All aspects of the end of a marriage can be complicated, but getting through the financial challenges is often one of the worst. Having a certified divorce financial analyst (CDFA) work with you before your divorce is finalized in Florida can make the process easier and more understandable.
What is a CDFA?
Certified Divorce Financial Analysts are professionals who specialize in the financial aspects of a divorce, often working with lawyers and other professionals to help their clients navigate different parts of the divorce settlement, while also offering financial advice for the future. They must undergo a certification process that covers the various obligations and economic concerns unique to the divorce process.
Among the areas of expertise that CDFAs have include:
- Helping you understand personal vs. marital property
- Negotiating for alimony and/or child support
- Determining the future value of retirement, pension funds, and any other investment accounts
- Calculating divorce payments
- Divorce tax law
An essential aspect of a CDFA’s work is determining your future cost of living as it relates to inflation. CDFAs have specialized programs that determine the future short-term and long-term value of your assets. Having a clear picture of how much net worth you have will allow you to set up a budget, determine what your lifestyle will be like post-divorce and how your divorce will affect income taxes going forward.
Do I need a CDFA?
Ending a marriage can be expensive. CDFAs aren’t cheap, but you may find that utilizing the services of one will save you money in the long run. Their goal is to get the most equitable divorce settlement possible. Note that equitable doesn’t always mean a 50-50 property split. Working with a CDFA can help you determine which assets you absolutely must have and which ones are negotiable.
Using the services of a CDFA is a good idea if you and your spouse own a business together or if you have considerable assets to split.