In Less Than Four Minutes, Learn About Certified Divorce Financial Analysts A certified divorce financial analyst is a financial expert who can assist you with the financial aspects of your divorce. Learn more about certified divorce financial analysts, including what they do, what services they offer, how much they charge, and what you should know before hiring one.
Certified Divorce Financial Analyst Definition and Example (CDFA)
A certified divorce financial analyst (CDFA) is a financial expert who can assist you with the financial aspects of your divorce. They frequently collaborate with your divorce lawyer and typically have a background in:- Organizing your finances
- Accounting
- Divorce legislation
- Support for children or alimony
- Property division: personal vs. marital
- estimating the value of retirement and pension funds in the future
- figuring out any divorce payments
- Divorce taxation
How a CDFA Operates
Divorce is costly, and a certified divorce financial analyst can assist you in obtaining the best possible settlement. They can assist you in calculating the cost of living in relation to inflation. That way, your assets will be divided fairly, and you won't be shortchanging yourself when it comes to settling your divorce. A CDFA can assist you in asset splitting by looking at both the short- and long-term financial value of your assets, as well as how they may affect you later in life. They analyze assets using specialized software programmes such as:- a piece of real estate
- Expenses
- Accounts for retirement
- Pensions
- Life insurance
What Is the Most Effective Way to Find a CDFA?
A CFDA is paid on an hourly basis, similar to a lawyer. These rates can vary depending on where you live and the value of your belongings. Hourly rates can range from $150 to $450, though some attorneys may charge more, particularly if the divorce and assets are complicated. The Institute for Divorce Financial Analysts, which was the first to issue CDFAs, can assist you in finding a qualified, certified divorce financial analyst. Important: A CDFA is not a replacement for an experienced divorce attorney. You will almost always need to hire a lawyer or a mediator before hiring anyone else. Before you appoint a certified divorce financial analyst or any other financial professional to help you with your divorce, you should look into their credentials as well as a few other things: Certification: Check for certification from the Institute for Divorce Financial Analysts or another reputable organization. Trust: Divorce is a difficult and emotionally draining experience. Only work with people you can trust and communicate with. Recommendations: There's a good chance you know someone who has gone through a divorce. Inquire if they have used a CDFA that they would recommend. Interview: Don't be afraid to ask a potential CDFA a variety of questions, including how long they've been practicing, their work processes, their typical client profile, and even why they chose to become a CDFA. You'll be able to tell if they'd be a good fit for working with you based on their responses.Is it necessary for me to work with a CDFA?
It's possible that you won't need to hire a certified divorce financial analyst all of the time. If you already work with a financial advisor, they may be able to provide you with a clear picture of your future financial situation and how a divorce might affect it. They've probably also worked out a reasonable monthly budget with you. Tip: If you and your spouse are divorcing amicably, you and your spouse may be able to settle everything with just a mediator and a CDFA, eliminating the need for a lawyer entirely. In the long run, this can save you both money and time. A CDFA is a good option if you and your spouse own a business together, have significant assets, or don't know how to form a budget post-divorce. If you don't have any significant or complicated assets, such as a business or multiple real estate properties, you might be able to save money by doing it yourself.Important Points to Remember
- A certified divorce financial analyst (CDFA) is a skilled professional who can assist in dividing assets fairly during a divorce.
- A CDFA is not a replacement for legal counsel.
- A CDFA can assist you in taking a long-term view of your assets.
- A CDFA may not be necessary if you already have a trusted financial advisor.
