Sometimes, the difference between a rough and a smooth divorce lies in how you handle your finances. Divorce can be financially devastating, leaving one or both parties in a tough spot, but this is where a Certified Divorce Financial Analyst (CDFA) comes in.
The meaning of a CDFA
A CDFA is a divorce financial analyst who has gone through special training to help divorcing couples manage their money during and after the divorce process. They understand the unique financial challenges that divorce can pose, and they are equipped to help couples make sound decisions about their money.
What are the specific functions of a CDFA?
A CDFA can help you understand your financial situation and make informed decisions about property division, spousal support and other divorce-related money matters. For instance, they can help you determine how much your home is worth and how to divide other assets such as retirement accounts. They can also help you understand the tax implications of divorce and develop a financial plan for your post-divorce life.
Additionally, a CDFA can provide divorce coaching to help you and your spouse communicate effectively about money during the divorce process. They can also help you develop coping mechanisms to deal with the stress of divorce. Last but not least, a CDFA can serve as a neutral third party in divorce mediation and can help you reach an agreement that is fair to both parties.
One of the top signs that you need this professional is that you have many assets and/or a complex financial situation. If you own a business, have significant investments or property, or have a high income, you may benefit from the services of a CDFA. Secondly, you may be struggling to communicate with your spouse about money matters. If you are constantly arguing about money or find it difficult to have a constructive conversation about your finances, a CDFA can help you break down barriers and improve communication. Lastly, if you are struggling to make ends meet after divorce, a CDFA can help you develop a budget and financial plan to get back on track.