Kevin Worthley a RI-based Certified Divorce Financial Analyst Speaks at Rhode Island Mediators Association

Online, April 13, 2010 (Newswire.com) - In Divorce, It's Ultimately about the Money

Warwick, RI - Whether in a contested or mediated divorce, divorcing couples need to realize there are important short and long-term financial issues to understand and resolve. Using a Divorce Financial Planner in the process can help clarify those issues and avoid costly mistakes for one or both spouses.

On February 19th, 2010, Kevin Worthley, a RI-based Certified Divorce Financial Analyst and divorce financial planner, gave a presentation to the Rhode Island Mediators Association at their monthly meeting at the Sheraton Airport Hotel on Post Road. The presentation, entitled How Divorce Financial Planners Can Bring Value to Divorce Mediation, discussed the many tax and financial problems that often occur in divorce settlements and how a specially-trained financial planner can assist the client(s), the mediator and the client(s) attorney(s) in finding acceptable solutions to these financial issues.

" I found the presentation interesting and informative", said Frank P. Geremia, President of the RI Mediators Association. "Kevin has a clear understanding of the financial issues of separating couples and he has the tools to clarify the impact of various choices. I was most impressed by his focus on giving clients "value" by customizing his services to individual circumstances."

More often than not, the divorce settlement focuses on a near-term outlook and doesn't take inflation and potential cash-flow problems even a few years in the future into account. "Dividing assets and income can have significant tax issues too and if these are not handled correctly, there could be significant and costly mistakes to one or both spouses," observes Worthley.

He states that often, one or both spouses (and their attorneys) are not aware of these financial problems. "While tax issues are sometimes understood by the attorneys, mistakes are still made with IRA, 401k or pension transfers", he says. In addition, while a 50/50 split of assets may sound fair, not all assets are necessarily equal and lower-income spouses may end up in severe financial difficulty supporting a house and children by themselves just a few years after the settlement is finalized.

Worthley maintains that an analysis may show one or the other spouse that it may not make financial sense for one spouse to keep the marital home, or that an alternative settlement could benefit both ex-spouses over time. "Initially, on paper, a proposed settlement may seem fair to both parties. Over time though, while the net worth of both spouses may potentially increase, one or both of them could run into cash-flow problems." By then, he says, it may be too late to go back and re-negotiate the terms of the settlement.

The divorce financial planner may be a cost-effective resource for both the client(s) and the attorney(s) as well. "In general, divorce financial planner fees are much less than what attorneys may require," Worthley says. "The planner can not only save the client in divorce costs, but also relieves the attorney and their staff of the drudgery of financial data gathering, budgeting chores and other non-legal matters. This allows the attorney to focus on what he or she knows and does best - practice law."

Divorce financial analysis is a relatively new niche in financial planning, but as many clients in CT, NY and NJ have discovered, the benefits to the clients could be substantial, whether in a mediated process or in a contested divorce. "As in general financial planning, the more information and analysis that's made available to the client and their attorney, the better resources they have to arrive at a fairer settlement, Worthley says. "This extends to forensic analysis, income/expense projections and avoiding tax issues. The better prepared the client is, the more empowered they are to find solutions that work and allow them to avoid mistakes and move on successfully in their new lives."

About Kevin Worthley: Kevin Worthley is a Certified Financial Planner™ practitioner and Certified Divorce Financial Analyst at the Retirement Planning Company of New England in Warwick, RI. His independent, fee-based service assists clients in many aspects of personal finance, including comprehensive financial planning, investment management, college planning and divorce finance. He is a Board member of the Financial Planning Association and a member of the Rhode Island Mediators Association. He is also a Board member of the Association of Divorce Financial Planners.

For more information about the RI Mediators Association, go to www.rimediators.org

For more information about divorce financial planning, go to www.divorceandfinance.org or www.institutedfa.com