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Divorce Financial Analyst

Most financial planners and accountants excel in their chosen field, but they have little or no training specifically related to the financial issues of divorce. When a client asks them for assistance, many financial planners and accountants are unable to provide the information the client needs—or even worse, they are unaware that they do not have the required knowledge and end up finding out what they should have known only after the divorce has been finalized.

A Certified Divorce Financial Analyst® (CDFA®) professional 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. Our role is to make sure that clients and their lawyers fully understand how the financial decisions they make today will impact their financial future. We analyze a settlement proposal before the client signs an agreement that he/she may later regret. Some common mistakes include:

  • Negotiating to keep the home when the client can’t afford it.
  • Not understanding the capital gain taxes upon the sale of the marital home, or how the sale can impact each party.
  • Not looking at the long-term impact of a settlement.
  • Thinking that retirement assets have the same value as an equal dollar amount of non- retirement assets.
  • Not taking into account the effect of deferred taxes when dividing the assets.
  • Not understanding how to divide debt.

Unfortunately, divorce is a fact of life in today’s society. Every year, the divorce rate in the United States hovers around 40% of all couples. A CDFA professional can play a vital role in making sure these divorces do not end in financial disaster, safeguarding the financial future of clients and their families.

A CDFA professional can help clients understand:

  • The difference between personal and marital property.
  • How property is valued and divided.
  • Retirement and pensions.
  • Spousal and child support.
  • Whether the client can afford to keep the house.
  • Tax problems and solutions.

To learn more about how a CDFA professional can put their clients on the road towards a brighter financial future, please schedule a complimentary meeting

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