FAQ: Divorce Financial Planning

What is a Certified Divorce Financial Analyst (CDFA™)?

A CDFA™ is a trained professional, who usually has a financial, accounting or legal background.  A CDFA™ goes through intensive training to analyze & counsel on financial issues before, during and after a divorce.

What services do CDFA™’s offer?

A CDFA™ can provide litigation support for the attorney and client on financial issues such as:

  • The tax & financial effects of dividing property
  • Calculating Spousal and Child Support
  • Tax issues
  • Analyzing pension and retirement plans
  • Preparing Net Worth Statements and Projections
  • 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
  • Determining earning capabilities
  • Establishing assumptions for projecting inflation and rates of return
  • Brings an innovative and creative approach to settling cases
  • Provides the client and lawyer with data that shows the financial effect of any given divorce settlement
  • Appears as an expert witness in court or in mediation or arbitration proceedings
  • Is knowledgeable about specific tax laws that apply to divorcing couples
  • Has knowledge about the legal issues in divorce
  • Analyzes proposed settlements.

A CDFA™ 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.

Who do CDFAs™ work with?

Mediators or Collaborative Divorce Professionals

We can assist in negotiations both in the mediation or the collaborative divorce process. We act as a financial neutral, working with both parties to understand their finances, as well as the results of various settlement scenarios.

Attorneys

Attorneys use our services to consult on their cases or to provide expert testimony on gross income analysis, separate property issues, disposable income analysis, financial needs analysis, maintenance, child support, equitable distribution of marital assets, and many other issues.

Individuals

Individual clients find it helpful to have our assistance in thinking through the financial implications of divorce either when considering or going through the process. Additionally, they help them develop various settlement options which they can discuss with their spouse or attorney.

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