The financial neutral in a collaborative divorce is in a unique position. Unlike the attorneys who each represent one of the parties, the financial neutral works for both parties. Working with both parties may reduce the tension that is present in a divorce since each party views the financial neutral as their representative.
The primary purpose of the financial neutral is to help a divorcing couple incorporate their individual financial priorities into a plausible and realistic financial solution that they can live with.
This is accomplished by first gathering all of the financial data from both parties. This alone may reduce mistrust by the party that has not been directly involved in the financial aspects of the marriage, a common arrangement in many marriages.
Once the data is gathered, both parties are in a position to assess their future paths. They are also in a better position to assess the consequences of their decisions. The computer software provides an invaluable visual aid at this point.
In some divorces there is a large gap of financial knowledge between the parties. The financial neutral, with the permission of the entire team, may provide important and useful supplemental financial planning advice for one or both parties so that the next phase of their lives will be better understood by them.
Throughout the divorce process the financial neutral will be able to show, in real time, the impact of various asset division proposals and expected budgets. This is accomplished through the use of sophisticated computer software which integrates current interest rate levels, expected equity market returns, inflation trends, and tax policy.
Finally as the divorce approaches the final settlement phase, the financial neutral provides valuable and important checklists of financial changes that need to be undertaken before or shortly after the financial decree is signed. This includes review of beneficiary designations on insurance policies, pensions, investment accounts, as well as estate and medical directives.
Last, where needed, the financial neutral helps to recommend future financial specialists for one or both parties.