If you’ve never hired a divorce financial advisor, you need to ask the right questions to make sure you find the right one for your unique circumstances.
Ask your prospective divorce financial advisor as many of the following questions that apply to your unique situation:
- How much of your practice is dedicated to divorce? You want someone who spends at least half their time working on divorce financial issues – not someone who “dabbles” in the area.
- How many divorce cases have your worked on? And what was the outcome?
- How long have you been practicing – in the divorce arena as well as in the financial services arena? If they don’t have a lot of divorce-related experience, ask “Do you work with a coach or mentor?”
- What sets you apart from your competition? Why should you choose this financial professional over another?
- What is your educational background? Has this financial professional taken any divorce-related courses or seminars?
- What professional designations do you hold? For more information about financial designations, see “About Financial Professionals”
- How many times have you been to court? This financial professional may be testifying on your behalf, so you want someone who has experience in the courtroom. If possible, find out how these cases turned out.
- Have you worked with many lawyers? Ask for a few references, and call them.
- Will you be working for me exclusively, or will my spouse and I be sharing your services?
- Do you work in an Alternative Dispute Resolution methods – such as Mediation or Collaborative Divorce? Ask about their experience working as a financial neutral.
- What is your main area of expertise? Some professionals have a great deal of knowledge about the needs of special-needs children, or how executive compensation, tax issues, or estate planning might impact your divorce.
- Will you do all the financial work, or will you need to bring in other professionals for specific portions? If they bring in other experts, ask who they like to work with, and how that professional will be compensated.
- Can you recommend other professionals to me? Your first stop may have been with the financial expert, so ask if they can recommend a lawyer, mediator, business or pension valuator, etc.
- Why did you choose to work on divorce cases? Some people chose this work because they, a friend, or loved one went through a divorce where they received poor financial advice, and the divorce financial advisor is determined not to let their clients make those same mistakes. Other advisors do the work because they want to manage your assets post-divorce. Neither is a “bad” answer, but it can be useful to know what the advisor’s motivation is.
- What is your hourly rate and/or billing terms? Ask about whether they charge a retainer, how often they bill, what their hourly rate is, and whether they have any flat-rate plans (most will not offer flat- or fixed-rate plans, however).
- What do you need from me? Ask if they have a checklist you can use to gather your documents.
- What will happen to my case if something happens to you? Is there someone else you can deal with if your advisor has an accident, goes on vacation, or is tied up with another case?
- How many divorce cases do you currently have on the go? If the professional also manages investments or does taxes, you might want to ask about their non-divorce caseload as well. You don’t want your work to fall between the cracks if they’re over-extended.
- What is your preferred communication style? Regular in-person meetings, emails, phone calls, text messages?
- Can I bring a friend to our initial meeting? It can be very useful to hear impressions from someone who cares about you, but is not as emotionally involved in your divorce issues as you are.
- Will you always work in my best interest? Ask if the organization that granted their designation has a Code of Ethics/Conduct they can provide to you.
- Has a client ever fired you – or vice-versa? What were the reasons for your parting company? If we part company, how will the transfer of my files be handled?
- Can you continue to work with me post-divorce? Some professional organizations prohibit their members from working with a client after the divorce has been finalized.
- Will you create a written contract detailing your and my responsibilities, the scope of your assignment, your billing terms, etc.?
- Can you provide one or two references from previous clients? This is a bit of a tricky question; divorce is an intensely personal and often painful process, and former clients may not be willing to dredge up those feelings by talking to you. Also, the financial pro may have gotten a client the best settlement possible, but the client may still feel disappointed that he/she didn’t get “everything.”
For more information about choosing a divorce financial advisor, please go to www.divorcemag.com/financial-issues.
