What is a CFDA and Why You Can’t Afford Not to Have One
It’s safe to say that no one wants to think about or talk about divorce. Trust us, we get it. Divorce is the exact opposite of fun-loving conversation! However, with almost half the country looking for love (or a relationship at the very least), and roughly 50 percent of all marriages ending in divorce, it’s a topic we think should be discussed with as much popularity as love languages. Especially when it comes to your financial future!
“Believing your lawyer can “do it all” is often a woman’s biggest mistake.”
A common mistake that happens when going through divorce is believing that your lawyer can handle all aspects of your divorce. Think about it—you know your family, finances, schedule, and more in intimate detail. Furthermore, your attorney is looking at the situation through the legal lens, not the financial lens. Even the best-intentioned lawyer isn’t building in time to understand the nuances of where you are at financially today and where you want to be, helping you plan (and understand) necessary legal expenses, and educating you on how to avoid common issues and unneeded expenses.
With divorce likely being the single biggest event of a woman’s financial life, you need a team on your side who can effectively navigate you through every financial and tax landmine. To help you understand and take the important steps needed to protect your financial future and personal assets.
Cue Certified Divorce Financial Analysts (CDFA®)
If you are currently going through a divorce or have a friend or family member undergoing the divorce process, you may have heard of the role a CDFA plays and may be wondering if you need one. We are here to say that YES you absolutely do!
Why You NEED to Hire A CDFA
Not only is working with a CDFA like being the most powerful piece on the chess board--the Queen, but all too often couples underestimate the real value of their assets. If you or your spouse own a business, a house, have been investing in retirement and investment accounts, and so much more, hiring a CDFA is really in your best interest! We not only help you understand how to divide those assets fairly, but make sure that each receives exactly what they are entitled to.
Even in cases where you and your soon-to-be-ex don’t have many assets to divide, if you have even the slightest worry about how you will stay on your feet financially after the divorce, a CDFA can help you create a post-divorce budget and a plan for meeting any future financial goals you have.
Additionally, a CDFA can help you determine if you should keep your marital home, identify divorce-related tax consequences, and will, if necessary, testify as an expert financial witness on your behalf during your divorce trial.
Common Misperceptions of Hiring a CDFA
On the surface, the services that a CDFA or a financial planner provide appear very similar. However, a CDFA does NOT sell financial plans or products. When you work with a CDFA, you get an independent, holistic analysis of your financials.
So, why is this important? It’s all in your ROI and financial results! With a CDFA at your side, you get more with our help than without. Because a CDFA specializes in divorce, we are able to bring a focused awareness to your situation and share our knowledge of the financial and tax implications that divorce brings within your state. Our clients typically get at least a 10x Return on Investment!
Furthermore, a CDFA can help you:
Determine the proper amount and duration of spousal support
Build a financial shield
Create a cost-benefit analysis
Protect your financial position to the highest degree possible
So How, Exactly, Does a Certified Divorce Financial Analyst Benefit You?
Putting it simply, a CDFA is a financial professional who can help you not only navigate the financial aspects of divorce, but thrive after the process.
While your attorney may be well versed in legal aspects and have a certain degree of financial knowledge when it comes to divorce, a CDFA is specifically trained to deal with the financial impacts and long-term implications that a divorce can create. A CDFA can also help you determine the cost of living as it relates to inflation and make darn sure that your assets are divided fairly.
We have seen too many women, who were owed so much more, get shortchanged when their divorce was finalized because they didn’t have the proper guidance. In addition to providing an overview of financial strategies and analysis, your CDFA will evaluate more specific issues such as exploring options for property division, negotiating alimony and maintenance, asking the right questions (to get the right answers) and holistically analyzing all the financial pieces.
With a CDFA at your side, you can feel confident knowing that you are getting the very best financial start possible post-divorce because you understand what you are entitled to and how to make sure you are getting it.
Financial Knowledge = Financial Confidence
No matter your marital status or financial situation, the adage “knowledge is power” rings true, especially when it comes to your finances.
If you’re going through a divorce or you see divorce in your near future, hiring a CDFA to prepare a thorough analysis of your finances is an important aspect of NOT signing a marital settlement agreement that will hurt you in the future.
A solid understanding of your entire financial picture can give you the confidence you need to make strong financial decisions post-divorce and throughout the rest of your life. Finding a trusted CDFA, working with them to develop a financial strategy, and making a plan to learn more about finances are great first steps to thriving in your post-divorce life!
While 57% of women say that divorce was a wake-up call for them from a financial standpoint, with a CDFA on your side, you can feel confident knowing that things can and WILL get better.
Empower Yourself Financially in Divorce 💪
Ready to step into your next chapter with a true advocate on your side? Unleash the secrets to financial confidence in my FREE Masterclass. Join now, and let me show you how to stand strong and shine.
