Why hire a CDFA™?
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.
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.
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.