Family dynamics are never perfect
Family dynamics are never perfect.
With almost 50% of all marriages ending in divorce, getting the proper guidance and assistance is crucial. At Verus Financial, we have Certified Divorce Financial Analysts (CDFA) that are trained to help you understand and navigate through the financial impacts of divorce.
What is a Certified Divorce Financial Analyst (CDFA)?
A CDFA is a financial professional who has specialized skills and experience that enables them to analyze the long-term financial impact of divorce. CDFAs have met specific education and experience requirements administered by the Institute of Divorce Financial Analysts. They receive special training in divorce-related financial issues such as tax and property division.
How a CDFA Professional can help
The financial ramifications of a divorce can be devastating. But, with proper planning and expert help from professionals specializing in financially equitable settlements, you can increase your chances of arriving at a settlement that fully addresses your long-term financial needs; and your spouse is too.
What’s missing in most divorce processes is financial expertise. A certified divorce financial analyst professional can forecast the long-term effects of the settlement. By using a CDFA professional, both partners have a clearer view of their financial futures. Only then can they approach a settlement that fully addresses the financial needs and capabilities of each.
CDFA® professionals provide the client and attorney with data analysis that shows the financial effect of any given settlement. They become part of the divorce team and provide support on financial issues such as:
- Understanding the short-term and long-term effects of dividing property
- Analyzing pensions and retirement plans
- Determining if the client can afford the marital home, and if not, what he or she can afford
- Recognizing the tax consequences of different settlement proposals
Five key reasons why you need a CFDA
The average length of the divorce process is one year. In the beginning stages of the process, both parties spend a great deal of time trying to get a clear understanding of the financial aspects and terminology of the separation. A CDFA professional can explain all financial aspects of the pending decisions and help to empower their client to make educated decisions throughout the proceedings.
By using a CDFA professional, you can have a clearer view of your financial future. Only then can you approach a legal settlement that fully addresses your financial needs and capabilities. A legal settlement that floats back and forth between attorneys, without the client having a clear understanding of all the financial ramifications, can be detrimental, time consuming and expensive. CDFA professionals can educate their clients by providing a thorough knowledge and understanding of the often complicated financial decisions.
A CDFA professional can help clients think through what the divorce will really cost in the long run and develop a realistic monthly budget during the financial analysis process. Expenses such as life insurance, health insurance and cost of living increases must be taken into consideration when agreeing on a final financial settlement.
Misinformation and misconceptions about the divorce process can be detrimental. Many have false expectations that they will be able to secure a divorce settlement allowing them to continue with their accustomed style of living. Financial divorce analysis helps to ensure a good, stable economic future and prevent long term regret with financial decisions made during the divorce process.
Resources & Help
Breakdowns and separations are part of life. For better or worse.
All emotion aside, it is imperative that you have a clear understanding of the financial impacts of your martial breakdown and what can be done to ensure you are in the best financial state moving forward.
If you are currently in the midst of a separation and require financial guidance, contact us directly.
If you are looking for additional information and guidance, visit the Divorce Simplified website.
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