Certified Divorce Financial Analyst
What is a CDFA?
A CDFA is a Certified Divorce Financial Analyst. Imagine heading out for a night of dancing in your rain boots. Awkward. How about trying to shovel two feet of snow in stiletto heels. Ridiculous! And yet, every day, people ask their divorce lawyers to be their financial guides. It’s the wrong shoe and it just doesn’t fit. Let me introduce you to the right shoe: a Certified Divorce Financial Analyst, or by their acronym CDFA, for ease of fit.
So what do CDFA’s do? What are CDFA’s? These are the people who are trained to deal with all the issues related to divorce and money. Going through a Gray Divorce and focused on retirement and estate planning? A Certified Divorce Financial Analyst can help. Vacillating between a lump-sum payout and on-going support? A divorce financial specialist can show you how options will impact you in the now and in the future.
If you’re thinking to yourself, “Shouldn’t my lawyer be able to do this for me?” you’re so yesterday. Seriously. People who believe lawyers know it all are likely thinking that those running shoes they have go with everything!
Lawyers know the law. Divorce lawyers know divorce law. But dissolving a family and financial units requires more than just a legal eagle. And in today’s turbulent financial climate, most people need a financial expert who can guide you since, regardless of what you’ve had written into your separation agreement, debts, inflation and the Income Tax Act will over-ride it.
How is a Certified Divorce Financial Analyst different than a Lawyer?
Those nagging financial issues inherent to every divorce case are oftentimes the ones that are the most overlooked. CDFA’s are trained to answer questions like:
- How much will it cost to keep the matrimonial home and can I afford it?
- What are the tax liabilities of different assets?
- How will my financial contributions after our date of separation be taken into account?
- Will I have enough money to live?
- How are pensions valued and how can they split in a way most beneficial for all?
- How will our separation affect my children’s college tuition?
- Should child support stop when my child reaches the age of majority?
- How can we minimize the tax impact of support payments?
- How should a business be valued and offset?
- How can we create a budget and plan this separation to work within it?
A CDFA Is A Smart Money Assistant!
If your aim is to “survive” your divorce, you’re aiming too low. Not only do you want to untangle your life, you want to create a solid money foundation on which you can build a new life. And while it will cost money to engage a certified divorce financial analyst, when you do, you won’t have to second guess yourself. No need to ask, “Did I get enough?” or “Was that the right choice?” or “Should I have…” Every step you take is one you can take with confidence.
In case you think a CDFA is only applicable to Gucci-wearing divorcees, that just isn’t so. Among the buy-one-get-one-half-off set, the division of assets, your money, has even more financial implications and a CDFA can make sure that you’ve got a kick-ass plan to get back to right, as fast as possible.
How Do I Save Money On Divorce?
If you go into a divorce settlement with limited financial insights, your shortsightedness can have long-term consequences. Settlements that seem at first, to be workable, may not stand the test of time. A Certified Divorce Financial Analyst can show you how decisions you make today will affect the rest of your life.
CREATING A NEW FUTURE?
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Do you want to understand how Online Mediation can work for you? Book a free JOINT TELEPHONE CONSULT for you and your Spouse. We will gladly explain the entire process and its benefits.
How a Certified Divorce Financial Analyst Can Help With Debt
Could I be on the hook for my spouse’s debts?
YES. Assets belong to the family; and so do debts. Debt is one of the first things that must be addressed in a proper Separation Agreement. When it comes to divorce and money, it’s not enough for your partner to say that they will assume the debt. Your name has to be removed from that debt also. Even if your partner is being reasonable about things, your creditors may not be as cooperative. That is why the financial ties must be severed sooner rather than later.
What does this mean?
When you divorce, it is your marriage that is ending, not your shared financial responsibilities. Even if your spouse gathered debt during the marriage without your knowledge, you may be held responsible for it after the divorce. That is, of course, unless you take the proper, legal actions to sever all financial ties with your ex-spouse and safeguard your money.
I’m afraid of my finances and I’m scared about money…
Understand the ugly truth first: Even the most amicable divorce can leave you in financial ruin. YOU are starting a new phase of your life and YOU need to manage your finances from this day forward.
Be aware of all the accounts you are responsible for, including bank accounts, mortgage loans, credit cards and utilities. If you don’t know how to pay your bills, file your taxes or even balance a check book, it’s time to learn about divorce and money.
What does this mean?
If the mere mention of “finances” makes you groan, you’re not alone. The Common Sense Divorce will help you to learn how to create your own budget, manage your debt, and create a personal financial plan TODAY. At our core, our Mediation and Collaborative processes provide the services of a certified divorce financial analyst who is going to help you to start your new life on the right financial foot.