A Certified Divorce Financial Analyst uses a wealth of knowledge and understanding of asset distribution, tax laws and short-and-long-term financial planning to achieve equitable divorce settlements.
Divorce can be tough to navigate, especially financially. If the divorce is amicable, the ideal case, both parties can mutually agree on the division of assets with help from a mediator to handle paperwork.
However, a conflicted divorce will require an attorney. The entire process of court dates, negotiations, attorney meetings and more can quickly turn into an expensive ordeal.
For this reason, many people balk at the idea of hiring yet another professional to help with the divorce, but it could greatly benefit you to do so.
Although a CDFA cannot provide legal advice, unless he/she is licensed, they can give you an in-depth analysis of finances and offer advice to your attorneys.
[Related: Divorce Financial Planning]
Certified Divorce Financial Analyst and the Divorce Process
Clients and attorneys provide information that is used to analyze proposals for the distribution of assets, custody, child support, and alimony.
Then, the CDFA can provide a projection of how this will impact finances in the short and long term. They can also help formulate other options that are beneficial to both parties.
They can even help by giving absolute values of assets, which avoids the risk of under or overestimating their value.
Who Needs a CDFA?
Based on information provided by lawyers.com, couples who own a business together or a significant amount of property would benefit from hiring a CDFA.
This would help them gain a better understanding of the value of their assets, as well as their debts. Additionally, CDFAs can create a customized budget for you based on your post-divorce finances, so that you have a plan in place for your finances.
[Related: Best Financial Advisor]
Issue that We Can Help You With:
Certified Divorce Financial Analysts can provide advice on many things, including, but not limited to:
- Valuing the marital home
- Dividing retirement and pension accounts
- Valuing assets and debts
- Setting up a budget for post-divorce life
- Tax implications of alimony and property division
- The duration and amount of alimony
CDFA Training
It is a very rigorous process to become a CDFA. First, they are required to have two years of legal or financial planning experience. Then, they must complete a four-step modular program and pass the exam created by the Institute of Divorce Financial Analysts.
This program covers tax and financial issues related to divorce settlements. Although a CDFA may be very knowledgeable about divorce, he/she should not be hired as an attorney. You need an experienced divorce attorney to handle your case.
Free Divorce Seminar
Are you facing divorce? Do you need to know more about the process and how it can affect your financial situation?
Join us for a FREE divorce workshop on June 19,2019 where our very own Cecile Hult, a Certified Divorce Financial Analyst, will be speaking. Or you can contact us today to schedule your consultation.
