CDFA

From investopedia.com

What is a Certified Divorce Financial Analyst? 
Many people make financial mistakes during divorce that they must live with for years to come. During such a traumatic and emotional time, it can be hard for divorcing couples to see how financial issues will play out over time. Sometimes, partners in a divorce may not even fully understand what they've agreed to. Worse still, divorce settlements can be very tough to change once they've been signed and filed in court. As a result, an increasing number of divorcing couples are turning to certified divorce financial analysts for help.

A CDFA is an expert in the unique financial circumstances that surround a divorce. The professional training for the certification is focused on understanding and estimating the long-term costs of a divorce, because divorce settlements can impact a person's financial picture for a very long time.

Areas of expertise include:

• Tax consequences of divorce agreements
• The process of dividing and valuing property fairly
• Determining how much alimonyand/or child support is appropriate and for how long
• Modeling the future values of retirement and pension funds

Arguably, the greatest value a CDFA provides is an educated outlook toward the future. What seems equitable today may not look so fair when projected into the future, especially after factoring in considerations like inflation, cost of living adjustments, changes in custody agreements and other issues. A CDFA uses unique software programs and solid financial expertise to ensure that today's split of assets and cash flow will still be fair and equitable for years to come.

Doesn't a Lawyer Do That?
When a couple decides to divorce, the first step they usually take is to hire a lawyer. In many states, divorce lawyers often handle every aspect of a couple's divorce, including decisions on how to split assets. However, a lawyer is trained in law, not finance. During the process of legal negotiations, proposals go back and forth between divorcing parties. It isn't long before the financial consequences of all these different proposals can get lost in the shuffle. A CDFA can help to ensure that each party's finances are protected.

However, a CDFA is never a substitute for a good divorce lawyer. Rather, CDFAs work closely with divorce lawyers to facilitate good settlements. Usually, a CDFA can save divorcing couples time and money by quickly deciphering the financial outcomes of legal settlements, thereby helping clients make sensible decisions quickly. Because CDFAs usually charge lower fees than a lawyer, it often makes good economic sense to keep a lawyer focused on the law and let a CDFA analyze the finances.

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