Last month I wrote about why I became a Certified Divorce Financial Analyst (CDFA). So, today I want to tell you about what CDFA actually does!
The role of the CDFA is to be a navigator for divorcing parties and their families, guiding them in their discussions to ensure that all financial topics are addressed. This enables sound and informed decisions to be made for everyone involved, so that there are no losers!
- Becomes part of the team of divorce professionals who are providing client support.
- Gathers, organizes, and analyzes relevant financial data: Income, expenses, assets (what is owned), and debts (what is owed).
- Provides information about such topics as:
a. Division of the marital assets - house, bank accounts, retirement plans - even a business
b. Spending considerations for the transition to a new lifestyles
c. Tax laws that apply to divorcing couples
d. After-the-divorce tasks that need to be handled
- Develops budgets for the splitting of one household into two by considering:
a. Earning capabilities of each party
b. Child support requirements
c. Spousal maintenance needs
d. Children’s add-on expenses - which sometimes get overlooked
As the divorcing couple’s ally, a CDFA listens to issues, concerns, and interests; helps set money priorities; builds a realistic picture of the current financial situation; and empowers families to reach a settlement with confidence.
The decisions made today, during the divorce process, will impact everyone’s financial future! A CDFA can make sure that these decisions are the best ones possible based on the circumstances of each particular situation.