Do You Know What A CDFA is?

CDFA, Certified Divorce Financial Accountant, CPA for help with divorce, CPA's Autlfired to help with business partnership dissolutionDivorce is difficult. Even when both parties are in agreement that it is time to part ways, things can get contentious. Each partner wants to be certain they are being treated fairly, and fairness can be relative. That is why it is important to use a CDFA, a Certified Divorce Financial Analyst.

The Institute for Divorce Financial Analysts has some pertinent information about what types of things a CDFA can do to make the situation go more smoothly:

CDFA’s Responsibilities and the Team Approach

To best meet the needs of a divorcing client a blend of these two ideologies is needed. To meet this need a new professional designation was created – the Certified Divorce Financial Analyst®. The role of the CDFA® is to help both client and lawyer understand how the financial decisions made today will impact the client’s financial future, based on certain assumptions.

A CDFA® 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. The CDFA®:

  • Becomes part of the divorce team, providing litigation support for the lawyer and client, or becomes a member of a Collaborative Law team.  In either event, the CDFA® will be responsible for:
  • Identifying the short-term and long-term effects of dividing property.
  • Integrating tax issues.
  • Analyzing pension and retirement plan issues.
  • Determining if the client can afford the matrimonial  home – and if not, what might be an affordable alternative.
  • Evaluating the client’s insurance needs.
  • Establishing assumptions for projecting inflation and rates of return.
  • Bringing an innovative and creative approach to settling cases.

The Certified Divorce Financial Analyst® also:

  • Provides the client and lawyer with data that shows the financial effect of any given divorce settlement.
  • Appears as an expert witness if the case should go to court, or in mediation or arbitration proceedings.
  • Is familiar with tax issues that apply to divorce.
  • Has background knowledge of the legal issues in divorce.
  • Is trained to interview clients so as to:
  • Collect financial and expense data.
  • Help client’s identify their future financial goals.
  • Develop a budget.
  • Set retirement objectives.
  • Determine how much risk they are willing to take with their investments.
  • Identify what kind of life style they want.
  • Determine the costs of their children’s education.”

At McCain and Samons we offer free consultations, before you do anything, it is a good idea to set up an appointment and let us assist you in building the right plan for your situation.

Matt and Anthony

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