In Episode 37 of Divorce Diaries: Lessons from the Trenches, host Cary Jacobson, attorney and mediator with Jacobson Family Law, is joined by Allison Terrill, CDFA, co-founder of Phoenix Financial Advocates. Together, they explore the crucial role financial professionals can play in guiding individuals through the complexities of divorce, offering clarity and strategy during one of life’s most challenging transitions.
Understanding Common Financial Challenges in Divorce
Finances are often one of the most stressful and complicated parts of the divorce process. Many people find themselves asking similar questions:
- Can I afford to keep the family home?
- What will happen to retirement accounts and other shared assets?
- Is my spouse being transparent about financial information?
In addition, when a family business is involved, determining its true value becomes essential. These questions can feel overwhelming, but with the right support and strategy, they can be addressed methodically and confidently.
How Financial Experts Support the Divorce Process
Certified Divorce Financial Analysts (CDFAs) bring specialized financial expertise to the divorce process. Unlike traditional financial planners who focus on long-term investment management, CDFAs concentrate solely on the financial aspects of divorce. They collaborate with attorneys to:
- Gather and organize financial documentation.
- Analyze household budgets and determine realistic support needs.
- Develop settlement options that align with legal strategies.
- Provide unbiased data to empower better decision-making.
- Assist in mediations where complex financial questions arise.
This level of financial clarity allows individuals and their attorneys to focus on resolving legal issues while ensuring no detail is overlooked.
Business Valuation and Asset Division
Dividing marital assets can be especially complicated when a business is involved. Traditional business valuations can be prohibitively expensive, often costing tens of thousands of dollars. Innovative tools and partnerships now make valuations more accessible and cost-effective, helping couples and their attorneys understand the true value of business assets without unnecessary financial strain.
This clarity is critical in negotiations and mediations, ensuring equitable settlements and avoiding costly mistakes.
Planning for Long-Term Financial Stability
Divorce settlements don’t just affect the present — they shape future financial security. Effective financial analysis considers:
- Future changes in support obligations.
- Upcoming major expenses, such as college or new housing.
- The sustainability of settlement options over time.
By modeling various financial scenarios, individuals can make informed choices that support both immediate stability and long-term goals. Post-divorce financial planning services can also help individuals restructure budgets, reduce expenses, and plan strategically for the future.
Emotional Support Meets Financial Strategy
Divorce involves more than numbers. Behind every financial decision are emotions — fear, grief, uncertainty. Building a support team that includes legal, financial, and emotional resources helps individuals navigate the process more holistically. A compassionate financial team provides not only data, but also a “soft place to land” during an otherwise turbulent time.
Taking the First Steps
For those just beginning the divorce process, gathering and organizing financial documents is essential. Creating individual bank accounts and understanding household spending patterns can set a solid foundation for future financial decisions. Early involvement of financial professionals can reduce confusion, anxiety, and costs down the road.
Explore More Resources
For more practical insights and expert guidance on navigating divorce, tune in to Divorce Diaries: Lessons from the Trenches.
Visit Jacobson Family Law to learn more about legal options for resolving divorce-related issues, and explore financial advocacy services at Phoenix Financial Advocates to build a strong financial strategy for your future.