Peaceful Parting

By Tracy B. Stewart, CPA, CFP, CDFA

Reprint from Today's CPA, May/June 2005

While she was traveling, Marilyn's husband, Jeff, canceled her credit cards. He also filed child endangerment charges against her. When she returned, authorities put her in a mental health care facility to protect her child. Marilyn was not insane, nor was she a danger to her child. Jeff was filing for divorce, and was legally positioning himself for control of their finances and custody of their young child.

The Collaborative Process vs. Traditional Litigation

Traditional litigation brings added tension and anger to an already difficult situation. The collaborative process encourages a more respectful and understanding approach. Clients and team members agree from the outset to work towards a mutually agreeable settlement and to avoid court intervention. Working together, all parties can resolve their difficulties in such a way that minimizes conflict and helps all parties move forward in a more positive direction.

Following is a comparison of the collaborative process versus traditional litigation.

	Collaborative Process	Traditional Litigation
Atmosphere	Both parties, assisted by trained professionals, work toward solutions. All parties agree to minimize antagonism and reach a settlement.	A "win at all costs" legal system encourages hostility and undermines cooperation.
Environment	A structured and controlled setting encourages trust and objectivity in negotiations.	Continuing conflict aggravates existing painful emotions.
Costs	Legal costs can be contained. Expenses are discussed and agreed upon at the beginning of the process.	Legal costs soar. Parties may be forced to spend money on undesired procedures.
Privacy	Since there are no public hearings, confidentiality is more easily maintained.	Confidential personal and financial matters become public record and are open to scrutiny.
Flexibility	Negotiations occur in an environment and on a timetable agreed upon by all parties.	Negotiations often take place in a crowded courthouse under intense pressure.
Timeliness	Agreements can be reached more efficiently.	Proceedings can be unnecessarily prolonged.
Recovery	Parties agree to settle at the outset, and they participate in a process that helps them heal and move forward.	Most cases settle--but only after the damage has been done and substantial costs have been incurred.

Su	Mo	Tu	We	Th	Fr	Sa
1	2	3	4	5	6	7
8	9	10	11	12	13	14
15	16	17	18	19	20	21
22	23	24	25	26	27	28
29	30	31

Peaceful Parting

By Tracy B. Stewart, CPA, CFP, CDFA

The Collaborative Process vs. Traditional Litigation

Collaborative Process

Traditional Litigation

Atmosphere

Environment

Costs

Privacy

Flexibility

Timeliness

Recovery

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