Collaborative Divorce and Preserving Wealth

BY STEVE DINNEN

There’s no getting around the fact that divorce is laden with a lot of anger and emotion. But combat can be turned to collaboration with a little extra care and a spirit of cooperation by the opposing parties.

The process is called collaborate divorce. Rather than slug it out in court, with lawyers working under an adversarial system, the spouses work together, with financial planners, mental health professionals and, yes, lawyers to reduce anxiety and costly conflict, minimize court involvement, and preserve wealth and financial status. It’s a program that was begun in Minnesota in 1980 and has spread to other states including Iowa, where a team of professionals working under the banner of Iowa Collaborative Divorce strive to empower your family for the next (post-divorce) chapter in your life.

Kendra Erkamaa (pictured), president of financial advisory service Triangle Financial Services in West Des Moines, works on the money side of planning a collaborate divorce. She concedes that it is not a program for everyone, but for those willing to sign on (they cannot go the litigation route) it does a better job of preserving wealth. It also works well when there is a disparity of wealth between the spouses.

The steps to this are relatively easy. Both sides jointly choose to use collaborative divorce, and then they chose an attorney who participates in the program at iowacollaborativedivorce.com. They select neutral family and financial professionals, and work on uncovering potential emotional and financial hurdles early. They meet individually with their attorneys and together the team makes decisions that are mutually agreed upon, not imposed. They approve their plan and file the divorce papers in court for its approval.

If outside experts are needed, for a business valuation, for instance, they’re brought in. (If you go the litigation route, both sides will typically hire experts to support their position; this can be costly.) All of this is done in private, outside the purview of court records, and the spouses, not the court docket, determine the timeline.

This team of collaborative practice specialists aims to educate and assist both parties and to help them communicate. There is no such process under the litigation method.

This is not a cheapskate divorce, as different experts come into the process. However, costs are usually less than litigation.

Collaborative divorce is not quite a Sunday stroll in the park, but it can reduce anxiety and honor the dignity of both the parents and children.

Stay Flexible When Trying to Get Around Europe

BY STEVE DINNEN

I have bounced around Europe this summer a fair amount, in the process showing that if you want to get around, you have to be adaptable. First, the plane ride from Chicago to Athens. Then a ferry, to the island of Aegina. There, I rented an ATV (40 euros a day, but they’ll bargain for cash). My buddy Brad hated the smell and noise of his ATV so much he swapped it out for an e-bike that performed very nicely.

In Spain we rented a car from a discount shop, maybe half as much as Hertz. Most European cars have manual transmissions. Do not go big here; it was tough navigating my Nissan Rogue down narrow streets, and maneuvering in and out of parking garages (recommended in big cities) was downright scary.

I flew Wizz Air (honest) from Barcelona to Katowice, Poland. Everyone aboard applauded when we touched down. Then I took a crowded bus into town. The next day, a super clean, fairly comfortable train hauled me to Krakow.

Next up is France. After seeing Paris we’ll take a high-speed (200-plus mph) train to Bordeaux. If you factor in the time to get to the airport and clear security, the train actually burns up less time than a plane, and is less costly.

Last, some kayaking is due up in the Dordogne area of France. That’s not actually going anywhere, just enjoying the scenery.

Investment in Green Energy Funds Grows

BY KATE DORE FOR CNBC.COM

There’s been a surge of interest in green energy funds as President Joe Biden prepares to sign a bill allocating $369 billion for climate and energy funding.

This month, investors have already poured $425.5 million into U.S. renewable energy exchange-traded funds through Aug. 12, compared with $112.8 million in July, according to estimates from Morningstar Direct.

“I think we’re entering new territory,” said certified financial planner John McGlothlin III with Southwest Retirement Advisors in Austin, Texas, who specializes in values-based investing.

The Inflation Reduction Act, passed by the House last Friday, includes funding for manufacturing, research and development, preserving natural resources and more, including individual tax incentives. The bill aims to cut U.S. carbon emissions by about 40% by 2030. READ MORE.

Financial Therapists Focus on Where Money Meets Feelings

BY CHARLOTTE COWLES FOR THE NEW YORK TIMES

In the early days of the pandemic, Nora Herting decided to try financial therapy.

“I didn’t even know what it was, exactly,” she said. “I heard about it and thought, ‘That sounds like something I need right now.’” A small-business owner whose revenue had been decimated by lockdowns, she faced agonizing choices between her own financial security and that of her company, including her 14 employees.

“At the time, my personal finances and my business finances were inextricably tied together,” said Herting, who lives in New York. “I needed help — not in a business sense, but more in a personal sense. Like, what decisions align with my values? Are these decisions I can live with?”

She made her way to Amanda Clayman, a financial therapist with a private practice in Los Angeles. Clayman did not offer financial advice; instead, she directed Herting to make a timeline of her relationship with money. Over several sessions, they discussed Herting’s family history, her career and how she communicated about money with her boyfriend. Then they developed a plan. READ MORE.