Collaborative Divorce: A Smoother, Less Costly Path to Financial Separation

July 7, 2025 | Mitchell J. Thompson CFP®, CDFA®, ChSNC®, AEP®

Ending a marriage is never easy, but the way you go about it can make a meaningful difference. Collaborative divorce offers an alternative to traditional litigation—one that emphasizes cooperation, clarity, and long-term financial health.

What Is Collaborative Divorce?

Collaborative divorce is a legal process where both parties work with their own attorneys and a team of neutral professionals—including financial advisors and mental health specialists—to reach a mutually agreeable settlement.

Unlike litigation, which can be combative and expensive, collaborative divorce takes place outside the courtroom. It’s designed to be respectful, private, and goal-oriented.

Key Benefits of the Collaborative Process

One of the most tangible benefits is cost. Legal fees are generally lower, and because the process is more efficient, it often wraps up faster than a traditional divorce.

Emotionally, it tends to be less draining. Instead of court battles, the process encourages open dialogue and mutual understanding.

Couples are guided toward shared goals—protecting children, preserving wealth, and minimizing long-term damage.

How Financial Advisors Fit Into Collaborative Divorce

A financial neutral plays a pivotal role. This professional works with both parties to gather and explain financial data, helping them understand the long-term implications of different settlement options.

This includes everything from asset division and tax consequences to retirement planning and budgeting post-divorce. Their input is essential for creating sustainable outcomes that work for both parties.

Common Misconceptions

Collaborative divorce isn’t limited to couples who get along perfectly. In fact, many who choose this route are dealing with significant conflict, but still value a more constructive process.

You don’t sacrifice legal protection, either. Each person has their own attorney advocating for their interests within a framework that promotes fairness and respect.

Who Collaborative Divorce Works Best For

This approach is especially helpful for families with children, where co-parenting will continue long after the legal proceedings end.

It also serves high-asset or financially complex cases well. The inclusion of financial experts ensures that settlements reflect both current needs and future stability.

Couples who care about legacy—whether that’s preserving family businesses, maintaining reputations, or protecting intergenerational wealth—often find collaborative divorce aligns with their values.

Next Steps: Building a Post-Divorce Financial Life

Once the divorce is finalized, rebuilding begins. This starts with creating a new budget that reflects changed income and expenses.

Retirement plans often need to be reallocated. Investment strategies may shift, and new long-term goals will need to be set.

A thoughtful financial plan can turn a difficult chapter into a more hopeful one.

A Path Toward Clarity and Stability

Collaborative divorce offers a way forward that reduces harm and fosters clearer outcomes. It's a choice to prioritize cooperation over conflict.

At MJT & Associates, we support clients throughout this process—helping them understand their finances, advocate for their future, and transition into their next chapter with confidence.

Image for Mitchell J. Thompson CFP®, CDFA®, ChSNC®, AEP®

Mitchell J. Thompson CFP®, CDFA®, ChSNC®, AEP®

With a wealth of personal and professional experience, I help clients navigate life transitions with a holistic approach to financial planning. From expanding families and education funding to retirement and inheritance, I ensure plans evolve to reflect changing values and goals. Dedicated to my community, I volunteer with the MS Society and Autism Society of Minnesota, and my wife and I founded a nonprofit supporting special needs programs. I hold CFP®, CDFA®, ChSNC®, and AEP® designations and am an active member in industry organizations, committed to providing clear, client-focused guidance through life’s changes.


Through Collaboration, our goal is to help our clients understand the transitions they are going through and may encounter in the future. With Calmness and Clarity, we ensure that when they leave our meetings, they understand the Why of what we are doing to help them navigate those transitions. 

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