According to a recent study, the average woman's income drops by 41% after divorce, while their expenses increase by 23%.* This means that women need to carefully consider their financial needs and plan their future accordingly. That's where a Certified Divorce Financial Analyst (CDFA) comes in. In this post, we will explain what a CDFA is, why you need one, and how to find one.
Financial matters such as property settlements, alimony payments, and child support can be incredibly complex. Many women going through a divorce struggle with understanding just how these matters will impact their lives long-term. This is where a Certified Divorce Financial Analyst (CDFA) comes in.
What is a Certified Divorce Financial Analyst?
A CDFA is a financial professional trained in helping clients navigate the financial complexities of divorce. A CDFA can help individuals and couples evaluate their assets, liabilities, and future income streams, and develop a financial plan that takes into account their individual goals and financial situation. A CDFA can also provide guidance on issues such as tax implications, budgeting, insurance, retirement planning, and property division.
Why do you need a Certified Divorce Financial Analyst?
There are at least a couple of reasons why you should consider hiring a CDFA when going through a divorce.
First, divorces can be emotionally charged, and it can be difficult to make rational financial decisions when you are going through a stressful time. Additionally, money and finances are charged issues and one of the major reasons couples divorce in the first place so a neutral third party can be helpful or you may hire one for just yourself. A CDFA can provide objective financial advice and help you make informed decisions that will benefit you in the long run.
Second, divorce can have significant financial implications, and it's important to understand the short-term and long-term impact of your decisions. A CDFA can help you evaluate your options and develop a financial plan that protects your interests. They can provide guidance on the financial implications of decisions such as what assets to keep, how to divide assets, how to pay off marital debts, and how a divorce settlement will affect your long-term financial situation. Finally, divorce can be complex and involve a lot of paperwork and legal jargon. A CDFA can help you navigate the process and communicate with your attorney, mediator, or other professionals involved in your case.
How do you find a Certified Divorce Financial Analyst?
Finding a CDFA is relatively easy. You can start by asking for recommendations from your attorney, financial planner, or other professionals. You can also search for CDFA directories online, such as those provided by the Institute for Divorce Financial Analysts (IDFA) or the Certified Financial Planner Board of Standards (CFP Board).
They should be well-versed in the unique issues women face during a divorce, particularly when it comes to financial matters. Additionally, read online reviews and ask for referrals from trusted friends, family members, or professionals in the legal or financial industry. Once you have a list of potential candidates, you should schedule a meeting or consultation to assess their qualifications, experience, and fees. Make sure to ask about their credentials, training, and track record in dealing with divorce cases. You should also ask about their fees and how they are calculated. Some CDFA's charge an hourly rate, while others charge a flat fee or a percentage of the assets involved in your case.
Working with a Certified Divorce Financial Analyst can help you make informed decisions and can provide you with clarity and confidence as you move forward in your post-divorce life. Whether you are just thinking, just starting the divorce process or have already filed, it's never too late to seek professional financial advice. A CDFA can provide you with the expertise and guidance you need to navigate the financial complexities of divorce, so you can move forward with confidence and peace of mind. Remember to do your research and choose a CDFA who is qualified, experienced, and matches your individual needs and goals.
Remember, investing in a CDFA is an investment in your financial future.
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