What is a CDFA?

On Behalf of | May 16, 2022 | Divorce

Colorado couples going through a divorce might need professionals to help with a variety of issues. A certified divorce financial analyst is often brought in to help.

What is a certified divorce financial analyst?

A certified divorce financial analyst is a professional who is skilled in the area of financial aspects of divorce. They have specialized knowledge and training to work with divorcing couples and their attorneys to provide helpful counseling on the financial matters related to divorce and what each party can expect with their money after the divorce is final.

What does a CDFA do?

They often work as part of a team of professionals during a divorce and can provide information about how to divide assets including stock options and pension plans. They can determine how a person can expect to live financially post-divorce.

CDFAs can help individuals who are going through divorces to learn how to budget once their divorce is over. Where a person might have once enjoyed a certain standard of living, it’s possible for that standard to decrease after the marriage ends, sometimes dramatically. A CDFA can also help advise people about matters like spousal and child support and help them come up with a good idea of what to expect whether they are paying or receiving those forms of financial support.

A CDFA can also determine what you might expect with taxes arising from matters like alimony and division of property. They can also help you determine the value of your marital home in the event that you wish to sell it.

CDFAs are commonly used during alternative divorce methods like mediation and collaborative divorce. While they can provide essential advice to divorcing couples about financial matters, they are not able to provide legal advice as they aren’t trained in that area.

If you are going through a divorce and have not been able to work through your financial situation yourself for any reason, or if you and your spouse are co-owners of a business, it might be in your best interest to hire a CDFA.