By Carrie Rattle
Founder, Behavioral Cents
A Certified Divorce Financial Analyst (CDFA©) is an industry designated financial expert on helping divorcing couples understand how the financial decisions they make could impact their future.
A CDFA is part of the divorce team. Think of the lawyer as the strategist – they are experts on the law and hired to represent your overall interest when it comes to child custody and financial matters. The CDFA supports the lawyer by helping you understand where you spend your money today, how it will change when you separate, and how it could further change in the future.
Work with you to collect all your financial data to paint a clear picture
Work with you to develop a spending plan so that you are crystal clear on where your money is going now, how much you need for child support and living expenses, and what expenses will be duplicated in 2 households
Assist you in visualizing your desired financial lifestyle post-divorce
Analyze different financial tax scenarios for dividing assets and debts to assist in negotiations
Sounds complex? Yep, that’s why we exist. Divorce is stressful enough without managing all the financial considerations too.
Why Use a CDFA ©?
Financial scenarios need to be calculated for a divorce. Lawyers are typically the most expensive resource in a divorce, so it makes sense to hire a CDFA to complete the financial work rather than a lawyer. Finances are also becoming exceedingly complex as different forms of stock compensations are given to employees, and when the alimony tax laws change, which just occurred in the IRS 2018 tax revisions.
Most clients who hire a CDFA © have a household income of at least $100,000 and their total assets exceed $100,000. CDFA’s often will act as an unbiased support for both sides but may be hired by one side of the divorcing couple to represent them exclusively.
If you’ve never had time to understand were your cash is going, or read all of your financial statements, trying to learn this while in the middle of a divorce is incredibly stressful. CDFA’s are an objective party who help you understand and think clearly.
Where do You Find CDFA’s?
CDFA’s are registered on the IDFA web site (Institute for Divorce Financial Analysts). By going to this site, you are ensured the individuals are qualified. If you’re thinking about divorce, I’d be happy to assist.
Your Personal Money Coach & CDFA©,