Collaborative divorce gains popularity as way to ease pain and suffering.
Divorce can do much more than officially shred a
marriage certificate. The dissolution can create emotional bleeding
that may never heal among the parents and the children, who must
somehow move on with their lives. And the financial impact of blowing a
marriage apart can leave behind as much destruction as a mushroom
cloud.
Which is why an increasing number of attorneys,
therapists and financial experts who work with divorcing couples are
advocating that their clients choose a more productive and less hostile
way to dissolve a marriage. The path less traveled is called the
collaborative divorce process, which is growing in popularity across
the country among professionals and their feuding clients.
While no one knows how many couples are terminating
their marriages using the collaborative process, membership in the
International Academy of Collaborative Professionals, which is an
umbrella group for experts working in the divorce field, is doubling
every year and is now close to 1,300. Professionals in at least 35
states have embraced the collaborative process. "The collaborative
divorce phenomenon is growing by leaps and bounds across North America
as the process is becoming more and more known," says Bob Bordett, an
IACP board member and a certified financial planner at Consolidated
Planning Corp., a boutique investment advisory firm in Atlanta.
At first glance, the ground rules that an unhappy
couple must agree to follow during this collaborative process may sound
laughable for two people who long ago stopped sharing confidences, much
less bathrooms. Couples who select this approach must agree in writing
not to go to court or threaten to make that move even if things don't
appear to be going their way. A spouse who breaks that promise will
quickly find him or herself all alone. The attorneys and other
professionals, who had been guiding the spouse through each step in the
divorce, will disappear.
The key word in this approach is collaboration,
which means husband and wife must check their howitzers at the door.
Instead, they agree to negotiate all aspects of the divorce. The aim is
to break up in a way that strives to take into account the highest
priorities of each spouse and any children. Mutual respect is crucial,
and husband and wife are expected to be honest with each other. That
means, for instance, if one of them was having an affair that made them
want the divorce, that fact needs to be revealed. And obviously, hiding
assets or being less than candid when talks turn to money is a no-no.
Keeping the divorce process civil can be a
challenge. An embittered wife, who discovered her husband's infidelity,
isn't going to be preoccupied with getting the cheater's emotional and
financial needs met. Which is why the collaborative process relies
heavily upon a team of professionals who can keep the couple walking
down the path to an equitable and emotionally healthy divorce while
defusing the anger. If the couple can pull this off, they could
increase their chances of not falling into the same trap again.
At first glance, the number of people necessary for
this type of breakup might seem to rival Michael Jackson's entourage.
Each spouse will have an attorney, but the lawyers work together and
share all information. In addition, the husband and wife ideally will
have a divorce coach, who will help with emotional issues and get the
process moving again when arguments occur.
Furthermore, a specialist will work with the
children. Having a therapist or psychologist help the kids is important
because they can be so traumatized by the breakup and fearful of losing
one or both parents' love that they will say whatever they think mom or
dad wants to hear. A large body of research has shown that children of
divorced parents, and particularly those who left on bitter terms, are
more likely to abuse drugs and alcohol and have relationship problems
as adults.
What's also unusual with a collaborative breakup is
that the couple shares a neutral financial specialist to sort out the
money issues. This person could be a certified public accountant, a
certified financial planner, chartered financial consultant or some
other financial practitioner. The financial expert will look at a
family's entire financial picture before providing advice on how to
value assets, such as pensions and stock options, and how to split
them. The professionals who provide this service are paid by the hour.
Just how much the financial expert charges will vary
by region and experience, but Bordett estimates that fees typically
range from $125 to $250 an hour. Andrew K. Hoffman, a fee-based planner
in Covington, La., who devotes a great deal of his financial practice
to collaborative divorce, says he spends ten to 12 hours on a typical
case.
One of the big perks for going the collaborative
route is that a couple gets to make decisions jointly, on such things
as child support, custody and what to do with the house, instead of
relinquishing that power to a judge. The only court action occurs when
the final paperwork is filed to obtain the formal uncontested divorce.
Another advantage is that it levels the playing field for a spouse who
was dominated in the marriage or who knew little about the family's
finances. Negotiable divorces, however, won't work for everyone. It's
likely that a divorce will wind up in the courts if one or both spouses
suffer from mental illness, experience drug or alcohol problems, or the
marriage was disrupted by domestic violence.
With so many professionals involved in the
collaborative process, you might assume that the cost will be
prohibitive. That's not necessarily so. The price tag will be higher
than if a couple hashed out the divorce by themselves. Doing that, of
course, could hurt one of the spouses financially. What's more, the
emotional and professional needs of the husband and wife probably
wouldn't be explored in a traditional divorce.
Working collaboratively can be much cheaper than
waging a contested divorce that requires the court's intervention. Stu
Webb, a family-law attorney in Minneapolis who launched the
collaborative law movement in 1990, estimates that a collaborative
divorce will cost about a third of a garden-variety contested divorce.
In contested divorces, court and legal costs can add up quickly. A
couple of battling attorneys, for instance, might sit for hours in a
courthouse waiting for their case to be called. Guess who pays for
those billable hours?
Cinda Jones, a certified financial planner at
Divorce Financial Solutions in San Diego, says she's seen collaborative
cases cost between $5,000 and $20,000, depending upon the complexity of
the case. "People will say, 'Yikes, that's a big investment,' but it
could involve the biggest financial decisions they make in their whole
lives," Jones observes.
With roughly half of all marriages ending in
divorce, plenty of opportunities exist to get involved in this
financial-planning niche.
If you're interested in learning more about
collaborative divorce opportunities, a good place to start is with the
International Academy of Collaborative Professionals, which is an
educational and networking organization in Novato, Calif.
(www.collaborativepractice.com). The six-year-old organization has
developed voluntary professional standards, including recommended
training, for attorneys, mental health and financial professionals to
bring some uniformity to this burgeoning field. One way to obtain
specialized training is to earn the designation of Certified Divorce
Financial Analyst through the Institute for Divorce Financial Analysts
(www.institutedfa.com).
The IACP can also connect you to collaborative
groups near you. The IACP knows of roughly 150 local groups, but it
acknowledges that there are probably many more out there. Local groups
will have their own requirements for new members and may be able to
provide training opportunities. Joining a group in your area is only
half the battle. After signing up, you'll need to convince other
members of your expertise. Once you earn the respect of your
colleagues, they are more likely to invite you to work on a divorce
case or suggest that a potential client choose you as the financial
expert.
Hoffman says the best way to attract clients is to
network with attorneys who practice collaborative divorce. He began
meeting divorce attorneys by attending legal continuing education
classes several years ago. "The lawyers couldn't figure out why a
non-attorney would be there, but I spent as much time with the
attorneys as possible," he recalled. Building trust among the lawyers
was a slow process, but ultimately rewarding. "Family-law attorneys
know each other very well, and in most areas they don't easily accept
outsiders. You have to prove yourself." He got his break by offering to
analyze pensions for divorce cases when he discovered that attorneys
typically dislike dealing with defined-benefit issues because of the
math involved.
In validating Hoffman's experiences, Webb says he
hesitates recommending other professionals until he knows them. He says
newcomers would do well to take more established practice members out
to lunch to introduce themselves and discuss their professional
backgrounds.
Another resource you may want to sample is the
ListServe group of collaborative practitioners, which was established
by a former IACP board member. You can find the link to this group at
the IACP Web site or by visiting
http://groups.yahoo.com/group/CollabLaw/.
Before seriously exploring this financial niche, you
should be aware of one potentially significant downside if you want to
seek and maintain IACP membership. A divorce client, who is impressed
with your work, can't sign on later as a regular client. "If I've done
a fabulous job and Mr. and Mrs. Jones loves me and the wife wants to
continue working with me, I can't because I'm neutral," Bordett
laments.
Once the divorce is settled, the client must contact
someone else for ongoing financial help. The logic behind this
prohibition is that it ensures that the financial professional doesn't
play favorites with husbands or wives who have indicated that they'd
like to remain clients after their divorces are history. It also avoids
favoritism allegations in the future, if the former couple needs to
revisit their divorce agreement. When this issue arises, Bordett
recommends other financial professionals. He, however, is on the
referral list of colleagues, who face the same limitations.
Despite this drawback, Bordett is sold on
collaborative divorce. The process, he says, "provides the best way to
split up. I enjoy being able to help people by being able to work
outside the box."
Lynn O'Shaughnessy is a syndicated
financial columnist based in San Diego and the author of three books,
including Retirement Bible (John Wiley).