The Divorce process can be the most emotional and largest financial transaction a client will ever experience. Whether it be mediation, collaborative, cooperative or a litigated (going to court) divorce our role is to work with you and your team of professionals so your settlement gives you the financial foundation for your future. With early entry into the process, divorce financial planners can provide the comprehensive and accurate financial information necessary to reach a workable agreement. With divorce often being one of the leading causes of Bankruptcy, it is imperative that you understand how your settlement can affect you and your family in the long term.
As Certified Divorce Financial Analysts TM our advisors are trained to understand the various complications arising from divorce. We are also trained in the growing area of Collaborative Divorce and Mediation.
If you are just starting to consider divorce as an option, we can also help you understand the various ways how the divorce process can be achieved.
Top Five Reasons for working with a CDFA™ During the Divorce Process
1) Financial analysis conducted early in the divorce process can save time.
The average length of the U.S. divorce process is one year. In the beginning stages of the process, both parties spend a great deal of time trying to get a clear understanding of the financial aspects and terminology of the separation. A Certified Divorce Financial Analyst® (CDFA™) professional can explain all financial aspects of the pending decisions and help to empower their client to make educated decisions throughout the proceedings.
2) A CDFA can help their client save money during the divorce process.
By using a CDFA™ professional, you can have a clearer view of your financial future. Only then can you approach a legal settlement that fully addresses your financial needs and capabilities. A legal settlement that floats back and forth between attorneys, without the client having a clear understanding of all financial ramifications, can be detrimental, time consuming and expensive. CDFA™ professionals can educate clients by providing a thorough knowledge and understanding of the often-complicated financial decisions.
3) A CDFA™ can help clients avoid long-term financial pitfalls related to divorce agreements.
Working with a client and their attorney, a CDFA™ professional can forecast the long-term effects of the divorce settlement. This includes details of all tax liabilities and benefits. Developing a long-term forecast for their financial situation is far better than a short-term snapshot. Financial decisions must be made that not only take care of immediate family needs, but retirement needs as well.
4) CDFA™ professionals can assist their clients with developing detailed household budgets to help avoid post-divorce financial struggles.
A CDFA™ professional can help clients think through what the divorce will really cost in the long run and develop a realistic monthly budget during the financial analysis process. Expenses such as life insurance, health insurance and cost of living increases must be taken into consideration when agreeing on a final financial settlement.
5) Using a CDFA™ professional can reduce the amount of apprehension and misunderstanding about the divorce process.
Misinformation and misconceptions about the divorce process can be detrimental. Many have false expectations that they will be able to secure a divorce settlement allowing them to continue with their accustomed style of living. Financial divorce analysis helps to ensure a good, stable economic future and prevent long-term regret with financial decisions made during the divorce process.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual, nor intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor