Why A Financial Specialist is Vital in Divorce

In most traditional divorces, it is up to the couples and their attorneys to value the marital assets and determine a financial settlement. In some cases -- for example, when there is a family business -- an outside consultant may be called in to value the business and provide scenarios to determine future ownership and compensation to the other party.

But in most cases, it's the parties themselves -- either with, or without the assistance of their attorney -- who end up valuing assets. And this can be a difficult job. When a family member went through this process a few years ago, I saw how difficult this could be. Even "objective" measures for valuing items -- for example, using the Kelly Blue Book value to determine the valuation of a vehicle -- can be subjective. One spouse who wants to retain an asset may claim that there is more "wear and tear" on the item, and therefore, it's worth less. Spouses may disagree on how current value should be measured. A bedroom set purchased the year before for $1700 may be worth $500 (if that's what similar items are selling for on Craigslist) to the spouse that wants to keep the item -- or $1250 to the spouse (similar items sell in a local used furniture store) who will likely be compensated for the value of the item.

Then there are the "intangibles." Like claiming the children as a tax deduction. What is the value of the deduction? It can be more than what you think -- or less. It might have more value to a self-employed parent, or to a parent who wishes to claim additional tax credits (for example, the HOPE credit). A financial specialist can be extremely useful in running projections for different tax scenarios and providing objective guidance on this intangible "asset" (the child exemption).

Each collaborative divorce in Nebraska includes a financial specialist for this very reason -- to help the parties assess the financial implications of the divorce-related decisions they will make. And, to avoid dueling assessments, the parties share a financial specialist, who objectively assesses the issues at hand.