6 Reasons You Should Contact a Certified Divorce Financial Analyst® Before Divorcing

difficult conversation

difficult conversation1.) It could save you time and lead to a better outcome.

From start to finish, the typical divorce takes about a year.  Why so long? (Money issues).  It may take weeks or months for both spouses to fully know their financial potential, where they each stand money wise and what they might want to do next on behalf of their financial well-being.

2.) An “equal split” of assets in a divorce is not necessarily equitable.

Out of a desire for simplicity, some couples want to divide everything 50/50 (or close) and move on.  That may invite a problem, however: the assets may be “equally” divided, but the divorcing spouses may not have equal potential to maintain their standard of living in the future.

A CDFA™ professional can give you a clear picture of where you are at financially and clarify the jargon of wealth management, retirement planning and investing so you can understand the decisions you face, as well as consider your options with confidence.

3.) To plan to avoid making money decisions you may later regret.

Many divorcing couples are financially literate, but a divorce presents major money questions and introduces new financial variables into their lives.  Assumptions about net worth, business valuation, earning potential, and the cost of tuition, elder care or child care may exist – and they may be outdated and inaccurate.

If financial decisions in a divorce are based on assumptions rather than facts, that may open the door to further anger, lingering regrets about decisions that should have been made, and ex-spouses starting the next chapter of their lives on unequal financial footing.  You can plan to avoid this.

4.) To determine what your individual finances will look like once you are apart.

When you divorce, your “financial life” can be turned upside down.  You may find that you have a new set of economic needs – and less household income to address them.

You need financial analysis to answer some important questions and clear up ambiguities.  What could your children’s college education really cost?  What potential to build retirement savings do you have compared to your former spouse?  Who might need more insurance (or money) to respond to health care needs?  Do you need a different type of life insurance?  Finally, what is your divorce really going to cost in the end and what does your budget look like in the interim?

A CDFA™ professional can provide objective financial analysis to you.  This is the core of their work as professionals; they help couples divorce with a thorough understanding of their financial needs, their earning and saving potential, and a plan designed to help spouses build and retain wealth during the next stage of their lives.

5.) It may help you save money.

You have an attorney; your spouse has an attorney.  The settlement gets revised, reviewed, and then revised and reviewed again.  In all the delays and legalese, you end up as confused as you do informed – and that can lead to disappointment when the settlement falls financially short for one or both spouses.

Lawyers play their necessary role, but they cannot provide you with financial advice as they process your settlement.  A CDFA™ professional is not a lawyer, but skilled in assessing the short-term and long-term financial impact of divorce on couples and families.

6.) A CDFA™ recognizes the money issue that the courts often don’t.

A divorce settlement should be crafted to be fair and equitable.  Not all settlements are, however.  Those that fall short often display a lack of short-term and long-term financial perspective.

A CDFA™ professional is trained to analyze a marriage as if it were a financial contract between two parties, with each spouse making a tangible financial investment into the economic partnership.  For a truly equitable divorce settlement, this divorce financial analysis is critical.  It informs the attorneys; it informs the court; it informs the divorcing spouses about their financial present and their financial future.

Affluent couples shouldn’t risk divorcing without financial divorce analysis.  To do so is to risk decidedly unequal financial futures.

A good CDFA™ professional works with the attorney and the client to gauge how a divorce will impact parties over the long run.  The wealth-building potential, the business impact, and the tax ramifications, insurance – it should all be considered, and possibly revised.  You can’t just look at the next year or the next five years.  You also have to think about retirement, your heirs, and your estate.

If you want a financially fair settlement, you want the input of a Certified Divorce Financial Analyst®.  To find one in your area: A CDFA Professional Near Me .