Maximizing Financial Outcomes in Collaborative Law Cases

4/1/2024

Collaborative law is an alternative method of dispute resolution in divorce and family law that allows parties to come to a settlement outside of the courts. Both for the attorneys who practice collaborative law and for their clients, there are several obvious benefits to this method of approaching divorce, including minimizing the emotional and financial stress on families. We’ve highlighted some of the most important benefits below to further enhance your understanding of this topic and provide actionable insights for your practice.

1. Preservation of Assets: Collaborative law aims to find mutually beneficial solutions rather than pursuing aggressive litigation tactics. This approach can help preserve assets for both parties involved in the dispute, as resources are not unnecessarily drained on legal fees and prolonged courtroom battles.
2. Faster Resolution: Collaborative law generally leads to quicker resolutions compared to litigation. By fostering open communication and cooperation between parties, collaborative law can expedite the decision-making process, allowing your clients to move forward with their lives more swiftly and with less financial strain.
3. Tailored Solutions: In collaborative law, parties have more control over the outcome of their dispute compared to traditional litigation, where a judge makes the final decision. You can work together with your clients to craft tailored solutions that meet the unique needs and priorities of all parties involved, leading to more satisfactory outcomes and potentially reducing the risk of costly appeals.
4. Preservation of Relationships: One of the most significant advantages of collaborative law is its focus on preserving relationships, especially in family law cases. By promoting constructive dialogue and cooperation, collaborative law can help minimize the emotional toll of the legal process, which can ultimately lead to better long-term outcomes for families and individuals, both personally and financially. 

Below, we explore ways that working with a financial advisor can amplify the benefits of collaborative law for you and for your clients.

1. Advanced Financial Strategies: Above, we touched briefly upon the cost efficiency and asset preservation benefits of collaborative law. However, there are more advanced financial strategies that you can utilize to optimize outcomes for your clients in collaborative cases. These may include tax optimization, asset valuation techniques, and creative financial structuring to achieve fair and equitable settlements. As a financial advisor with expertise in these areas, I am well positioned to collaborate with attorneys to implement these strategies effectively.
2. Mitigating Financial Risks: While collaborative law offers numerous advantages, it’s essential to be mindful of potential financial risks inherent in any legal proceeding. From unforeseen tax implications to complex asset division issues, navigating these challenges requires careful planning and expertise. By partnering with a financial advisor, you can proactively identify and mitigate these risks, ensuring that your clients’ financial interests are protected throughout the collaborative process.
3. Comprehensive Financial Planning for Life After Divorce: Divorce is not just a legal process—it’s a life transition that can have significant financial implications for individuals and families. As an attorney working in the best interests of your clients, you may feel that your role extends beyond resolving legal disputes to helping your clients navigate the financial complexities of divorce and plan for their futures. By working closely with a financial advisor, you can offer comprehensive financial planning services to your clients, addressing issues such as budgeting, retirement planning, and asset management post-divorce, thus providing added value and peace of mind.
4. Building Collaborative Partnerships for Success: Collaborative law thrives on effective collaboration not only between parties but also between attorneys and other professionals involved in the process. By forging collaborative partnerships with financial advisors, you can leverage each other’s expertise to achieve optimal outcomes for your clients. I am committed to working with attorneys to provide tailored financial solutions that align with their clients’ legal objectives and enhance the overall efficacy of the collaborative process.
5. Continuing Education and Support: As the landscape of collaborative law and financial planning evolves, ongoing education and support are crucial for attorneys to stay ahead of the curve. As a trusted financial advisor, I am dedicated to providing you with regular updates, resources, and training on relevant financial topics, empowering you to deliver the highest level of service to your clients and maintain a competitive edge in your practice.

Collaborative law presents a unique opportunity for you to achieve favorable outcomes for your clients while minimizing their financial and emotional costs. By partnering with a knowledgeable and experienced financial advisor, you can unlock additional value for your clients and enhance your practice’s effectiveness and reputation.

About the Author:

David A. Emery is a Senior Financial Planner with the Planning Capital Management Corp. He has provided wealth management and financial planning services to clients in the Philadelphia area since 2003 and holds the Certified Divorce Financial Analyst (CDFA®) designation, in addition to his CFP® certification. He has had extensive training in both Collaborative Law and Mediation.

He has extensive expertise in:

Retirement income planning: Helping families understand where they are financially, where they want to go, and how to get there. And, once there, how to maintain their lifestyle.

Estate Planning: Helping elderly clients address financial, health, and legacy concerns.

College Planning: Helping families reduce the costs associated with educating their children.

Divorce Planning: Helping divorcing clients understand the equitable distribution of marital assets and the financial challenges that can result from divorce.

Planning Capital Management Corp is a Registered Investment Advisor with the SEC, and we are held to a fiduciary standard with all of our clients. We offer full financial planning in conjunction with investment advice and portfolio management. Should you have any questions or concerns about current market conditions, or just general financial planning questions, schedule a call with us!