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Are you considering divorce or perhaps in the beginning stages of a divorce? If so, you are probably in one of the most difficult stages of your life. It is emotionally challenging. It can also be financially difficult.

You will probably need professional help to get through your divorce. A family law attorney can help you with the legal aspects of your divorce. A therapist can help you with the emotional and psychological aspects. A Certified Divorce Financial Analyst® (CDFA) can help you with the financial aspects. Here’s how.


1. Analyze the Full Financial Picture

A CDFA helps assess all assets and liabilities, including retirement accounts, real estate, investments, and debts. They provide a clear overview of the marital estate, ensuring no assets are overlooked and that debts are fully accounted for.

2. Evaluate the Long-Term Impact of Settlement Proposals
A CDFA projects the long-term financial consequences of different settlement options. For example, they can analyze how decisions about the family home, retirement savings, or spousal support will affect your financial future, including cash flow and taxes over time.

3. Division of Retirement Accounts and Pensions

Dividing retirement assets like 401(k)s, IRAs, and pensions can be complicated. A CDFA helps ensure these assets are divided equitably and that any tax implications (such as early withdrawal penalties) are considered, often working with attorneys to draft Qualified Domestic Relations Orders (QDROs) when necessary.

4. Alimony and Child Support Planning

A CDFA can assist in negotiating fair alimony and child support payments. They assess the needs of both parties, considering future income, living expenses, and tax implications, ensuring you receive or pay an amount that supports long-term stability.

5. Tax Implications of Divorce

Divorce has significant tax consequences, from filing status changes to the taxation of alimony. A CDFA can evaluate how the divorce will affect your tax situation, including capital gains on property sales, tax liabilities on divided assets, and changes in deductions.

6. Determine an Appropriate Budget Post-Divorce
Coping with a shift in household income after a divorce can be challenging. A CDFA helps create a detailed post-divorce budget that accounts for current and future expenses, ensuring you can maintain financial stability and plan for retirement.

7. Helping with the Family Home Decision
Whether to keep or sell the family home is a big emotional and financial decision. A CDFA helps you evaluate the costs of maintaining the home versus selling it, including mortgage payments, upkeep, taxes, and potential capital gains implications if sold later.

8. Financial Preparation for Single Life
A CDFA helps you prepare for life as a single person, guiding you on rebuilding your financial foundation. This includes investment planning, managing new streams of income, and ensuring long-term financial security through retirement and estate planning.

9. Identify Hidden or Overlooked Assets
In some divorces, assets can be hidden or undervalued. A CDFA can assist in forensic financial analysis, helping to uncover assets like stock options, deferred compensation plans, and even business interests that may not have been fully disclosed.

10. Collaborate with Legal and Other Professionals

A CDFA works as part of your divorce team, collaborating with your attorney, mediator, or accountant to ensure your financial interests are well-represented. They provide financial insights that help attorneys craft better legal strategies and settlement agreements.

What if I have additional questions?
Please consult with a Certified Divorce Financial Analyst. You can visit the website for the Institute of Divorce Financial Analysts and use their “Find a CDFA Professional” tool.

Contact us today with your financial questions about divorce.

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