A CDFA looks at both the short- and long-term financial value of your assets. A CDFA can help you ensure you’re getting your fair share of the assets in the divorce. They will consider the present situation as well as your future goals when helping you and your lawyer determine what you want from a settlement. They use specialized software programs to help them analyze assets like:
Real propertyExpensesRetirement accountsPensionsLife insurance
Certified divorce financial analysts can also help divorcing spouses formulate realistic post-divorce monthly budgets. They often work with clients to determine how to afford the lifestyle they want to lead post-divorce or how divorce will affect taxes going forward.
Example of a Certified Divorce Financial Analyst (CDFA)
A certified divorce financial analyst (CDFA) is a trained financial professional who can help you navigate the financial aspects of divorce. They often work with your divorce lawyer and usually come from a background such as:
Financial planningAccountingDivorce law
A CDFA must go through training and certification in order to provide their expertise in the financial implications of divorce. Their areas of expertise include anything that may affect your long-term financial picture, such as:
Alimony or child support Dividing personal vs. marital property Determining the future value of retirement and pension funds Calculating any divorce payments Divorce tax law
How Do I Find a CDFA?
You can find a reputable certified divorce financial analyst via the Institute for Divorce Financial Analysts, the first issuing organization for CDFAs. Before you hire a certified divorce financial analyst or any other financial professional to assist with your divorce, you should check their qualifications along with several other factors:
Certification: Make sure they are a member of the Institute for Divorce Financial Analysts or another reputable organization. Trust: Going through a divorce is a tricky, emotional experience. Only hire professionals you can trust and be open with. Recommendations: If you have a friend or relative who has also gone through a divorce, ask whether they used a CDFA, and if they would recommend using a CDFA. Interview: Don’t be afraid to ask questions of a potential CDFA, such as how long they’ve been practicing, processes for their work, their average client profile, and even why they decided to become a CDFA. Their answers will tell you whether they’d be a good fit to work with you.
Cost of a CDFA
A CFDA charges an hourly rate, similar to that of a lawyer. These rates can vary based on your location and the value of your assets. Hourly rates may range from $150 to $450, although the cost will depend on your location, as well as how complicated the divorce is.
Do I Need to Work With a CDFA?
You might not always need to hire a certified divorce financial analyst. If you already work with a financial advisor, they may be able to give you a good idea of your long-term financial picture and how it may be affected by a divorce. They also have likely already worked out a realistic monthly budget with you. If you and your spouse own a business together, have significant assets, or don’t know how to form a budget post-divorce, then a CDFA is probably a good choice. However, if you don’t have significant or complicated assets like a business or several real estate properties, then you may be able to save money and do it yourself.
