FAQ’s – Divorce
Your most frequently asked questions when preparing financially for divorce.
Divorce Financial Planning
Frequently Asked Questions
CDFA® - what is it?
The CDFA® credential is one that many people should know about and can benefit from. A CDFA® professional is someone who comes from a financial planning, accounting or legal background and goes through an intensive training program to become skilled in analyzing and providing expertise related to the financial issues of divorce. Because nearly half of all marriages end in divorce, many of us know a friend, co-worker or family member going through one. Informing them of what a CDFA® can do is a way you can help them.
When going through a divorce, the financial decisions made can have a life-altering effect if bad choices are made. All assets obtained throughout the marriage need to be divided and some of them have built-in tax ramifications, so unless you know how to value them, the assets you negotiate for may not have the after-tax value you think they do. A review of prior year tax returns may even reveal hidden assets or unknown sources of income.
Some divorce attorneys have a basic understanding of finances and tax issues but they do not specialize in it. Their strength is the legal aspects of the divorce. A CDFA® professional can fill an important role in assisting their client and attorney in negotiating a fair, yet favorable settlement. Reducing the attorney’s billable time spent on financial issues and using a CDFA® professional may even lower the total cost of a divorce. In addition, someone who is not the monied spouse may even be entitled to having their professional fees, including CDFA® fees, paid by their spouse.
If you know someone contemplating or is in the midst of a divorce, I would be happy to talk to them. I offer a free initial consultation which is completely confidential.
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