Top 5 Reasons for Hiring a Certified Divorce Financial Analyst® (CDFA) During the Divorce Process
1. Save Time
Divorces can take a year or two to complete. One of the most time-consuming pieces is gathering and organizing financial documents and trying to make sense of how they will be divided in a fair and equitable manner. A CDFA® can explain all the financial aspects of the pending decisions and help to empower their client to make educated decisions throughout the proceedings.
2. Save Money
Legal fees can add up quickly especially when attorneys are going back and forth without having a clear understanding of the financial issues that are at stake. It is a waste of time but even a greater waste of money! I see it all the time. Having a clear view of your financial future allows you to approach a legal settlement that fully addresses your financial needs and capabilities. Meeting with a CDFA® can prepare you in advance to avoid the time consuming, expensive communication between your attorney and your spouse’s attorney.
3. Project out your Financial Future
Typically, the first instinct or advice you have or have been given is to hire an attorney as quickly as you can. Not so fast. Divorce settlements boil down to two main concerns: Money/Assets and Custody if there are children involved. Meeting with a CDFA first will arm you with important information regarding the long-term effects of the divorce settlement, including tax liabilities and benefits. Having this information from the beginning will allow you to make financial decisions that impact your current situation and the immediate needs of your family, but also future needs like college and retirement.
4. Determine how Expenses Affect your Future
A CDFA® can assist you with developing a detailed budget to help avoid post-divorce financial struggles. It is important to understand what you can realistically spend each month and what items are necessary as opposed to optional. Knowing what expenses are mandatory, such as life insurance, health insurance and cost of living increases is an important aspect in agreeing on a final financial settlement.
5. Reduce Anxiety and Misunderstanding by Understanding the Economic Impact of your Divorce
Divorce does not usually work out the way it does on TV. Unfortunately, most going through a divorce do not have a realistic frame of reference for the process. This can be detrimental as many have false expectations that they will end up with a settlement that allows them to continue to live in the lifestyle they were accustomed to during the marriage. A CDFA® can provide you with a financial analysis that will ensure a good, stable economic future and prevent long-term regret with financial decisions made during the divorce process.