Mediation Archives - Tracy Stewart, CPA

Divorce is Divorce except when…

March 15, 2015 by Tracy Leave a Comment

One of the most frequent questions I am asked by College Station clients is about the difference between Collaborative Law divorce, litigation (going to court) and mediation or informal settlement.

My clients ask this question when they are consumed with fear and negative emotions at the start of their divorce process. Often they don’t trust their spouses to be rational and reasonable. They are fearful that they will lose what financial security they may have and face poverty in the near future. They cannot believe that litigation is as expensive as they are warned because they have never experienced it and cannot imagine what it is like. Likewise, they do not know what to expect of mediation. They usually think mediation is a process separate and apart from litigation. In fact, mediation is an event within the traditional litigation process. Mediation can also be used to settle tough disputes inside a Collaborative Law case.

My good friend and colleague, Camille Milner, has beautifully explained the differences in her blog. She talks about Collaborative Law, mediation, traditional litigation (the courtroom style) and settlement conferences. Please hop on over to her site, Milner-Law.com, and read about it for yourself.

How much will this divorce cost?

May 2, 2014 by Tracy Leave a Comment

I hear questions from people who come to me for divorce financial advice. No matter whether we are talking about College Station or Houston, the answer is always “it depends.”

It depends upon which divorce process you choose. Do it yourself, litigation, mediation or collaborative. Even the do it yourself can be expensive if you are not fully aware of the complexities of your financial situation. Don’t be like most people. Don’t assume your situation is simple.

It depends upon how cooperative you and your spouse are going to be with each other. Will you compromise quickly? Will you fight over the vacation souvenirs? (Yes, I saw that happen.)

It depends upon whether you are counting the future hidden costs of incomplete information. Don’t be focused only on the present. Look ahead at the possible financial gotchas that will bite you if you shortcut your divorce. Hire competent professionals: attorney, divorce CPA and child specialist.

It depends upon whether you hire the cheapest or the most expensive attorney. Don’t do either. Hire an attorney with average hourly rates. Ask other professionals for recommendations. Your friends and colleagues will give you names, but that doesn’t mean their favorite is the right fit for you.

It depends upon how organized you are. The more organized, the more you can save on fees.

Low Cost Divorce

August 5, 2013 by Tracy Leave a Comment

Are you looking for a clean, quick divorce in Bryan/College Station that avoids expensive attorney fees? Your answer is the CPA-driven early intervention mediation. Another name for this is “let’s get it done without wasting money.”

Is this right for you?

You should seriously consider this option if you both answer yes to the following questions.

Are you both on reasonable speaking terms?
Do you both believe you can reach mutual agreements?
Do you both want financial advice about your property division and how it affects your future?
Do you want to arrange your settlement agreement to avoid income tax problems?
Are you ready to move at a quick pace?

Why a CPA mediator?

Attorneys are great with the legal issues, but not so great with the financial issues.

I met a disappointed ex-husband whose Bryan attorney hadn’t told him about the risks of not being able to buy a new home after the divorce. Had he known about this, he would have negotiated differently for the property settlement. He cannot qualify for a mortgage on a new home as long as his name is still on the mortgage tied to the former marital home. His ex-wife is in no hurry to refinance the mortgage.

A New York City divorce attorney found my website and has been calling me to consult on divorce cases. Last year I taught him about the Internal Revenue Code rules on alimony recapture. That kept his client out of hot water with the IRS.

There are many more financial issues that a divorce CPA mediator can identify during mediation. This expertise can help you avoid nasty post-divorce financial surprises.

Who writes the divorce decree?

Just as attorneys shouldn’t pretend to be CPAs, accountants shouldn’t pretend to be attorneys. After I help the two of you have a successful mediation on property and children issues, I recommend two reasonable attorneys who want to write your divorce documents. I pick these Bryan/College Station divorce attorneys carefully for their efficiency and their cooperative style. They will advise you on legal matters, but they won’t try to undo your agreement and burn through your savings account with large legal fees.

If you would like to know more about getting your divorce done without wasting money, ask me about mediating your settlement. Drop me an email at stewart@texasdivorcecpa.com.

Know Your Options: Reduce Your Divorce Costs

June 24, 2013 by Tracy

Bryan/College Station couples who are contemplating divorce struggle with the fear of running through all their money. You have heard stories of normal people like you having scorch the earth divorces, huge attorney fees and an empty retirement account when it is over. You can avoid those horrors by understanding your divorce options.

At the basic level there are just three kinds of divorce processes. You and your spouse can choose the best on for you. I’ll give you my take on these from the vantage point of a financial advisor, not an attorney.

Do it yourself

This is the kitchen table option. I have seen this work best when couples have no minor children, no mortgage and no retirement savings. This option can be done without attorneys, if you have a very simple situation. I have seen couples with just one of those attributes (children, mortgage or retirement accounts) try to go the DIY route and crater before they could reach an agreement – but after they argued themselves into a tense situation. Your situation really does need to be simpler than simple for this process to work.

Lawyer up for litigation

This is the traditional route. You hire a lawyer and you start the old fashioned process. Each side demands the same information from each other. Attorney fees climb as each attorney prepares for trial. If you and your spouse don’t agree on everything, you will end up in mediation – and if that fails, you end up court. The cost of that is shocking plus you have lost control of the outcome. As bad as I have made this sound, there are cases that belong in litigation.

Get a collaborative law divorce

A Brazos County collaborative law divorce is one that operates under the protocols of the Collaborative Law Institute of Texas. You want to work with an attorney who has been trained by the Institute. (I have been in cases with untrained attorneys. The divorces were painful and expensive.) In a collaborative law case, you are in control of the outcome, the speed and the cost. You learn how to co-parent with your ex-spouse. Everything is focused on helping the two of you resolve your differences with dignity and more forward to your newly defined lives. Everyone is sensitive to your costs and work with you to minimize the financial hit.

When you are ready to look for a divorce attorney in the Brazos County, contact me. I can help you find the divorce attorney who best fits your preferences.

Divorce Mediation: Learn from the Boy Scouts

May 6, 2013 by Tracy Leave a Comment

To increase your odds of getting what you want in mediation, take a tip from the Boys Scouts: Be Prepared. Most of my Brazos County divorces include mediation. When you are prepared, you have a better chance of a successful outcome.

Develop a realistic settlement range. At the low end, know what your worst-case settlement looks like. At the high end, what is your dream settlement? Calculate your break-even point. These steps will prepare you to respond to various proposals that will come from your spouse during the mediation.

Identify what is essential to discuss at mediation. Make a list. Review it with your lawyer a few weeks before the mediation. The issues don’t have to be financial. One of my clients had a strong emotional issue regarding the old videotapes of her daughter’s early childhood. The mediation did not end until she and her husband resolved the issues surrounding those tapes.

Bring your starting offer. If you initiated the divorce, come to mediation with a written offer. Get the settlement discussions started right away. Your starting offer should not be your bottom line settlement scenario. Consult with your lawyer to pull this initial offer from somewhere within your realistic settlement range.

If you are getting a divorce in Brazos County or nearby counties, I can refer you to excellent divorce lawyers and mediators.