What Is a Certified Divorce Financial Analyst?

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Obviously, a good Pasadena divorce lawyer is a necessity when you are ready to legally end your marriage. But there are a few other professionals who might be of use during this time in your life. One of these is a Certified Divorce Financial Analyst (CDFA).

A CDFA is a financial planner who can help you evaluate both the short term and long term impact of any proposed divorce settlement. He or she has completed extra training requirements relating specifically to the financial impact of divorce.

The more assets you have, the more benefit you will obtain from hiring a CDFA during the divorce process. A CDFA has a detailed knowledge of the tax consequences of divorce, dividing pension plans, and separating marital assets. However, a CDFA can also assist with issues relating to child support, alimony, retirement planning, and developing a more realistic post-divorce household budget. This can prevent financial struggles, thus making a CDFA's services a wise investment for people of more modest means.

Many people assume that a CDFA is primarily an advocate for a woman to receive a large divorce settlement. However, gender does not play into the advice that a CDFA gives. The role of a CDFA is to help the couple analyze the marriage as if it were a financial contract with a tangible investment from both the husband and the wife.

A CDFA is not trained as a lawyer and can't give legal advice. The role of the CDFA is to work with your Pasadena divorce attorney to help you obtain a settlement that is in your best financial interests.

Some, but not all, CDFAs have training as divorce mediators. If you are interested in obtaining mediation services in addition to financial planning, you will need to inquire about this aspect of the CDFA's background before hiring him or her to handle your divorce settlement.

Your lawyer may be able to recommend a CDFA to assist with your divorce settlement. You can also locate a CDFA in your area by visiting the Institute for Divorce Financial Analysts website.

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