Professional Help

Divorce
planners
are
assisting
women to
get an
equitable
share of
the assets.

AMY MINDELL
Special to The Jewish News

INT

hen the 25-year mar-
riage of West Bloomfield
resident Sue Chalom
dissolved, she found her-
self in a classic predicament: "I was
the one who knew the names of the
children's teachers, but I didn't know a
lot about money."
Instead of relying solely on her
attorney to take care of financial mat-
ters, however, Chalom, a professor of
English at Wayne State University, also
hired a divorce planner to assure that
the assets she received were truly fair.
Although Michigan is an equitable
law state — in which property is
divided according to the duration of
marriage, the earning capacity of each
spouse, and each spouse's contribution
to the accumulation and preservation
of assets — the financially savvy know
that all assets are not equal.
Often, a few years after the divorce
dust has settled, one of the parties —
usually the woman — discovers that
what had seemed to be a good deal at
the time was in fact poor financial
planning.
A new breed of financial planners,
certified divorce planners, help clients
avoid being on the skinny end of this
dilemma by working to secure a truly

10/2

1998

122 Detroit Jewish News

a financial planner or a certified
divorce planner.
Sylvan Lake divorce lawyer
Betty J. Lowenthal recommends
divorce planners for about 25 per-
cent of her clients. It may not be
necessary when both the husband
and wife are financially savvy, or
both work and have retirement
plans.
"My worst-case scenario is a
50-year-old professional husband
with a large 401(k), cars, a house
and a busy practice, who is divorc-
ing from a 48-year-old wife who
has not worked in 25 years,"
Lowenthal says. "There are a lot of
assets and a lot of questions.
"I have had clients who have
never paid bills, never worked,
don't know the first thing about
the family's finances. They cannot
make complex financial decisions
on their own. A divorce planner
helps us find a way to evenly
Photo by John Discher
divide the assets," says Lowenthal_----
who has handled divorces since 1985.
few
years
the
bills
can
begin
to
mount,
fair division of financial assets.
Gold, too, encourages people to be
"Ten thousand dollars in cash is not and the woman may be forced to sell
involved
with their finances. "Women
equal to home equity worth $10,000 - the house because she cannot afford
especially
should be familiar with mar-
the mortgage, taxes, insurance and
or to an IRA with $10,000 in it," says
ital
property.
Before the separation
upkeep. Panicked, she sells to the
Jacqueline Gold, the divorce planning
they
should
copy
files, papers, pay
highest bidder for $275,000.
specialist who advised Chalom.
stubs,
bills,
tax
and
bank statements,"
"After closing costs, commissions
"My research shows that often a
says Gold. "It will save time and
and
mortgage
repayments
she's
left
50-50 split is just not fair," says Gold,
money later." She also recommends
with $155,000," says Gold. "The
who is a financial consultant with
that every woman have credit in her
investment
portfolio
could
have
Hantz Financial Services in Southfield.
own name.
increased as much as $50,000 over the
In Chalom's case, although she and
"You can't dump the case
same
time
period."
her ex-husband came to a settlement
in
your
lawyer's lap and
When former Metamora
fairly quickly following their 1997
Sue Ch alom was
expect
good
results," Gold
resident Bobbie Braendle's 12- helped by divorce
divorce, Chalom learned that some
warns.
"You
should seek the
year
marriage
fell
apart,
she
plann er Jacque-
assets were more beneficial to her
advice
of
financial
profes-
and
her
husband
mutually
line Gold.
long-term security than others.
sionals."
agreed
to
split
their
net
assets
"Together with our lawyers, we
Most divorce planners
in half. While the split was
agreed on a sum that I would receive,"
--/\
charge
between
$75 and $200 an
amicable and Braendle had a good
says Chalom, "but without assistance,
hour.
Gold's
firm
charges
a
flat
fee
of
grip on the couple's financial situation,
I wouldn't have known which assets to
$1250 to plan a divorce, and calls
the problem was they didn't know
take.
itself the nation's first and only divorce
how much everything was worth.
"I didn't want the IRAs, because I
planning team. Hantz boasts a team of
"We
had
never
done
this
before,"
would have to pay a penalty on them.
seven certified divorce planners
says
Braendle.
"He
was
president
and
I did want the securities. My planner
(CDPs).
CEO
of
a
large
corporation
and
had
a
was able to spell out what I wanted."
The CDP designation was created
that
we
just
didn't
know
-
lot
of
perks
One mistake Gold often sees is when
in
1993 at the Quantum Institute for
how to valuate. The divorce planner
women instinctively ask for the house.
Professional
Divorce Planning in
was able to come up with dollar fig-
"Although the house represents securi-
Boulder,
Colo.
Quantum provides
ures for these things."
ty, it also represents a financial bur-
financial professionals and attorneys
While
divorce
lawyers
hash
out
how
den," says Gold.
with divorce training, which can
much of a couple's assets should be
"For example, if the wife receives a
include valuation of property, pension
awarded
to
each
side,
even
the
most
$300,000 home with $200,000 in
types, and tax implications. There are
skilled
attorney
may
not
secure
the
best
equity, this may seem like a fair trade
some 200 CDPs nationwide and 17 in
financial outcome. Increasingly, attor-
in exchange for the $200,000 invest-
Michigan.
neys are recommending clients consult
ment portfolio," Gold says. But after a

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