Divorce Financial Planning
Divorce Financial Planning and Divorce Financial Advice from Certified Divorce Financial Analysts (CDFA™)What is a Certified Divorce Financial Analyst (CDFA™)?
A Certified Divorce Financial Analyst (CDFA™) is a divorce advisor who comes from a financial planning, accounting, or legal background and goes through an intensive training program to become skilled at analyzing and providing expertise on the financial issues of divorce.
CDFAs are accredited by the Institute for Divorce Financial Analysts™ (IDFA™), which is the premier national organization dedicated to the certification, education, and promotion of the use of financial professionals in the divorce arena.
Who does a CDFA™ help?
A CDFA™ helps clients determine the short-term and long-term financial impact of any proposed divorce settlement. They also provide valuable information on financial issues that are related to the divorce, such as tax consequences, dividing pension plans, continued health care coverage, stock option elections and much more.
A CDFA™ can also help attorneys by helping the client make financial sense of proposals. CDFA™s give attorneys the tools they need to help prove their case.
How does a Certified Divorce Financial Analyst™ help with divorce financial planning?
A CDFA™ assists clients and clients’ attorneys in understanding how the financial decisions made today will impact the client’s financial future based on certain assumptions. The CDFA™ provides litigation support for the lawyer and client on financial issues such as the following:
- Short-term and long-term effects of dividing property
- Tax considerations
- Analysis of pension and retirement plans
- Calculating the present value of a pension
- Determining the cost basis and capital gains on the sale of the marital home
- Determining if the client can afford the marital home, and if not, what he/she can afford
- Evaluating the insurance needs of the client, and determining if the client qualifies for COBRA
- Determining earning capabilities
- Establishing assumptions for projecting inflation and rates of return
Why hire a CDFA™ when getting a divorce?
The financial issues inherent to every divorce case are often times the ones that are the most overlooked. However, once a divorce settlement has been signed, it’s too late to change it. Certified Divorce Financial Analysts™ are trained to answer the following questions and more for men and women in the process of divorce.
- Who should keep the house?
- How much will it cost to live post-divorce?
- How much alimony is there going to be and for how long?
- Will the custody arrangement affect child support?
- How can the retirement accounts be split and the money accessed?
- How can a business be offset?
- Should a business be valued?
- What is the value of health care benefits?
- Most important of all, will the clients be able to financially survive (and thrive) with the settlement post-divorce?
How does a CDFA™ help assure an equitable divorce for both the higher and lower wage earner?
The financial ramifications of a divorce can be devastating. But with proper planning and help from divorce experts specializing in financially equitable divorce settlements, you can increase your chances of arriving at a settlement that fully addresses your long-term financial needs and your spouse’s too.
What’s missing in most divorce processes is financial expertise. A Certified Divorce Financial Analyst™ is a divorce expert with much experience in divorce financial planning who can forecast the long-term effects of the settlement.
By using a Certified Divorce Financial Analyst™, both partners have a clearer view of their financial futures. Only then can they approach a settlement that fully addresses the financial needs and capabilities of each.
Should a person hire a CDFA™ instead of a divorce attorney?
Definitely not! The Institute for Divorce Financial Analysts™ (IDFA™) highly recommends that any person getting a divorce seek legal counsel. The CDFA™’s role is to assist the attorney as an expert in divorce financial planning, not replace the attorney.
Do CDFA™’s help only men or only women?
CDFA™’s are trained to advocate for men and women throughout the divorce process. The CDFA™ simply interprets the numbers and helps the attorney build a strong case that’s in the client’s best interest.
Can CDFA™’s act as a neutral party divorce mediator to help a couple reach a settlement?
Many CDFA™’s are also trained divorce mediators and often take a role in facilitative mediation and collaborative law. However, a CDFA™ is not a divorce attorney and cannot give out legal advice. The IDFA™ always recommends that any person going through a divorce receive independent legal advice.