Approved by the Board 4/16/10
KCCL - Financial Professional’s Protocols
INTRODUCTION
These protocols are intended to set forth general best practices for financial specialist members of King County Collaborative Law, not adapted to particular cases. They are not intended to act as a promise of specific treatment with regard to any client or case. These protocols do not preempt any ethical or legal requirements for financial specialists.
1.The financial professional is expected to exercise prudent judgment in accepting or declining a collaborative engagement. Appropriate engagements are those in which: the financial professional is able to be neutral; clients' and lawyers' objectives are consistent with the principles of collaborative law; and there is no indication of dishonesty of purpose or fraud. A financial professional shall decline a collaborative engagement when the financial professional becomes aware of a client or lawyer seeking to use the collaborative process to prepare or gain advantage for litigation.
2The financial specialist should promptly communicate her or his rate and fee structure to the attorneys and other core professional team members. The financial specialist should inform the other team members if their fees are not current. The source of payment of all professional fees should be transparent to all.
3.The role of the financial specialist is to request, gather, analyze and illustrate financial data provided by the parties and lawyers, and to inform the clients and lawyers concerning the clients’ present and reasonably expected future financial condition in a neutral and unbiased manner.
4.Any potential conflict of interest between the financial specialist and any other party or team member must be disclosed to all participants as soon as it becomes known.
5.To ensure coordination and consistency, prior to meeting with the clients for the first time and as needed thereafter, financial specialists should coordinate with the rest of the team members as to the expected scope of services and the frequency of financial specialist meetings. Financial specialists should strive to stay within the agreed scope and frequency, and should promptly inform the rest of the team if the situation warrants change.
6.Financial specialists should promptly upon engagement read and sign the participation agreement for each case, and provide copies to the attorneys.
7.In conjunction with the team, the financial specialist should verify the parties’ interests, goals, and expectations that influence the financial assumptions and analyses.
8.The financial specialist should gather financial details; request information; develop budgets; illustrate the financial situation of the parties; and attempt to identify apparent tax issues. After team consultation, the financial specialist may perform additional functions which may include forecasting cash flows, examining retirement and insurance issues; preparing inventories and financial settlement scenarios; and other mutually agreed tasks.
9.Ifduring the course of a financial specialist’s engagement, a party or lawyer requests services that are beyond the expected scope of the engagement, the financial specialist has a duty to bring this request to the attention of the collaborative team before the additional work may be performed. The financial professional shall not perform tasks beyond his or her level of knowledge and skill and should advise the team when such tasks may be needed.
10.The financial specialist shall make reasonable attempts to verify that all documents have been provided to both parties and their attorneys.
11.The financial specialist shall not provide legal, tax or investment advice during, prior to, or after the financial specialist’s services. This restriction shall apply to all sales and financial planning entities with whom the financial specialist is affiliated. A financial specialist may not provide any services to the parties outside the collaborative process.
12.The collaborative process requires tight coordination between professional team members. Therefore, financial specialists should promptly communicate all information that may impact the process to other professional team members. Communications may include professional team meetings, telephone conferences, and emails. All communications with the clients and lawyers will support the financial specialist’s objectivity and neutrality.
13.The financial specialist should consult with the professional team members as to their preferences with regard to documents and the distribution of copies.
14.The financial specialist should continuously assess the parties, team members (including self), and the issues to ensure that the process may be safe and effective for all.
15.Circumstances may require more interaction with one party or lawyer. In such event, the financial specialist should take reasonable measures to ensure his or her continued neutrality.
16.The financial specialist should promptly respond to emails and telephone calls of participants, and should make efforts to timely schedule meetings and conferences, and make allowance for emergency meetings when reasonably necessary to be responsive to party needs.
17.The financial specialist should promptly review progress notes from joint sessions circulated by the attorneys and coaches. Financial specialists should promptly provide progress notes and/or oral communications summarizing each meeting with the parties to the other team members, and notify the other team members in advance of scheduled meetings. The financial specialist should be part of team conference calls and meetings.
18.Parties and lawyers should receive copies of all written communications and reports between the clients and financial specialist except when, in the financial specialist’s judgment, such communication might be counterproductive to the collaborative process. In that case, the written communication shall be shared with both lawyers.
19.When a client verbally shares information with the financial professional without the other client or lawyer being present, the financial professional should make it clear that the information will be shared with both lawyers. If a client does not readily embrace transparency and full disclosure, the financial specialist professional should inform the professional team and may seek the assistance of both lawyers and coach(es) to address the problem.
20.Items to be discussed in a joint session with attorneys present include, but are not limited to, valuation dates, whether periodic updates are needed, key assumptions in financial modeling, the titling of property, the characterization of property, the separation date, and other key data. The financial specialist shall make a reasonable effort to ensure that the compilation of property and liabilities provided by the clients is complete.
21.If the financial specialist becomes aware of an error in a report, it should be promptly corrected and disclosed.
22. A financial specialist, including any affiliate of the financial professional, is prohibited from entering into a business relationship with either client for at least five (5) years after the engagement has concluded. A financial specialist shall not accept or provide direct or indirect compensation or payment of any kind for referrals of clients to other service providers.
23.The financial specialist should do her/his utmost to empower the parties to actively participate in the process.
24.Financial specialists should be familiar with the protocols for other professions in the Collaborative Law process.
25.Financial specialists should strive to learn, master, and apply interest-based dispute resolution skills and collaborative law practice, including how to help clients develop high end goals and mission statements, interests, express concerns and needs, brainstorming, evaluate the options, and other skills.
26.Financial specialists should have the following qualifications:
a.Facilitative mediation training, interest-based negotiations or comparable training to be approved by the required for KCCL membership.
b.Collaborative Practice training required for KCCL membership.
c.Financial specialists should have substantial work experience in the area of financial analysis and carry the designation of Certified Divorce Financial Analyst, and be in good standing with the Institute of Divorce Financial Analysts.
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