A Certified Divorce Financial Analyst™ (CDFA™) is an individual with experience as a financial planner, accountant or lawyer, and who has completed an intensive training program to become skilled in analyzing and providing expertise related to the financial issues of divorce.
Working in collaboration with divorce attorneys through financial and tax issues during a divorce, a CDFA™ has a foundation of knowledge on topics such as:
- Personal vs. Marital property;
- Valuing and dividing property;
- Retirement plans and pensions;
- Tax problems and solutions;
- Providing litigation support to attorneys;
- Serving as a financial expert in court, and
- Educating individuals on the financial implications of different divorce settlement proposals.
The Role of a CDFA™
Practically speaking, a CDFA™ bridges the gap between what a CERTIFIED FINANCIAL PLANNER™ (CFP®) professional and a Certified Public Accountant (C.P.A.) focus on when analyzing financial scenarios. A CFP® professional is charged with helping individuals achieve their financial goals by identifying those goals and structuring the individuals’ assets to provide a reasonable expectation of realizing their goals based on a set of assumptions. On the other hand, a C.P.A. typically focuses on the details that impact the individuals current situation, with little time spent on projecting tax implications in the future.
To meet the needs of a divorcing individual, a combination of long-term goal planning and current-day financial analysis is necessary. The role of a CDFA™ is to assist the individual and attorney in understanding how financial decisions today will impact the individual’s financial future.
A CDFA™ is responsible for:
- Identifying the short-term and long-term effects of dividing property;
- Analyzing pension and retirement plan issues;
- Determining if the individual can afford the marital home;
- Evaluating the individual’s insurance needs;
- Establishing assumptions for projecting inflation and rates of return, and
- Bringing an innovative and creative approach to settling cases.
A CDFA™ is trained to interview individuals on the following:
- Collect financial and expense data, and develop a budget;
- Develop a budge and identify an appropriate lifestyle;
- Help identify future financial goals such as retirement objectives, and
- Determine investment risk tolerance.
If you have questions, please contact our Henssler Financial at 770-429-9166 or experts@henssler.com to discuss your situation with a Certified Divorce Financial Analyst™.
Disclosures:
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
