Do You Need a CDFA® in Your Divorce?
More often than not, a CDFA® is a financial planner that after going through the divorce process themselves realizes how invaluable having an unbiased, experienced and empathetic financial advisor can be. As a result, they commit to strengthen their knowledge regarding the financial intricacies of divorce by taking part in the Institute for Divorce Financial Planning’s educational curriculum and exam.
You may have been married to a controlling spouse and still are at the point where you think everything they say must be done, you may have let your spouse handle all financial matters and contributed to the family in other ways, or you may have been fortunate enough to split amicably. Whatever the situation, chances are you are not in the best frame of mind for an immediate in-depth financial education.
A CDFA®’s goal is is to lessen the stress of the divorce process by serving as a financial coach and advisor. Every divorce is unique, but we can help organize the financial data, establish priorities, create projections for the future, evaluate settlements and help develop a plan to move forward. We also hope to mitigate the turmoil divorce can bring by showing clients in black and white what is worth negotiating for and what may need to be let go.
Attorneys are legal experts and serve as the team leader. They will fight for what you need in the future, but those amounts are best determined by going through the financial planning process. Divorce is often the largest financial transaction of most people's life. It only makes sense to have a financial expert as part of your divorce team.
Include Us From the Start
We can be most valuable if contacted in the beginning, when the thought of divorce initially comes up. If the main reasons are financial, we can help spouses get on the same page and maybe have hope of repair. We can also help show what your life might look like if you were forced to choose divorce and help get your ducks in a row on the front end. Once lawyers become involved, and the back and forth begins, emotions heighten, and sometimes poor financial settlement decisions are made in moments of weakness or due to lack of knowledge.
As with most things in life, there is a cost, but there are rarely do overs in divorce. Understanding your assets, your options, and the how each decision you make today may impact your financial future, will give you the confidence needed to be successful moving forward.
This is for informational purposes only. No legal or tax advice is given.