A Certified Divorce Financial Analyst, or CDFA, is a financial professional who can help with all the financial details pertaining to your divorce. This person typically works alongside a divorce lawyer and has a background in finance or accounting. CDFAs undergo special training to become certified, so they can offer essential advice on all financial areas of a divorce.
Why You Should Hire a Financial Planner for Your Divorce
Going through a divorce is difficult enough. However, there are always many aspects to consider during this time. Finances rank as one of the top reasons why married couples end up ending their marriage in the first place.
Women, in particular, are often concerned about the financial aspects of a divorce. If you are going through a contested divorce, things can get sticky when you want your fair share. A certified financial planner can be a valuable tool to have on your side. There are a few benefits to hiring this professional to help you through the process.
A Financial Analyst Can Save You Time
On average, a divorce in the United States takes around one year to finalize. A CDFA can help explain all the pertinent financial aspects of your divorce. This can save you precious time when you know what to expect concerning separation, spousal support and child support if your marriage produced children. You will have the advantage of being able to make better decisions about finances throughout the divorce process.
A CDFA Can Save You Money
In addition to helping their clients understand more about their basic expenses, financial professionals can also save you money. By giving you a better understanding of all the consequences of your financial choices, you will be more knowledgeable about how to make better decisions about your finances.
A Finance Professional Can Help You Avoid Long-Term Financial Problems
Working with a financial planner during your divorce can help you avoid certain long-term financial problems once you are single. CDFAs can inform you about the long-term effects they foresees in your divorce settlement. They will provide you with details about benefits and tax liabilities alike. This can help you avoid pitfalls that you might otherwise be susceptible to if you did not have a financial professional on your side. The issues a financial analyst can coach you about include events in the immediate future as well as those well into the future, such as your retirement.
An Analyst Can Help You Devise a Budget
Your financial professional can help you create a budget for your monthly spending, which can help you stay in check after your divorce has been finalized. This type of advice is practical and can keep you better balanced in terms of your money and expenses. Items such as rent, health insurance, life insurance and other basic living expenses are taken into account.
A CDFA Can Reduce Problems During the Divorce
A financial professional can also reduce certain problems that can arise during divorce proceedings. It is quite normal for confusion, misunderstandings and nervousness to occur during this stage of your life. Many people who legally end their marriage have a false sense that they will be able to obtain divorce settlements that will allow them to continue enjoying the type of daily lives they led while married. Their former spouses may have a different attitude about this, and as a result, issues can arise. Your financial professional can help ease your mind and allow you to retain stability with your finances while preventing financial mistakes from happening during the proceedings.
While a divorce lawyer is definitely an essential asset to have, you will want a financial professional on hand as well. The former is skilled in the area of the law may not know everything that a CDFA does. Having the two professionals working together on your divorce case can ensure that the proceedings go more smoothly so that you can have a positive outcome.
If you live in Pennsylvania and are going through a divorce, contact the Law Office of Joanne Kleiner for a consultation. Our office is located in Jenkintown and can be reached at (215) 886-1266.