A financial neutral has an important role on the Collaborative Divorce team, especially when the parties have complicated business, financial, or tax issues. They have experience in running financial scenarios, understanding maintenance buyouts, or other complex matters. Financial neutrals are usually CPAs or professionals with extensive financial background. They are generally better with numbers and balances sheets than lawyers. Everyone involved can be confident that the financial neutral’s experience will help spot issues that may go unnoticed by a non-financial person. The Financial Neutral is an added layer of security since there’s another set of eyes looking at assets and identifying potential concerns.
The Financial Neutral is a Resource for Both Sides
A financial neutral is just that—they’re neutral and they’re there for both sides. They’re not a “hired gun” for either party. They gather the information, put it all together, and package it for each spouse. The financial neutral can streamline things for both sides. The parties don’t have their own separate lawyers duplicating efforts, analyzing the financial information on their own, and creating their own balance sheets. Instead, there’s one person doing that work that both sides trust to do it right.
A Financial Neutral Is More Cost Effective
It’s smarter for a client to have a financial neutral do all the document gathering and analysis. Their hourly rate is going to be lower than the two lawyers’ individual rates. They’re doing the same work, but for both parties and so the cost is shared and substantially less.
It Brings Peace of Mind
The presence of the financial neutral is something like an “insurance policy” for clients.
Sometimes, when it comes to financial or tax issues, there are times when the attorney and clients need professional advice. The neutral can verify those decisions for the client and attorney. That means clients have assurance and confidence from the neutral, who has been brought in and says, “yes, this makes sense, you’re doing this right, and you’re not missing anything.” It’s always helpful to know if investments are split correctly, or someone is not misjudging the tax status of an asset, or if some future funding plans should be viewed in a different light.
If you are looking for help in starting the Collaborative Divorce process, or have issues concerning divorce or family law, contact The Law Offices of Patrick Markey, P.C. for a consultation.