When there are a lot of complex issues involved regarding the finances during a divorce, you’ll need to work with a mediator that is well-versed with preparing a financial analysis. During a divorce or separation a major transformation can occur in terms of the financial arrangements.
There will now be 2 different households that need to be supported and both short-term and long-term planning must be made to accommodate each party. There are many financial implications involved when a couple separates. Sometimes there is one spouse that has been supporting the entire family and in other cases there have been 2 incomes that were brought into the home. Spousal support may be issued based on the personal circumstances of the household and child support must also be arranged.
Future financial analysis must be made in order to determine support that will need to be made on an ongoing basis and to determine both the long-term and short-term cash flow of both parties. Once everything has been worked out in terms of a thorough financial analysis, the mediation can take place based on the outcome of the analysis. Working with a mediator gives you the chance to sort out your finances so that you know exactly where you stand now and in the future.
Proper financial decisions can be made based on the data presented. Most couples that have walked into our office could not clearly define their financial pictures and this is one of the first things that needs to be completed. It’s hard to make a decision based on confusion and complexities. Our job as a mediator is to simplify the finances and make them understand by both parties so that sustainable and viable solutions can be presented for the future.
There is a lot of emotional turmoil that takes place during a separation or a divorce and the couple also needs to deal with a brand-new financial situation. In order to help lessen the stress load a mediator will bring both parties forward to discuss plans for the future and short-term living arrangements. When you have a mediator by your side you’ll find that fair and equitable financial arrangements can be made that are agreed upon by both parties. The mediator that you work with must have a full understanding of the tax implications involved, how debts and assets should be divided and know the current basic laws that are relevant to separation and divorce issues. Financial Analysis – CarlsbadDuring the divorce a thorough financial analysis must be made, which may include the following:
- Business appraisals
- Community and separate property
- Income and expenses
- Assets and debts
- Child support and spousal support
- Any other relevant financial information
Before any agreements can be made in terms of finances a full analysis must be done. Financial information must be collected, identified and organized and then listed and valued. Property must be placed into different categories including separate property and marital property and expenses must be compared to income.