To understand the role of a CDFA®, we have to first distinguish between a CDFA® and other financial professionals like a Certified Financial Planner® (CFP®) and a Certified Public Accountant or CPA.
A Certified Financial Planner® is a professional that helps people achieve their financial goals regardless of whether they are getting a divorce or are happily married. A CFP typically works with couples providing them with a comprehensive financial plan for achieving their life goals and then helps them implement and monitor their plan, tweaking it along the way on an annual basis so that they achieve the desired outcome in a determined amount of time. Saving for college, retirement planning and estate planning are just a few of the major life goals that financial planners address in a client’s plan. Often times they can also manage investments and sell financial products like life insurance or annuities.
A Certified Public Accountant typically helps individuals and businesses with tax consulting, planning and preparation of their returns based on present day factors. They may be called upon in a divorce to analyze a specific tax issue, like calculating taxes on property to be sold or divided or showing the tax effect of child support and alimony over a very short period of time. They typically do not project further into the future.
While both financial professionals may be a part of the divorce team, only a Certified Divorce Financial Analyst® is uniquely qualified to best meet the needs of a divorcing client by providing both the financial and tax expertise needed to resolve some of the toughest and complicated issues encountered during the divorce process.
Working with a CDFA can greatly improve your chances of receiving a fair and equitable settlement because we can provide you with the important information you need to make informed decisions. How can you negotiate for something if you don’t know what you are fighting for? It is not unusual for one spouse to be less knowledgeable of the finances than the other spouse. This puts the less knowledgeable spouse at a disadvantage.
One of the most common decisions facing a spouse is what to do with the marital home. As a mother, you want to stay in the home with your children so as not to disrupt the status quo. You even go so far as to tell your husband to keep the 401(k) because you want the house. As a father, you want to buy another house so your children have some place nice to come when they are with you, but you are short on cash and need to take on added debt. These are examples of decisions that will be based on emotions rather than on financial fact and they will most likely have negative outcomes. If you don’t understand what the impact of your decision will have on your finances now and in the future, it’s hard to make smart choices.
My job and my passion as a CDFA is to level the playing field and empower you with that information so you feel confident about choosing a settlement scenario that works best for you. With all the changes and emotions that you are going through, having peace-of-mind about signing on the dotted line is paramount to living a good life after divorce.
Having gone through my own divorce, I know how hard it is, but there can be a good life after divorce. Let me help you get there. Call or email me today. Be informed, be empowered…take control of your financial future.
Diane@solutionsfordivorce.com or 978-833-6144
