COLLABORATIVE DIVORCE AND FAMILY LAW IN FLORIDA. No matter how you look at it, divorce and family law matters are difficult to go through. Expectations of stability are shattered,

mistrust grows, and bills pile up. And then the litigation begins. Attorneys file and serve petitions, counterpetitions, requests to produce, and motions to compel. Each party hires dueling mental health experts to convince a judge that he or she should have more time with the children. Privacy is eliminated as each party’s life is probed and publicly questioned so that one side may gain a tactical advantage.

But there is a different way. A more civilized way. And it is called Collaborative Family Law (also known as Collaborative Divorce or Collaborative Practice).

We are a Collaborative law firm dedicated to helping people resolve personal disputes without destroying their families. We encourage the use of the Collaborative Family Law model in divorce, child custody, child support, alimony, post-judgment, prenuptial, and most other family law cases.  Further, Adam B. Cordover is an internationally-recognized leader in Collaborative Practice, a trainer who teaches other professionals how to help families Collaboratively, and author of an upcoming American Bar Association book on Collaborative Law.

How Tax Loss Harvesting Can Turn Non-Marital Investments Into Marital Assets

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If you’re an investor going through a divorce, you likely have a keen eye on your finances. You may already be familiar with tax loss harvesting, a strategy that can help reduce your tax bill by selling investments at a loss to offset capital gains. While this technique can be a smart financial move, it can also have unintended consequences in divorce—potentially turning what you thought was your separate, non-marital property into a shared marital asset.

What Is Tax Loss Harvesting?*

Tax loss harvesting is a strategy that can be used to lower your tax liability. For example, if you have investments in a taxable brokerage account that have lost value, you can sell them at a loss to offset capital gains from other investments. This reduces your overall taxable income and can lead to significant tax savings.

There are many rules associated with tax loss harvesting.  For example, you cannot sell a mutual fund at a loss and then immediately repurchase that same mutual fund.  However, one strategy that many investors utilize is to sell one investment at a loss and then purchase a similar, but different, investment.  For example, you might sell VTSAX, the Vanguard U.S. total stock market index fund, at a loss and purchase VFIAX, the Vanguard S&P 500 index fund, which is highly correlated with VTSAX.  The White Coat Investor website has a really good explainer on tax loss harvesting.

Many investors use this approach as part of a long-term financial strategy, reinvesting the proceeds into different securities to maintain their investment portfolio. However, if you are going through a divorce, you must be careful about how and when you execute tax loss harvesting.

*Please note that we are not accountants, financial advisors, or tax lawyers, this information is not intended to provide advice, and this is for educational purposes only.

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Collaborative Divorce: Control Your Own Destiny

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When you’re facing the difficult decision to divorce, it’s natural to feel overwhelmed. And when you are used to making high stakes decisions, the feeling of powerlessness is just unacceptable. Decisions about your family, finances, and future carry immense weight. The last thing you want is to surrender control of your destiny to a judge in a public courtroom. That’s why many C-Suite executives, doctors, business owners, high-ranking military officers, and other professionals in Florida choose Collaborative Divorce.

What Is Collaborative Divorce?

Collaborative Divorce is a unique and private approach to family law that puts you and your spouse in charge. Instead of battling it out in court, you work together with a team of professionals to craft agreed upon solutions tailored to your family’s needs. Each of you have your own separate lawyers to provide you with independent legal advice.  The Collaborative Lawyers are there solely for the purpose of reaching an out-of-court agreement, and are prohibited, once the Collaborative Process begins, from being used to fight in court.  Additionally, your Collaborative Team may include a financial expert to navigate tricky financial discussions and a Facilitator (who is a licensed mental health professional) to keep discussion focused on the future rather than the disputes that led to the divorce.

Maintain Control Over Critical Decisions

Unlike traditional litigation, Collaborative Divorce fosters cooperation rather than conflict. You, your spouse, and your lawyers share the same goal: to find resolutions that work for everyone in your family. This approach gives you the power to decide how to divide assets, plan for your children’s future, and address any other issues that arise. Instead of a judge dictating your future, you together with your spouse maintain control over these critical decisions.

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Cordover Appears on Great Practice Great Life Podcast

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Earlier this week, I had the pleasure of being featured on Episode 114 of the podcast Great Practice, Great Life, where I shared insights into my journey as an international thought leader in Collaborative Divorce and my efforts to revolutionize out-of-court dispute resolution through my law firm, where we virtually represent clients throughout the State of Florida and also have offices in Tampa, St. Petersburg, and Sarasota. This conversation gave me the chance to reflect on some of the key moments and principles that have shaped both my professional and personal life.

One of the topics we discussed was the profound impact of Hurricane Helene in 2024, when, like many others, I lost my home from the flood surge. In the aftermath of that challenging time, I found an opportunity to reassess my approach to work and life, leaning into gratitude. The hurricane, like so many challenges we face, served as a catalyst for growth and transformation. My story highlights how adversity can push us to innovate and strengthen our resolve.

 

We also dove into the unique world of Collaborative Divorce, an area of practice I’m deeply passionate about. This process brings together attorneys, mental health professionals, and financial experts to help families resolve disputes amicably, privately, and outside the courtroom. It’s a particularly valuable approach for professionals, doctors, executives, members of the LGBTQ+ community, business owners, politicians, celebrities, professional athletes, and others who place a premium on privacy and self-determination. In the podcast, I emphasized the importance of teamwork and how shifting from a competitive to a collaborative mindset can lead to more fulfilling and effective outcomes for everyone involved.

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Simplifying Divorce for High Net Worth Individuals: Working With Your CPA or Financial Advisor

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The Challenge of Divorce for High Net Worth Individuals

Navigating a divorce is never easy, and for high net worth individuals, the process can feel even more overwhelming. Between managing the complexities of Florida Family Law Rule of Procedure 12.285—commonly known as mandatory disclosure—and safeguarding your financial future, it’s natural to want to simplify the experience and delegate much of the work. That’s where a skilled family law attorney can be invaluable. By working closely with your CPA or financial advisor, we can streamline the disclosure process and minimize the demands on your time and energy.

Understanding Mandatory Disclosure

Mandatory disclosure requires each party in a divorce to provide detailed financial documentation. For high net worth individuals, this often includes extensive information about investments, business interests, real estate holdings, and more. The sheer volume of documentation can be daunting, but it doesn’t have to be. If you already have a trusted CPA or financial advisor, they are likely familiar with much of your financial landscape. Our team can work directly with them to gather and organize the required information, so you don’t have to get bogged down in the details.

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5 Tips for Dividing Mutual Funds and ETFs In a Florida Divorce

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Dividing mutual funds and exchange-traded funds (ETFs) during a divorce can be tricky, but it doesn’t have to be stressful. If you’re divorcing in Florida, these five tips will help you navigate the process, protect your interests, and work toward a fair resolution.

1. Consider Your Short-, Medium-, and Long-Term Financial Interests

Before you even think about dividing assets, you should take the time to consider and write down your short-term, medium-term, and long-term interests.  For example, are there investment opportunities now where liquidity is important?  Or do you wish to build on the relative stability of a buy-and-hold strategy?  Do you have an employment-based retirement or profit-sharing plan where it will be easier to save for the future?  Or do you need to keep more of the family’s tax-advantaged accounts to secure your long-term plan?  Do you prefer the control of a defined contribution plan or the consistency of a defined benefit plan? Working with a Collaborative Facilitator and Neutral Financial Professional during divorce can help you identify your interests and adjust your strategy to ensure it aligns with your new circumstances.

2. Understand Florida’s Equitable Distribution Law

Florida follows the law of equitable distribution. This means marital property, including mutual funds and ETFs acquired during the marriage, is divided fairly, though not always equally. Yes, both spouses usually end up with approximately 50% of your family’s net estate, but you can agree to divide it however you wish.  Many spouses mistakenly believe that this means that every asset and every account has to be split in half, but that is not the case.  So long as both of you end up with approximately 50% of your net estate, with adjustments particular to your circumstances, you do not have to split every brokerage or bank account in half.

You can begin by gathering detailed statements for all your investment and other accounts. Identify which assets are marital (shared) and which are separate (this is a complicated area of the law, and an experienced family lawyer can help you do this; you can read more about asset protection here). This will help you understand what’s on the table for division.

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Asset Protection and Florida Divorce

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If you are facing divorce in Florida and have accumulated substantial assets, you may be wondering what asset protection strategies are available. Fortunately, there are some steps to consider, both before and during divorce. Florida is an equitable distribution state, meaning the law divides marital assets fairly, though not necessarily equally. Below are some methods to explore (please note that this is just an overview, and you should speak with a lawyer to determine if these apply to your situation and how to employ them):

Asset Protection Before Divorce

Prenuptial or Postnuptial Agreements.

A prenuptial agreement is signed before a marriage, and a postnuptial agreement is signed during a marriage. Both can be legally binding agreements that essentially allow you to make your own law and specify how assets will be divided and spousal support will be handled in case of divorce. These agreements must be entered into voluntarily, with full disclosure of assets, and include other elements that can help ensure that it holds up if challenged.

You can learn more about prenuptial and postnuptial agreements here.

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Video: Cordover Keynotes Family Law Now Virtual Summit

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Family Diplomacy managing attorney Adam B. Cordover recently gave the keynote address at the Third Annual Family Law Now Virtual Summit. The aim of the Summit is to provide legal professionals and those individuals facing separation, divorce, and other family law matters with vital information, strategies, and tools to support them as they navigate through the process.  The Summit was hosted by veteran Canadian lawyer Russell Alexander and benefitted The Denise House, which provides a safe shelter and supportive programs in Canada for women, with or without children, experiencing gender-based violence.

Examining Models of Collaborative Practice

The topic of the keynote address was “All the Ways to Collaborate: Examining Different Models of Collaborative Practice.”  In the keynote, Cordover urged lawyers to tailor the Collaborative Process to meet the needs of their family law clients.

You can view a video of the keynote, which is about 20 minutes long, below.

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How Are Medical School Student Loans Handled In a Florida Divorce?

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When you’re facing a divorce in Florida, one of the complex financial issues you might encounter is how to handle student loans, particularly medical school student loans. These debts can be substantial, often amounting to hundreds of thousands of dollars, and it’s natural to wonder how they will be treated during the divorce process. Understanding your options and rights is crucial, especially if you and your spouse are seeking a Collaborative Divorce, which focuses on finding amicable solutions privately rather than through a public divorce court battle.

Understanding Marital vs. Non-Marital Debt – Med School Loans

In Florida, the law distinguishes between marital and non-marital assets and debts. Marital debts are those incurred during the marriage, regardless of whose name they are in or who incurred them. Non-marital debts, on the other hand, are typically those incurred before the marriage or after the date of separation.

If you took out medical school loans before you were married, these debts are generally considered non-marital, meaning you would be solely responsible for them. However, if you took out the loans during the marriage, things get a bit more complicated.

Medical School Student Loans as Marital Debt

If your medical school student loans were taken out during your marriage, they will be considered marital debt. This means that both you and your spouse could be responsible for repaying them, even if it was taken out in only one spouse’s name.  If some student loans were taken out prior to the marriage and other medical school debt was taken out during the marriage, then some loans will likely be considered non-marital and other med school loans will be considered marital. In a traditional divorce, this could lead to a lengthy and contentious battle, especially if the loans are significant.  More commonly, especially in a Collaborative Divorce, only one spouse ends up taking responsibility for paying off the marital portion of the loans, while they also typically get something in return to offset the debt.  Alternatively, the other spouse may take on a different set of debts as an offset.

In a Collaborative Divorce, you and your spouse have the opportunity to work together to find a fair and equitable solution. The Collaborative Process encourages open communication and cooperation, allowing both of you to express your concerns and preferences.

At the end of the day, a court will likely order, and most divorcing spouses agree on, an equal distribution of your family’s marital net worth.  So, for example, if your family has a total of $3 million in marital assets and $1 million in marital debts, equaling a net marital estate of $2 million, then likely each of you will end up with around a net worth of $1 million from the marital estate (though most people agree to an equal distribution of your marital assets/debts, you can also agree to an unequal distribution if it makes sense for your family or as an alternative to alimony).  For this reason, when determining how you are going to split your assets and debts, it is important to look at not just one debt, like medical school student loans, but at your family’s full financial picture.

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Cordover Joins Sarasota Collaborative Family Law Professionals

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Family Diplomacy managing attorney Adam B. Cordover has joined the Sarasota Collaborative Family Law Professionals (“SCFLP”) practice group.

About the Sarasota Collaborative Family Law Professionals

SCFLP is similar to a local bar association (it is not a law firm), and it is a membership-based organization made up of independent lawyers, psychologist, therapists, accountants, and financial planners who believe that there are better alternatives to court-based divorce.  Specifically, the group educates professionals and the public about Collaborative Divorce and Family Law, and its members help families through the Collaborative Process.

As stated in the Sarasota group’s brochure, “All members of SCFLP have extensive experience in the area of family law. They are committed to the collaborative process and work together to reach a settlement on fair and equitable terms without the financial and emotional cost that often accompanies litigation. All members of SCFLP have extensive experience in the area of family law, and are licensed by their respective designated professional organization. Each completes the training required by the International Academy of Collaborative Professionals (IACP).”

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Cordover Presents on Collaborative Mediation for International Academy of Collaborative Professionals

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On July 17, 2024 at 1:00 pm Eastern Time, Family Diplomacy managing attorney Adam B. Cordover will co-present a webinar on “Collaborative Mediation: Engaging Mediators in the Collaborative Process.”  The presentation is for the International Academy of Collaborative Professionals and sponsored by OurFamilyWizard.

Adam’s co-presenters are Heather McArthur, co-founder and president of Collaborative Professionals of Central Florida and a Florida Supreme Court Certified Family Law Mediator, and Keith Grossman, a Florida Supreme Court Approved Primary Family Mediation Trainer and president of the Southwest Florida Collaborative Professionals Association.

Click Here to Learn More and Register

Adam’s Philosophy on Collaborative Divorce

Adam’s philosophy is that almost anybody going through divorce can benefit from a Collaborative Divorce, but that we professionals need to have as many tools as possible to help as many families as possible.  Rather than try to force a family into a particular model of Collaborative Practice, we should shape a model to meet that family’s needs.  Many Collaborative Lawyers have heard of models such as One-Coach/Neutral Facilitator, Two Coach, or Lawyer-Only.  This presentation will discuss a different model: Collaborative Mediation.

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