During the divorce process, one aspect that often worries individuals is the potential exposure of sensitive financial information. The good news is that the Collaborative Divorce process makes it possible to keep your financial records private and out of the public eye.
The Court Process vs. The Collaborative Approach
A typical divorce process involves the court system; all relevant documents become part of the public record. However, Collaborative Divorce offers a different path. In this process, you and your spouse sign an agreement at the outset, committing to keeping your divorce out of the court system. This signed agreement provides protection, ensuring that sensitive financial information remains private and doesn’t enter the public domain.
Transparency in Collaborative Divorce is maintained between the parties involved, and unlike the court process, only a minimal amount of information is filed with the court. In a Collaborative Divorce, the only documents filed are the initial divorce filing and the final marital separation agreement. Neither of these documents contains financial information – just two items are filed with the court, keeping the proceedings relatively discreet.
However, it is essential to note that despite the privacy of the Collaborative Divorce process, you and your spouse must be completely transparent about your financial information. Even though the financial details of the case are protected from public eyes, you must share all relevant financial information. A case example from California, the Rossi v. Rossi case, is a reminder that nondisclosure can have legal consequences, even in the private realm of Collaborative Divorce.
The Value of a Collaborative Financial Professional
A financial professional specializing in Collaborative Divorce can be a valuable asset in navigating the divorce. Their role includes gathering all necessary financial documents for both parties and preparing disclosures encompassing assets, debts, income, and expenses. These documents remain private and are shared only between the involved parties, offering a secure environment for discussing and settling financial matters.
The financial professional can also advise on financial projections that assess the future financial security of both parties. This proactive approach ensures that you both comprehensively understand your financial standing post-divorce.
The Collaborative Divorce process is an effective way to keep financial records private while navigating the complexities of divorce. By opting for collaboration over going to court, you can protect sensitive financial information and maintain a more discreet and respectful resolution to the marriage.
Michelle Weldon is a Certified Financial Analyst, CDFA®. She specializes in serving as a financial neutral in Collaborative Divorce cases. She is the founder of Paragon Divorce Solutions, LLC.
She can be reached at 918-521-1601 or by email at michelle@paragondivorce.com. Or, you may visit www.paragondivorce.com