Along with all of problems and decisions that a divorce case brings, the financial ones often cause some of the most tension. With all of the emotions surrounding money and the weight of the far-reaching consequences of any decisions you make, it can be very beneficial to hire an expert. Not only will this help you to make smarter choices, but it also helps to remove a huge amount of stress over knowing whether or not you’re doing the right thing. A Certified Divorce Financial Analyst, or CDFA, can guide you through the difficult process of the financial side of the divorce.
A CDFA is not an attorney, but rather, they work alongside you, offering their guidance to help you make the best financial decisions for you. They do this by working with you to identify what funds you have and your expenses. They will analyze how it would be best to divide assets, debts, pensions, and other items to look for the advantages and disadvantages of the different options.
While you and your CDFA will consider all of your expenses, another expense you need to think about is the cost of the divorce process itself. Taking your case to court not only removes a large part of your say in the outcome while also making the proceedings open to the public, but it also costs a lot of money. A CDFA can help advise you on the best way to handle your funds during your case whether you take it to court or if you take a different approach such as collaborative divorce.
A CDFA is there to answer any questions regarding finances, and one common issue is the marital home. Most people want to keep it, but doing so may be more harmful than letting it go in the long run. A CDFA will walk the client through the pros and cons of keeping the home as well as other large assets. Once these issues plus the rest of the divorce has been settled, a CDFA will be done advising their client. However, they often direct their clients to a Certified Financial Planner (CFP) who can work with and help to advise their client after the divorce. This helps when readjusting to the financial burdens of living as a single individual, especially if kids are in the picture.
A CDFA can help to take one more burden off of your shoulders during the divorce. They help you make the best long-term and short-term decisions, which helps to reduce stress and give you more financial freedom after your case is settled.