Is your divorce going to involve the division of a considerable amount of assets? How about a complex mix of assets like multiple properties, investments, businesses and more? Determining not only the short-term implications of how these assets, as well as debts, are divided but the long-term financial and tax implications can be more than most can do on their own.
That’s where a Certified Divorce Financial Analyst (CDFA) can be a valuable addition to your team. While you may not relish the idea of paying yet another professional, a CDFA can end up being worth more than you spend for their services.
What does a CDFA do?
A CDFA is trained and certified to deal with financial decisions faced by people during and after their divorce. They typically work closely with their client and that client’s family law attorney to analyze various options for asset and debt division, alimony and child support. They can do things like:
- Place a valuation on the family home and other large assets
- Determine how much spousal and/or child support is warranted
- Help with the division of retirement accounts
- Establish a post-divorce budget
- Determine the tax implications of keeping certain assets over others
While you and your spouse may have a long and trusted relationship with financial and tax advisors, you don’t want to share those advisors as you divorce any more than you’d share an attorney. You need someone whose loyalty to you is clear. Besides, those advisors likely don’t have the same kind of training as a CDFA.
Another advantage of a CDFA is that they free up your attorney to spend more time on other aspects of the divorce, like your child custody agreement. They also help you make better decisions about what is worth a fight and what you’re better off letting your spouse have if they want it.
If you’re not sure whether a CDFA will bring value to your divorce team, you may want to talk to at least one or two in your area to find out what they have to offer. Your attorney may be able to recommend some with whom they’ve worked successfully in the past.