Law Times

Law Times • June 22, 2009 FOCUS PAGE 9 nomic slump poses an even greater challenge. The re- sult: more people are stop- ping by the divorce financial analyst's office to see what they can afford before they darken a lawyer's door, one expert tells Law Times. "Clients are much more sensitive to the cost of di- vorce," says Eva Sachs, a cer- tified divorce financial analyst and founder of Women in Divorce Financial. "Not only are they looking at the cost to them but the actual fees that they are going to be paying to all divorce professionals, and that may be influencing them more than it ever has before in terms of how they want to progress and move forward." Sachs says she thinks cli- ents are "hesitating and say- ing, 'If I am going to really move forward, whether it's using the litigation model or the collaborative model, I need to be fully aware, or I'd like to be aware of what this divorce is going to cost in the long run because that may be added to carry forward debt.' There are very few people to- day who have enough cash flow to maintain their life- style never mind additional divorce fees." She says many people are financing their lifestyles — and their divorces — with credit cards and lines of credit and paying off all of those di- vorce costs with whatever is left over in the equalization. Sachs notes people are "more sensitive to that than they ever have been in the past because not only are these big numbers but they've got less left over. So, when I do my projections for my clients, in a lot of cas- es they may be okay if they didn't have this overhanging debt carrying forward for them after divorce, and it may not just be because of di- vorce professional fees but all the other expenses that they may be incurring between the time of separation and actu- ally getting the separation agreement completed." The role of a certified di- vorce financial analyst is fairly new; Sachs was certified four years ago. "It's both new from a lawyer's perspective, but it's also new from a client's per- spective. Clients are coming to me more directly rather than through lawyer referrals. So clients are recognizing that they need or are looking for this information more so than lawyers referring their clients." The recession has forced clients to get their "ducks in a row" in terms of their financ- es, including what potentially this divorce will cost. "That's a challenging question and I Clients more savvy about cost of divorcing W BY GRETCHEN DRUMMIE Law Times hile the decision to split is never easy, the eco- think it's a fair one for law- yers to answer with, 'I don't know, it depends.' And, I think clients are starting to recognize that they may have some control over the cost." Sachs says what she gives them is a "reality check" right at the beginning of the pro- cess. She has noticed anoth- er sign of the financial times: clients who might otherwise be at each others' throats li- tigiously have worked things out more smoothly once they see their true financial status. In fact, the economic downturn is forcing people to be more creative with the professional help they seek out. Things are "turned up- side down," she says, noting clients are coming to her first more often. Meanwhile, more lawyers are bringing her aboard. "I can't see how anybody in today's environment can- not see the value for their clients in running projections a signed agreement, that's their afterwards really isn't, to a degree, a lawyer's goal. What happens respon- sibility. And I don't know how many of them follow up with their clients and say, 'Hey how are you man- aging?' So what happens is, it's six months or a year lat- er when the reality of the fi- nancial implications of the settlement really hits home, and if things are not work- ing out well financially, the client is likely to not take responsibility of that out- come on themselves." So, when she does client The recession has forced clients to get their financial 'ducks in a row,' says Eva Sachs. for them whether they're at the beginning stages or be- fore signing separation agree- ments," says Sachs. "Lawyers are hired to get their clients to projections, "we make a lot of assumptions. If you get this rate of return; if you put this money away into your RSP; if you control your expenses in this way; if you buy a property at a certain price. We're making all these assumptions and we're doing the projections based on the settlement that's agreed to." But Sachs does something else: she follows up six months to a year later to make sure the clients actually did everything they were supposed to do. "I say, 'Okay, let's follow up,' because the result is cli- ents don't take the responsi- bility on themselves to say, 'I didn't do a lot of these things we were assuming.' They'll typically say, 'I got a bad deal,' and there's lawyer blame there. . . . If their life after divorce doesn't work out, they'll put the blame on the shoulders of anybody else except themselves. I think projections allow clients to face that responsibility ahead of time . . . and understand, 'I have responsibility in this thing working out.' I think it's a huge advantage for cli- ents but also for lawyers to end up with more satisfied clients at the end of the day." After all, "at the end of the day more referrals come from happier clients." LT Child Support Guidelines Service Terry W. Hainsworth Provides a full analysis of the Federal Child Support Guidelines, giving you the best chance for a clear understanding of the financial obligations of divorcing parents to their children. Looseleaf & binder • $149 • Releases are invoiced separately (4-5/yr) P/C 0493030000 • ISBN 0-88804-257-4 Divorce Act Manual Terry W. Hainsworth A handy reference tool designed and organized to enable the busy lawyer to achieve the desired result with a minimum of hassle. This nationally relevant text focuses on how the trial courts and provincial Courts of Appeal are applying the laws in the cases that come before them. Main work, binder & annual subscription • $284 • P/C 0467030000 ISBN 0-88804-170-5 Ontario Family Law Act Manual, Second Edition Terry W. Hainsworth You can access all the support you need to handle your case with confidence, and substantial case law provides back-up whenever you need it. The Act and Federal Child Support Guidelines (with Ontario Tables) are annotated with extensive commentary and case discussion. Looseleaf & binder • $203 • Releases invoiced separately (4/yr) P/C 0485030000 • ISBN 0-88804-103-9 O'Brien's Encyclopedia of Forms, Eleventh Edition, Ontario — Family Law, Division VI Editor: James Herbert Pensions Consultant: Ben Dibben Founding Editors: The Late H. Douglas Stewart, Q.C., The Honourable Justice Mary Lou Benotto Internet version included with your print subscription Compiled by family law and pension experts, this collection of forms and precedents available in looseleaf and electronic format is designed to save you time. Looseleaf & binder with Internet access • $205 Releases invoiced separately (1-2/yr) P/C 0895030000 • ISBN 0-88804-134-9 caseAlert – Family Law An easy to use electronic service that keeps you up-to-date with the latest decisions in family law. Each week subscribers receive an e-mail bulletin summarizing recent court decisions in the family law area. These summaries are arranged in various sub-topics to provide a quick overview of what's happening in the courts today, and are linked to the case digest and the full text decision in pdf format. Visit www.canadalawbook.ca to "Access Online Products" for your free trial. Annual subscription price $410 • P/C 0534700999 $23 for each additional recipient Family Law in Ontario: A Practical Guide for Lawyers and Law Clerks Michael G. Cochrane Written in a concise and easy-to-read style, this resource offers a good balance of substantive and procedural elements of family law, actually illustrating how to run the family file day-to-day. Looseleaf & binder • $159 • Releases are invoiced separately (1-2/yr) P/C 0441030000 • ISBN 0-88804-088-1 Ontario Family Legislation Consulting Editor: Elliot S. Birnboim This is an annual consolidation of statutes and regulations most frequently used in family law in Ontario. Perfectbound • 896 pp. • Published April each year Standing order $76 • P/C 0823140000 Current edition only $86 • P/C 0823010000 • ISSN 1198-211X Family Mediation: A Guide for Lawyers Cinnie Noble A comprehensive guide that provides a clear understanding of the major concepts of family mediation, including the practice and procedures used in the process. Perfectbound • 183 pp. • 1999 • $60 P/C 0944010000 • ISBN 0-88804-308-2 For a 30-day, no-risk evaluation call: 1 800 263 2037 or 1 800 263 3269 www.canadalawbook.ca CA045 Canada Law Book is A Division of The Cartwright Group Ltd. • Prices subject to change without notice, to applicable taxes and shipping and handling. www.lawtimesnews.com CA045 (LT 1-2X4).indd 1 6/17/09 11:13:02 AM LT0622

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