Certified Divorce Financial Analyst
What is a Certified Divorce Financial Analyst™?
A Certified Divorce Financial Analyst™ (CDFA™) has earned the credential from the Institute for Divorce Financial Analysts by completing course work and examinations to test competence in the subject matter specific to Financial Planning, Analysis, Accounting and Financial Advisory in Divorce Proceedings. At Pacific Divorce Management we are also Certified Financial Planner™ Practitioners (CFP®). We are trained in divorce specific Mediation and Collaborative Divorce and regularly participate in Family Law specific training along-side attorneys.
How can a CDFA™ help me?
We are experienced, personally and professionally, in the intricacies of financial issues in divorce. A CDFA’s role is to assist the client and his/her attorney to understand how the financial decisions he or she makes today will impact their financial future.
- We will help you build a complete data gathering process, creative strategies and ultimately sound financial decisions so there are no unexpected consequences and the most favorable financial outcome is achieved.
- You will learn about the ramifications of complex subjects such as separate vs. community property, valuing and dividing property, retirement and pensions, spousal and child support, the family residence, tax ramifications and insurance. You will;
- Understand the difference between separate and community property;
- Understand how personal property, intangible and illiquid assets are valued and divided;
- Understand Defined Contribution versus Defined Benefit plans versus Deferred Compensation plans and how they are valued and divided;
- Understand the tax ramifications of Spousal and Child support including recapture and Child Contingency rules;
- Understand the importance of security for support payments.
- You will understand the short and long-term impact of every financial decision you face and we will offer insight into the pros and cons of different settlement proposals so that you may choose the option most consistent with your goals.
- You will receive personalized reports to illustrate your financial status, cash flow, and net worth pre and post divorce. Reports are updated throughout the process to insure you are always prepared.
- We will produce powerful case exhibits for you and your attorney in the form of spreadsheets, graphs and tables that simply and completely convey results of our analysis and help you and your attorney:
- Find hidden and obscure assets and avoid missing something in the settlement;
- Determine income available for Child and Spousal support calculations.
- We will provide reliable expert witness testimony if your case goes to court.
- We will offer you planning strategies and help brainstorm solutions for each and every question or concern.
- We will provide an objective viewpoint during an emotional time to help you:
- Determine whether you can afford to keep the house and how the decision should be carried out if you should decide to do so;
- Understand the law of diminishing returns and when to let it dictate a solution.
- You will avoid the common financial mistakes made in divorce and choose the best settlement options for you and your family.
Most importantly; you will transition successfully into your new financial reality with a game plan for financial independence. You may choose to carry out that game plan through our comprehensive post divorce financial planning program. This program is dedicated to preparing clients for financial independence and long term success during the post divorce transition and beyond. We developed this Financial Planning program with our divorce practice in mind having seen the negative effects of lack of follow through.
How do CDFA’s differ from other financial professionals?
Most financial planners and accountants excel in their chosen field, but they have little to no training specifically related to the financial issues of a divorce. When a client asks them for assistance, many financial planners and accountants are unable to provide the information the client needs – or even worse, they are unaware that they do not have the required knowledge and end up finding out what they should have known only after the divorce has been finalized.
I have an attorney why do I need a CDFA™?
If you are considering or currently navigating a divorce you probably have a lot of questions, most of which boil down to, “Am I going to be OKAY?” Reality is that everyone’s definition of okay is different and everyone’s idea of fair is different. Building a Competent and Trust-Worthy team of advisers that can help you determine what OKAY and FAIR really mean to your family is crucial in this emotional time of your life. There are really three parts to every divorce. The Legal, The Emotional and the Financial. You need an attorney to provide legal advice. You need a CDFA™ to provide financial advice. You need a Mental Health Professional to help you navigate your emotions. A CDFA™ becomes part of your divorce team working with your attorney to provide guidance, education, support and analysis of financial issues to help you make rational and informed decisions.
What role does a CDFA™ play in gathering financial data?
We work with our clients to identify and collect the financial data pertinent to the dissolution of a marriage. From the original data gathering we evaluate any key financial concerns related to divorce – such as income and deductions, living expenses, assets, and liabilities. This process will likely tip us to other information we will need to request. We work with your attorney to compile complete and comprehensive document requests, interrogatories and depositions to insure no stone goes unturned. We have experience in uncovering hidden and obscure assets that have otherwise been missed in other divorces such as Capital Loss Carryforwards, Limited Partnerships, etc.. Once comfortable all data has been gathered we help you and your attorney prepare accurate and defensible schedules of Assets and Debts and Income and Expenses that must be exchanged with your spouse under penalty of perjury. We can save time and money by making sure the financial information is accurate and complete allowing your attorney to focus on the legal aspects of the case.
Who should utilize a CDFA™?
All individuals going though the divorce process will benefit from financial counseling and advice. We work with clients from a variety of backgrounds, including but not limited to: Women individually, Men individually, Families with one primary wage earner, dual income Families, retired individuals and couples, first or second marriages, Families with and without children, Individuals and Families with significant assets and income, Individuals and Families with moderate assets and income and Families or Individuals with significant inheritance or potential inheritance.