If you’re going through a divorce, you know how confusing the whole process can become. Suddenly, you’re trying to navigate through legal and financial paperwork, all while trying to heal emotionally. While family and friends provide emotional support, experts are those who you turn to for advice in the divorce proceedings. Divorce lawyers may be the first expert that comes to mind, but they aren’t the only one you should consider adding to your team. Certified Divorce Financial Analysts are key to ensuring financial stability throughout the whole process.
Having a financial advisor can help with divorce and litigation challenges. They can also lead to a more precise split of assets and help you create a financial strategy for the future. Below, we discuss the benefits a financial advisor can have on your divorce and future.
What is a Certified Divorce Financial Analyst?
A certified divorce financial analyst (CDFA) has experience in finance or divorce and is certified in divorce finances. CDFAs use their knowledge of tax law, asset distribution, and short term- and long-term financial planning to help couples achieve equitable divorce settlements. A CDFA is required to have a bachelor’s degree, 3 years of relevant experience and pass an exam by the Institute for Divorce Financial Analysts (IDFA).
How Can a CDFA Help?
CDFAs provide financial insight to the divorce process that otherwise would be missed. They utilize the information provided by the clients and attorneys. CDFAs then develop a financial framework and different option’s financial impact to find the best option for affected individuals. More specifically, here is a list of some services CDFAs provide:
- Asset Valuation: Evaluate the true value of assets when others under- or over-value them.
- Asset Division: Create a fair division of assets plan that accounts for asset taxation.
- Alimony Plans: Determine the right amount and duration of alimony.
- Tax Estimates: Find the tax implications of various financial dealings from the divorce.
- Future Focused Financial Strategies: Utilize the assets given in the divorce to create short- and long-term financial plans.
How Do I Get Started With a CDFA?
Regardless of whether you are experiencing divorce in a collaborative, mediated, or litigious environment compiling your financial information is an important step in the divorce process for your CDFA. The more information you can give to the CDFA, the better. To save time and money, hire your CDFA early in the divorce process and gather necessary financial documents.
To benefit from the expertise of the CDFA team at Councilor, Buchanan & Mitchell, please contact Jane Ochsman Rowny or Jordan P. Egert from our divorce and litigation leadership team via our online contact form.
Councilor, Buchanan & Mitchell (CBM) is a professional services firm delivering tax, accounting and business advisory expertise throughout the Mid-Atlantic region from offices in Bethesda, MD and Washington, DC.
