A Financial Adviser Can Help During A Mediated Divorce

NEW YORK (MarketWatch) -- Going through a divorce is an emotionally exhausting experience. Adding insult to injury, attorney fees associated with the process can run into the thousands of dollars. To combat such costs, some people are increasingly turning to mediators instead of lawyers to help them settle the divorce.

A mediator is a third party who helps a divorcing couple come to an acceptable agreement about the terms of the divorce. This person assists the couple in the negotiation process but does not actually make the decisions.

If you do choose a mediator, you should consider consulting a financial adviser as well, says Katherine E. Stoner, attorney, mediator and author of "Divorce Without Court: A Guide to Mediation and Collaborative Divorce."

But do it early in the process so that you will know what issues may come up and what steps to take to avoid them. In addition to the first meeting, you should also consult the adviser before agreeing to any property settlements.

The adviser can also help you assess your assets, tax liabilities, retirement plans and current investments. Together with the adviser, you can create long-term plans for investing, estate planning and kids' college expenses.

Stoner offers the following guidelines when working with a financial adviser during a mediated divorce:

Aim for prevention of problems. Instead of waiting for your adviser's advice, request it in advance. A good adviser will offer multiple options and will illustrate how they work with examples.

Ask questions. If you don't understand something, now is not the time to hold back. Get your adviser to explain anything that seems confusing.

Keep fees low by being prepared. The more you know, the less you will have to pay your adviser. Give the adviser a prepared list of questions before you meet. Ask the adviser to let you know what documents you'll need to bring to your meeting and have them ready.

Get a second opinion. If you're not comfortable with the advice you're getting, it's wise to ask for a second or even third opinion. To avoid problems regarding adviser fees, just make sure you have a written agreement up front.

By Marshall Loeb