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Divorce in the Red Zone

BY Carl M. Palatnik
July 02, 2014

People considering hiring a divorce financial planner often ask me ' a divorce financial planner ' when the best time is to bring me into the process. My answer is, “The sooner the better,” especially in cases that could involve complex or contentious issues, a power or knowledge imbalance, a lack of trust or an inability to work cooperatively. Experience has taught me that the earlier the underlying financial data is carefully and thoroughly collected and analyzed, the more likely workable outcomes will evolve. The importance of putting a case into a conceptual and structured financial framework in which the various parties can quickly and easily engage cannot be overestimated.

(Although this article focuses on key stages in divorce litigation, it is also applicable to mediation, collaborative and cooperative divorce. Irrespective of process, a financially workable outcome is more likely when a thorough understanding of the marital finances precedes (but does not unnecessarily delay) negotiations and their accompanying and often irreversible outcomes.)

The 'Red Zone' Concept

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