The impact of divorce on families is painful and profound. Fear, anxiety and confusion are all present, especially when it comes to navigating the financial complexities of divorce. At Hummingbird Wealth Management, we are dedicated to relieving some of the stress that comes with facing the divorce process.
In this process, a Certified Divorce Financial Analyst® can help. Our CDFA™, Laura, is qualified and certified to help you make the decisions that will affect your financial future. Difficult topics, such as alimony, child support, and division of assets are carefully explore.
We know that the process of divorce can be a stressful and overwhelming time. Before you make life-altering decisions, we can help you develop a strategic plan that best fits your needs, lifestyle, and financial future. Your financial settlement should be equitable and fair, focusing on your future and happiness.
When divorce is inevitable, making the right financial decision is important. A lack of financial knowledge, however, can result in a settlement that may not fully be understood. I help clients understand the short-term and long-term effects of their divorce settlement. I act as the professional "sounding board" during and after the very emotional divorce process.
During the Divorce Process….
How will this divorce affect me financially? This is the most common question individuals ask when going through the divorce process. Many divorcees are unaware of the short-term and long-term impacts of the settlement they accept. By hiring a CDFA™, you have someone providing the financial experience and guidance necessary to help you develop creative settlement solutions and evaluate the short and long-term financial impact the settlement will have on you.
At Hummingbird Divorce Management, we will assist you throughout your divorce case and address your following concerns regarding:
- How will I survive financially?
- What does it mean if I accept this settlement?
- Can I afford the house? Should I sell the house?
- What about our retirement accounts?
- What tax liabilities will I be incurring?
- How much support will I receive?
- Will I have to go back to work?
- How will this affect my retirement?
After the Divorce……
Divorce does not have to destroy your financial future. Even if the settlement was far from adequate, it is what you do after the divorce that has the greatest impact on the rest of your life.
Divorce is often about the past. Financial planning is about the future. It's been said "Fail to Plan, Plan to Fail". As drastic as that sounds, there is some truth in it as well.
A Financial Plan, created by our Certified Financial Planner™, Laura, creates a road-map to pursue success.
Creating a financial plan can help you see the big picture and set short and long-term life goals, a crucial step in mapping out your financial future. When you have a financial plan, it's easier to make financial decisions and stay on track to meet your goals. Working with a CFP® professional may help improve your financial well-being and confidence while working to pursue your financial planning goals.
Laura obtained her CDFA™ designation in May 2015 after completing her self study program through the Institute for Divorce Financial Analysts™.
Much like the CFP® designation, the CDFA™ designation has rigorous education requirements, as well as a high level of ethical and professional standards.
ETHICS
CDFA™ practitioners agree to abide by a strict code of professional conduct known as the IDFA™ Code of Ethics and Professional Responsibility, which sets forth their ethical responsibilities to the public, clients, employers, and other professionals.
EXPERIENCE
CDFA™ practitioners must have a minimum of 3 years work experience in a financial or legal capacity prior to earning the right to use the CDFA™ certification mark.
WHY HIRE DURING THE DIVORCE PROCESS?
1) Financial analysis conducted early in the divorce process can save time.
- The average length of the U.S. 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 aspects of the pending decisions and help to empower their clients to make educated decisions throughout the proceedings.
2) A CDFA™ can help their client save money during the divorce process.
- 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 attorney, without the client having a clear understanding of all 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.
3) A CDFA™ can help her clients to avoid long-term financial pitfalls related to divorce agreements.
- Working with a client and their attorney, a CDFA™ professional can forecast the long-term affects of the divorce settlement. This includes details of all tax liabilities and benefits. Developing a long-term forecast for their financial situation is far better than a short-term snapshot. Financial decisions must be made that no only take care of immediate family needs, but retirement needs as well.
4) CDFA™ professionals can assist their clients with developing detailed household budgets to help avoid post-divorce financial struggles.
- 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.
5) Using a CDFA™ professional can reduce the amount of apprehension and misunderstanding about the divorce process.
- 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.