Certified Divorce Financial Analyst FAQ’s
1. How does a Certified Divorce Financial Analyst® (CDFA) help divorcing individuals?
The role of the CDFA is to assist the client and his/her lawyer to understand how the financial decisions he/she makes today will impact the client’s financial future. A CDFA offers help determining if your settlement is financially feasible, an objective viewpoint in an emotional situation and customized advice about your special financial needs.
2. How do Certified Divorce Financial Analyst® differ from other financial professionals?
Most financial planners and accountants excel in their chosen field, but they may have little to no training specifically related to the financial issues of divorce. A CDFA is trained to help avoid the common financial pitfalls of divorce by: determining short-term and long-term financial impact of a proposed divorce settlement, offering insight to the pros and cons of different settlement proposals, and creating personalized reports and graphs illustrating the financial status, cash flow and net worth of both parties.
3. I have an attorney, do I need a Certified Divorce Financial Analyst®?
A Certified Divorce Financial Analyst® becomes a part of your “divorce team”, providing litigation support or collaborative support to your attorney, depending on how you are divorcing. One of the main questions regarding divorce is “Am I going to be ok financially?” Finding the right professional to assist with your financial questions is critical to the divorce process. Attorney’s provide legal advice, CDFA’s provide financial advice.
4. What role does a Certified Divorce Financial Analyst® play in gathering financial data?
A CDFA works with the client to identify and collect the financial data from the marriage. From that we evaluate any key financial data related to divorce-income, deductions, living expenses for the husband and wife, real property and liabilities. They are considered the financial specialist in a divorce case which allows the attorney to focus on the legal aspects of the case.
5. Do Certified Divorce Financial Analyst® help only women?
No. CDFA’s are trained to advocate for both men and women. Our main goal is to help clients, male or female, obtain an equitable financial divorce settlement-equitable meaning fair, not equal. Because of the financial complexity of many divorces, we play an active role helping individuals and lawyers sort through the financial issues related to divorce.
What is Collaborative Divorce? What role does a Certified Divorce Financial Analyst perform in a Collaborative Divorce?
Collaborative Divorce is an alternative to divorce without litigation. Collaborative Practice is a voluntary dispute resolution process that is developed to preserve the integrity and dignity of families in conflict.
The CDFA is a financial neutral in a Collaborative Divorce. We work with both parties to understand their existing finances and explain the impact of different settlement options.