Dealing with a divorce is a stress beyond compare for many people. When you add to that the emotional stress of complicated financial issues that arise during this time, means it is crucial to enlist professional help to assure your money questions are addressed during the divorce. One person who can take a weight off your shoulders is a Certified Divorce Financial Analyst (CDFA).
Consider that nearly one million couples will divorce annually in the United States and during that time they will be faced with some of the most important financial decisions of their lives; this could be especially true for women who have not been involved in the family finances up until this point. Your divorce attorney will handle the legal aspects of the divorce, but you may find you will reap great reward from working with a Certified Divorce Financial Analyst.
What does a Certified Divorce Financial Analyst do?
A CDFA is an experienced financial professional who helps people navigate money issues that come up during a divorce proceeding. When you work with a CDFA, this person can serve as a neutral between the spouses. Remember, though a CDFA is not meant to take the place of a divorce attorney.
Here are items a Certified Divorce Financial Analyst Can help you with:
- Division of assets
- Analysis and negotiation of the divorce settlement
- Marital property
- Joint and separate debts
- Tax implications of the divorce
- Implications to retirement accounts and healthcare coverage
- Planning your financial life moving past the divorce
Who should work with a Certified Divorce Financial Analyst?
If you and your spouse have assets of any significant value – a house, retirement accounts, etc. – the financial ramifications of a divorce can be complicated. When you add to the mix that divorce is such an emotional time, you need to work with someone who is experienced with navigating the financial maze of divorce. Any money missteps you take during this emotional time could lead to far-reaching consequences as you navigate your newly single life.
Working with a CDFA will remove some of the decision-making burden from your shoulders as it relates to your finances during this time. Your CDFA will provide “financial education and support” during the divorce proceedings. This financial professional can help you:
- Examine your lifestyle and its true cost
- Explain the nature of various marital assets
- Inform you of potential tax consequences based on settlement options
Smoothing the financial aspects and implications of your divorce will help you move toward the future with greater clarity, purpose and confidence.