By: Tasha Shadle, Founder and Wealth Management Advisor at Crossover Capital | AAML NJ Gold Sponsor

A Certified Divorce Financial Analyst® (CDFA®) can be an important person in the divorce process, as they deal with the financial aspect of the case. A CDFA® is able to shoulder some of the burden of the hefty workload taken on by family law attorneys, especially given that their specialty lies in fiscally critical manners that can be seriously complex and time consuming. In this article we’ll explore all of the ways that a CDFA® can be of help in divorce cases.

Financial Analysis and Documentation

• Asset and Debt Division: CDFAs® provide identification, classification, and valuation of marital and separate assets and debts. They can outline the division and help to see that the distribution is fair and equitable.

• Income and Expense Analysis: They analyze income streams and expenses of both parties, giving an exact picture about where the couple stands regarding their finances. This analysis is very important to define child support, spousal support, and other financial obligations.

Future Financial Planning

• Post-Divorce Financial Projections: CDFA® creates numerous financial projections to illustrate the long-term consequences of different divorce settlement options. They can also reflect how decisions made at divorce will impact the financial futures of both spouses when considering critical factors such as taxes, retirement, and living expenses.

• Tax Implications: They calculate and analyze the tax impact of the division of property, alimony, or other financial aspects that relate to divorce. This is to make sure that both parties understand what the assets they walk away with will be worth after taxes.

Expert Testimony

• Court Appearances: A CDFA® could testify before the court about the long-term financial ramifications of various settlement proposals. Their knowledge is highly relevant in explaining complicated financial matters to the judge, often a pivotal piece of the arrival at a just settlement.

Settlement Negotiation Support

• Mediation and Negotiation: CDFAs® will, at times, join attorneys in mediation or negotiation sessions to ensure that financial settlements made for the client are realistic and fair. They assist clients in the comprehension of the financial implications of alternatives, allowing the client to make more informed decisions.

Educating Clients and Providing Support

• Financial Education: CDFAs® provide education to the client regarding financial aspects of divorce, budgeting, managing credit, and retirement plans. This empowers the client to make informed decisions and to plan for their future.

• Emotional Support: Although not therapists per se, there is an element of emotional support provided in educating clients on the true financial facts of their situation, which can help reduce anxiety and uncertainty.

Benefits to Family Law Attorneys

By handling financial complexities, CDFAs® make it easier for family law attorneys to focus on legal strategies, negotiations, and client advocacy. As a result of such cooperation, clients may benefit from more efficient case management and lower legal costs through CDFAs®/attorney collaboration, not to mention better results in divorce settlements.

Essentially, the specialized financial knowledge of the CDFA® augments the legal work of family law attorneys to create a much less bumpy road during a divorce for both parties.