Pre-Divorce: Be Prepared
Do I need a financial expert if I have a divorce Attorney?
A divorce literally can be the largest financial transaction in a person’s life! Therefore, it is highly recommended that you work with a financial expert to fully understand your current and future financial situation and to protect your financial interests. You should think of your divorce as a financial transaction by which the assets and liabilities are to be divided are just one area of your financial circumstances to consider. You may also need to prove or reject the request for spousal and/or child support payments.
In the same way that a divorce attorney is a legal expert who is trained to handle legal issues (such as child custody, support payments) and advocate on your behalf, a Certified Divorce Financial Analyst™ (CDFA™), is trained to analyze your financial data and provide you with sound financial advice related to your divorce. A CDFA™ can provide detailed and clear financial analysis and litigation support to your divorce attorney to help support your financial position in the case settlement. Thorough, objective, analytical and statistical supporting data may be presented to your spouse’s attorney and if necessary, used as evidence in court to support your position.
Using a CDFA™ can save you money and time during the divorce process. A CDFA™ will help provide you with a clearer view of your financial future. With that clarity, you can negotiate a divorce settlement that fully addresses your immediate financial needs, and avoids long-term financial pitfalls due to decisions made during an emotionally difficult time where decisions are often made emotionally rather than by sound financial information.
Working with your family law attorney, a CDFA™ can forecast the long-term effects of various divorce settlement options, including potential tax liabilities and benefits, can develop detailed household budgets to avoid post-divorce financial struggles, and help you determine what your divorce will realistically cost long term with the effects of lost shared revenue, extra expenses, and appreciating and depreciating assets.