Divorce is hard enough without having to worry about the financial repercussions. That’s where a Certified Divorce Financial Analyst® (CDFA) comes in. A CDFA® is a specialist trained to help you navigate the financial challenges of divorce. Here’s what you need to know about CDFAs® and why you should consider working with one.
If you’re considering divorce, you probably have questions, perhaps A LOT of questions, about what comes next—especially regarding your finances. How will your assets be divided? Do you know what assets you have? What will happen to your credit score? How will you afford to live on your own? Will you need to work? Will you ever be able to retire?
These are all valid questions, and they’re challenging to answer. But there is someone who can help: a Certified Divorce Financial Analyst®.
A CDFA® is a professional who specializes in divorce financial planning. They receive training in all areas of finance related to divorce, including property division, spousal and child support, tax implications, and more. In other words, a CDFA® is basically a “financial therapist” for people who divorce. And if you’re considering ending your marriage, working with a CDFA® is something you should consider. Here’s why:
1. A CDFA® can help you understand the financial implications of divorce.
There’s no denying that divorce can be emotionally charged. But it’s also incredibly complex from a financial standpoint—and that’s where things can start to get overwhelming. A CDFA® can help demystify the process by breaking down the numbers and explaining what they mean for your unique situation. They can also help you understand how different divorce scenarios (like settling out of court versus going to trial) could impact your finances.
2. A CDFA® working with a couple in a neutral capacity, like a mediator, will take an unbiased approach to your finances.
It’s no secret that money can be a major point of contention during divorce proceedings. And when emotions are running high, it can be difficult to make sound financial decisions—which is where a neutral third party like a CDFA® comes in handy. Because they’re not affiliated with either spouse, they can provide unbiased guidance and recommendations throughout the process.
3. A CDFA® also acts as an advocate in cases going through the court system.
You’ll have someone in your corner looking out for your best interests—including your financial well-being. At the end of the day, the goal of divorce is to reach an agreement that works for both parties involved—but that doesn’t always happen. If you find yourself at an impasse with your ex-spouse, having a Certified Divorce Financial Analyst® on your team ensures that someone is looking out for your best interests—both emotionally and financially.
4. Working with a CDFA® can save you money in the long run.
Divorce isn’t cheap—it can start at $15,000 and run three, four, or even ten times that when all is said and done. But working with a CDFA®, particularly if you’re able to avoid going to trial, could save you money in the long run by helping you reach an agreement that makes sense for both parties involved.
Because a CDFA® works with couples going through a divorce all of the time, they can bring creative solutions to the table (think of it like putting a puzzle together) while avoiding mistakes that can cost thousands of dollars or land you and your ex back in court.
Whether you’re just starting to think about divorce or are already in the midst of proceedings, working with a Certified Divorce Financial Analyst® can make a world of difference. From providing unbiased guidance to helping you understand the financial implications of different scenarios, a CDFA ® will be there every step of the way to ensure that your best interests are always taken into account — emotionally and financially.