Home
Understanding Your Divorce Finances
Financial issues can be the most crucial and most intimidating aspect of ending what you thought would be a life long partnership. Financial problems are usually the main cause leading to a divorce. If a couple can not solve their financial problems during a marriage, there is probably little hope that they will be able to agree on financial issues during a divorce.
Whether your divorce is mediated, collaborative, or litigated; our firm can help you and your soon to be ex-spouse. As a Divorce Financial Analyst, I can illustrate the short/long-term implications of different settlement proposals by factoring in expenses, investment earnings, taxes and inflation. Our clients are then able to make educated decisions.
Start here with preliminary questions on what to expect in your upcoming divorce. I will show you how every decision you make will impact your entire financial picture.
Divorce is never easy, but with the proper advice and direction it is realistic to reach a fair and equitable settlement for both parties. If you happen to be going through a divorce or know someone who might benefit from a free consultation with me, please call and schedule an appointment today.
Divorce Is Never Easy, But It Can Be Financially Fair.
What is a CDFA?
A Certified Divorce Financial Analyst is someone 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.
The Role of a CDFA
The role of a CDFA is to become part of the divorce team and provide litigation support for the attorney and client on financial issues such as:
- The short and long-term effects of dividing property
- Analyzing pension and retirement plan issues
- Calculating the present value of a pension
- Determining the cost basis and capital gains of the marital home
- Determining if the client can afford the marital home or not
- Child Support and Maintenance Calculations
- Evaluating the insurance needs of the client
- Determining earning capabilities of both parties
- Provides the client and attorney with data that shows the financial effect of any given divorce settlement.
- Appears as an expert witness in court or mediation or arbitration proceedings.
- Reveals the tax implications behind the division of any asset
- Has background knowledge of the legal issues of divorce.
- Is trained to interview clients to:
- Collect financial and expense data
- Help them identify their future financial goals
- Develop a budget
- Set retirement objectives
- Determine how much risk they are willing to take with their investments
- Identify what kind of lifestyle they want
- Determine what kind of education they want for their children
The Institute for Divorce Financial Analysts provides the training required to obtain the Certified Divorce Financial Analyst designation. Additionally, the Institute provides ongoing support, continuing education and updated software to the CDFA’s.
Working with Attorneys
When contemplating a divorce, the first professional that comes to mind is an attorney. Typically a financial advisor is not considered until after the divorce becomes final. This can be a huge mistake. Not all attorneys are experts on answering financial questions. Your attorney is an expert in the law, but they do not necessarily know how to answer intricate financial details that concern tax issues, IRS rulings, capital gains, dividing pensions, etc. An attorney and a CDFA can complement each other, especially if your case is litigated. A CDFA can act as an expert witness who has worked on your case right from the start.
If both husband and wife come to agree that they can not compromise on their own private settlement arrangement, then selecting the right attorney becomes a very important decision. Having worked with many credible attorneys in the area, I can assist in matching both parties up with an attorney who will be an advocate for each parties specific needs and concerns. If there is ever a chance that you and your spouse will have outstanding issues, you’re probably better off having legal counsel from the start. I do not provide legal advice, but my expertise can cut the cost of a long court proceeding by paving the way to a fair settlement for each spouse.
