In a world where legal jargon and complex economic theories dominate discussions of spousal and child support, the simplicity of the term "cashflow" might just be the key to resolving 99% of disputes. By focusing on cashflow—essentially, money in versus money out—we can demystify the financial aspects of separations and divorces, offering families a tool they can understand and use without the need for expensive legal interpretation.
The Problem with Legal Jargon
Legal discussions around spousal support and child support are often ensnared in dense economic theories and statutory codes. For the average person, these terms are not just confusing; they're inaccessible, requiring a translator who demands upwards of $450 per hour. Considering that 65% of Americans cannot afford even an hour of a lawyer's time, the legal approach to family financial disputes is fundamentally flawed. Why not, then, equip families with a tool that they can understand intuitively? Enter: cashflow.
A Simple, Transformative Tool
Cashflow breaks down your financial situation into the simplest equation: money in minus money out. By creating four distinct accounts labeled A, B, C, and D—for Activities, Bills, Children, and Dreams—we can begin to reimagine our relationship with money.
Start with Dreams
By focusing first on the Dreams account, we give ourselves permission to imagine what we truly want from life. This vision provides the motivation needed to reassess and reorganize our financial priorities. Most people follow a consistent pattern with their money, and by utilizing four separate accounts, these habits become clear within just 90 days.
The Reality of Legal Disputes Over Money
Fighting over money with the assistance of lawyers is arguably the least productive way to resolve disputes. A lawyer friend from Los Angeles shared how judges were increasingly forcing the sale of family homes during divorce proceedings just to cover legal fees. This harsh reality underscores the necessity of doing the math first, focusing on cashflow rather than letting assets get consumed by legal battles.
A Personal Revelation
My journey towards advocating for cashflow as a tool for dispute resolution began early in my legal career. I once had a managing partner who vehemently opposed settlements, demanding that we extract at least 30% of a family's net worth in legal fees before considering resolution. This approach, focused more on enriching the firm rather than serving the family's best interests, led me to a crucial decision—I left the firm to dedicate myself to helping families settle their disputes in a manner that preserved their finances and dignity.
The Path Forward
In conclusion, the shift towards understanding and managing cashflow is not just about saving money—it's about fostering a healthier approach to financial discussions and decisions. By embracing this method, families can avoid turning their lives and resources into fodder for legal battles.
And for those who seek guidance, Ella, our AI Advocate, stands ready to offer support on demand, proving that the right tools and mindset can indeed lead to better, smarter, and richer lives post-divorce. Remember, it's not just about settling disputes; it's about reimagining your financial future.
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