow to yourself that before responding to an email you will wait one hour to respond or go for a walk before responding.
The world is full of divorce experts willing to give you “free” advice about how to handle your divorce. Divorce is so common today that everyone from your hair stylist to your parents are likely to have advice about how you should handle your divorce.
There are several reasons why this amateur advice is almost always detrimental. Here are just a few:
- Lacking Context. The opinions that most people have about how to divorce is significantly biased by a small slice of information that is out of context. A divorce usually involves numerous issues. It is very difficult to know how one issue should be handled without having a thorough understanding of all of the other issues. Skilled divorce attorneys can help put these issues in context in ways that will help you get a better settlement.
- Emotional enmeshment. Many of your friends or families members may have an emotional reaction to your divorce that will alter their advice. Often that emotional reaction triggers a desire to protect you by urging you to take a more aggressive stance. This generally leads to stirring up acrimony that will actually make it more difficult for you to achieve your highest goals.
1. Forcing Your Kids to Take Sides
The last thing a parent wants to do during a divorce is to cause more pain for the children. Divorce is a painful time during which many negative emotions can arise, including anger, fear, regret and grief. Often there is a perceived need to blame the other party for one’s unhappiness, together with a desire to hold your children close. However, keep in mind that putting your kids in the middle is harmful to them. Resist the urge to blame and criticize your spouse in your kids’ presence. Don’t force your kids to take sides or to report on the other parent’s activities. No matter how difficult it may seem, the best thing you can do for your kids during a divorce is to remind them that both of their parents love them and will always be there for them.
2. Engaging in an Adversarial Divorce
Divorce is a major life event. It is the legal recognition that your marriage is over. Unless your situation is unusually simple (short marriage with no children and few assets and liabilities), each party should have an attorney to provide advice and to make sure that the required documentation is accurate and complete. For most couples, the divorce process can be completed without setting foot in a courthouse. Using skilled neutrals in the Collaborative Process or mediation helps to avoid the polarization that often takes place in more adversarial processes. Better post-divorce communication, lower divorce costs and less resentment are other benefits of no-court divorce processes.
3. Having Unrealistic Financial Expectations
Divorce means creating two households in place of one. Most couples are struggling to make ends meet before separation. Creating a plan to support both households can be challenging. Unless income can be increased, down-sizing and belt-tightening are often required. There must also be a plan to pay divorce costs. Understanding these challenges going into divorce can provide both parties with a reality check and allow the divorce process to go more quickly and smoothly.
4. Forgetting to Consider Tax Implications
Many of the financial decisions made in divorce have tax consequences, some more obvious than others. When dividing marital assets, it is important to recognize that some assets may actually be worth less than face value due to future income tax liabilities. Most retirement accounts, for example, have been funded with pre-tax earnings, meaning that withdrawals will be taxed and, depending upon the timing, may have early-withdrawal penalties as well. Stock portfolios will likely be subject to capital gains taxes upon liquidation. On the cash flow side, dependency exemptions and characterization of support payments (child support or spousal maintenance) impact the amount of after-tax cash each party has available to meet living expenses. It is essential to get competent advice during the divorce process in order to avoid unexpected surprises down the road.