calming the waters with financial solutions
The short answer? It depends — on whether you’re the payor or the recipient, how long alimony would be paid for, and even your age.
Before we dive into the pros and cons, let’s first define what an alimony buyout is, why it might be suggested, and when it makes sense — or doesn’t.
Recently, a woman called me feeling lost and powerless. She and her husband were in mediation, trying to work through the terms of their divorce. Her husband works in the financial world, so he had a clear grasp of the numbers, the options, and the process. She, on the other hand, was not well equipped to even participate in the conversations. She was unsure if what was being proposed was actually fair—or if she was being taken advantage of.
Divorce is more than a legal process—it’s a major financial transition. Decisions made during divorce can impact your financial well-being for years, even decades, after the papers are signed. Yet many people go into divorce negotiations without a clear understanding of their financial options, risks, or rights.
That’s where a Certified Divorce Financial Analyst® (CDFA®) becomes a game-changer.
A CDFA brings financial clarity, strategic thinking, and long-term perspective to the divorce process. Whether you’re the financially “in the dark” spouse or the one trying to protect a lifetime of earnings, working with a CDFA empowers you to make smart, informed decisions—and avoid costly mistakes you may not even realize you’re making.
If marriage is about love, then divorce is about the money. And when you’re making decisions that will impact the rest of your life, you need more than just legal guidance. You need a clear understanding of the financial implications of every choice you make.
That’s where a Certified Divorce Financial Analyst® (CDFA®) comes in.
A CDFA is a trained financial professional who specializes in the financial and tax aspects of divorce. We bring clarity, strategy, and long-term thinking to a process mired in emotions and filled with unknowns. Whether you’re the primary earner, a stay-at-home parent, or somewhere in between, working with a CDFA can be one of the smartest decisions you make during your divorce.
Dividing a state pension in divorce can be tricky. Not many divorce professionals fully understand what should be considered when dividing a state pension and major mistakes can be made that will affect both parties. In MA, state employees have an annuity savings account which is the account where the employee’s mandatory contributions go. This account is used to help fund their future pension benefit in retirement and cannot be accessed or divided while the employee is still employed by the state. Unfortunately, many mistakes are made with regards to this account when accounting for and dividing retirement assets in divorce. These mistakes can have devastating financial implications for the owner of the pension.
Recently, I was surprised to learn that I was one of two recipients of the inaugural Lifetime Achievement Award that the Institute for Divorce Financial Analysts® (IDFA) awarded at their 2023 annual conference held in Dallas this past September. The award honors distinguished Certified Divorce Financial Analysts® (CDFA®) across the country who have demonstrated outstanding leadership and have made significant contributions to the industry. The IDFA is the premier national organization dedicated to the certification, education and promotion of the CDFA professional.
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