Identifying Financial Pitfalls in Divorce Mediation

Identifying Financial Pitfalls in Divorce MediationAt Elizabeth Henson, Attorney Mediator, P.C. in Denver, I help my clients with identifying financial pitfalls in divorce mediation. If resolved through litigation, divorce can potentially cause significant monetary damage and lead to an outcome that doesn’t satisfy either party. By bringing all of your finances to the table during mediation, I can help you navigate this often contentious issue and work towards mutually agreeable outcomes.

Mutual Debts

Even if it’s agreed that one party or the other will be responsible to pay a debt, whether a credit card, mortgage or some type of loan, both sides are still legally liable if that debt is held in both of their names. Creating equitable financial arrangements through mediation can help alleviate this risk because both sides come to an agreement for which debts each will be responsible after the divorce. Using this method results in nobody feeling slighted, and in my experience, everyone is far more likely to follow through on paying accordingly.

 

 

Future Budgets

Moving from a dual-income to single-income can be a huge hit to the budget for one or both parties. We will look at realistic numbers on both sides during divorce mediation sessions to identify budget surpluses and shortcomings. You and your spouse may also need to re-evaluate certain lifestyle choices and adjust accordingly. From this point, we can better and more clearly approach discussions surrounding the division of assets and debts, as well as determine next steps for spousal maintenance and child support (if applicable).

 

 

Positive Parenting

Divorce can sometimes prompt parents to compete for a child’s affection in unhealthy ways, such as buying extravagant gifts. Instead of putting the children in the middle of your tug-of-war, you can better protect their well-being through mediation. In each session, both parties will work through their issues, disagreements and points of contention. The goal is to come to an amicable divorce agreement that enables both sides to leave much of the tension and anger behind. In turn, this can enable you to enjoy more positive parent-child relationships.

 

 

Staying Focused

Because mediation involves working through tough decisions side-by-side, it can potentially help you build a new and healthier type of relationship with your former spouse. The key is to stay focused, both inside and outside of mediation. Divorce can be messy and emotionally draining, even with an experienced mediator to guide you. Keep things simple by deferring major decisions and life choices until everything is finalized. For example, you may want to avoid engaging in a new relationship or making significant financial decisions immediately.

 

By working together, respectfully and openly, to create an equitable divorce agreement in mediation, I’ve found that both parties can more easily move on with their lives. If you and your spouse have decided to proceed with a divorce in Denver, please contact me, Elizabeth Henson, Attorney Mediator, P.C., for assistance. I can help you with identifying financial pitfalls in divorce mediation and create an agreement that ensures a happier, healthier future.