A divorce is one of the most difficult things that can happen in life. It may be hard to find a way through the emotional turmoil or disorientation, especially when there are complex assets and finances to deal with. That’s why it may be helpful to work with a Certified Divorce Financial Analyst, or CDFA. What do they do, and how can they help you? Here’s what you need to know.
What is a Certified Divorce Financial Analyst?
In divorce proceedings, many financial issues need to get addressed in order to properly distribute the assets of a divorce between the parties. A CDFA is someone who provides guidance on matters of finances. They can help you make the best possible choices in light of your current divorce situation. They are often skilled in all aspects of divorce, including accounting and tax issues, the law concerning equitable distribution, investments, pensions and retirement assets, children’s needs after divorce, insurance benefits for ex-spouses, alimony or spousal support, and more.
What are the functions of a CDFA?
Their main functions are to provide financial guidance, including plans for individuals and business owners. They can help you address issues like budgeting for future expenses after divorce, child support or alimony payments if necessary, tax planning, financial assessments and audits. A CDFA may also help with protection of your assets during divorce proceedings, including locating hidden funds or accounts that are not in the divorce settlement, identifying possible ways to reduce taxes on income after divorce, and managing debts incurred by either spouse before or during a marriage.
In order to become a CDFA, potential analysts must go through extensive training and exams. The coursework covers the divorce process itself, including tax implications for both spouses as well as property division laws in each state.
One of the most important things to do during a divorce is to ensure that divorce financial issues get handled carefully and skillfully. That’s why divorce guidance from a CDFA may be beneficial.