Many people make financial mistakes during divorce that they must live with for years to come. During such a traumatic and emotional time, it can be hard for divorcing couples to see how financial issues will play out over time. Sometimes, partners in a divorce may not even fully understand what they've agreed to. Worse still, divorce settlements can be very tough to change once they've been signed and filed in court. As a result, an increasing number of divorcing couples are turning to certified divorce financial analysts for help.
A CDFA™ is an expert in the unique financial circumstances that surround a divorce. The professional training for the certification is focused on understanding and estimating the long-term costs of a divorce, because divorce settlements can impact a person's financial picture for a very long time.
Areas of expertise include:
Arguably, the greatest value a CDFA™ provides is an educated outlook toward the future. What seems equitable today may not look so fair when projected into the future, especially after factoring in considerations like inflation, cost of living adjustments, changes in custody agreements and other issues. A CDFA ™ uses unique software programs and solid financial expertise to ensure that today's split of assets and cash flow will still be fair and equitable for years to come.
Why should I hire a Certified Divorce Financial Analyst? Can’t the attorney or my financial advisor do the same thing?
A CDFA™ has been trained as a divorce specialist in the financial analysis and planning arena. You need a CDFA™ who understands the tax law and other intricacies pertaining to the financial aspects of divorce. An attorney is an expert on the legalities of a divorce and a financial advisor may not be trained in divorce settlements.
What are the true benefits of using a Certified Divorce Financial Analyst?
A CDFA™ can save you an enormous amount of time and legal fees by helping you avoid the long-term financial pitfalls related to divorce agreements. A CDFA™ can help you develop detailed household budgets and work through your financial picture in an easy to understand way to help avoid or minimize post-divorce financial struggles.
How can I know if I can make it on my own financially before I file for divorce?
The best approach is to have a financial analysis completed by the CDFA™ who has specialized software and knowledge about how the tax laws may affect you. They can run different scenarios and help you protect your net worth and cash flow into the future. This is the type of assistance you need to make informed decisions about your future.
What can I do now if I think that we are separating?
Gather up and make copies of all pertinent financial information on your mortgage, insurances policies, bank statements, brokerage accounts, pension and retirement plans, any that has to do with your marital finances. You may want to seek the services of a CDFA™ before you separate. Many clients have benefited from pre-separation planning. When separation occurred, they were well prepared.
I don’t have an attorney. Do I need one? Can you help me?
Yes, you will need an attorney. I’ll be happy to recommend competent family law attorneys for you to choose from.