Certified Divorce Financial Analyst

A Certified Divorce Financial Analyst is a valuable asset during divorce proceedings, both for the clients and the other professionals involved, as they have a thorough understanding of the financial obstacles that arise during divorce

Data Gathering: A CDFA practitioner sorts through client records and creates a balance sheet and cash flow statement. They recognize reasonable cash flow needs and can consult on potentially inflated cash-flow numbers and project future cash needs. They know tax codes and can help identify over-withholding and other tax-related challenges and opportunities.

Managing Expectations: Many couples cannot afford their standard of living with one household, let alone support two households following divorce. Without the counsel of a CDFA, divorced individuals can easily end up with unmanageable debt. They can counsel divorces to manage their expectations about their lifestyle following divorce, as well as help with the nuts-and-bolts of budgeting. Often it is more advantageous to work with a CDFA to help set realistic expectations than it is to evaluate these options alone.

Financial Strategies and Settlement Scenarios: Illustrating different cash flow models under different scenarios This type of data enables attorneys to counsel clients more thoroughly and negotiate more equitable divorce settlements.

Tax and Cash Flow Projections: AJW helps families understand the unique tax considerations surrounding divorce, including evaluating change of filing status, exemptions, tax credits and day care credits. By incorporating these factors into accurate after-tax projections, families can make educated and financially-sound decisions regarding future housing and cash flow.

A CDFA’s knowledge of financial issues specific to divorce is a great benefit to attorneys and individuals going through divorce. Consider utilizing the experience of a CDFA to help resolve your financial issues during and after divorce.

Detailed financial analysis of possible settlement outcomes is a powerful tool for attorneys and clients when negotiating a divorce. A CDFA is experienced in the use of divorce planning software that can test different settlement scenarios. CDFAs can with a side by side comparison of the relative benefits of:

Considering higher spousal maintenance payments over a shorter time period versus lower payments over a longer time period
Evaluating disproportionate property division
Considering reduced standards of living
Calculating the basis of investments
Reviewing tax implications for the sale of investments
Considering the long-term effect of inflation and how it may effect retirement needs
Evaluating risk