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What CDFAs do as part of your divorce team

by | Sep 4, 2020 | Divorce

If you are getting a divorce in North Carolina, you may want to consider hiring a certified divorce financial analyst. This is a professional who can help you understand your marital finances, assess your needs for after the divorce and make decisions about investments, including retirement.

What is a CDFA?

A CDFA is similar to a financial planner, but this professional has special training in divorce-related issues. Many people are unfamiliar with the concept of a CDFA, and one survey found that just 6% of women hired one in a divorce. Over half of survey respondents said they were not aware of CDFAs at all. Unfortunately, this lack of awareness is more common among individuals who might benefit most from a CDFA, those who are unfamiliar with the marital finances. This unfamiliarity often extends to not knowing which professionals could be helpful in a divorce.

What does a CDFA do?

At the start of a divorce, a CDFA can sit down with you and review your finances. This may include identifying assets that you might not have considered, such as heirlooms or jewelry. The CDFA can then help you look ahead to life after the divorce and figure out what your needs and your children’s needs will be. With this information, you can put together a budget. This information can prepare you for divorce negotiations about property.

Some couples are able to reach an agreement about property division through negotiation with the help of their lawyers. This can be less stressful, less expensive and less time-consuming than litigation, and it leaves both spouses in greater control of the divorce agreement. However, this is not possible in all situations. If they have to go to court, a judge will try to make a decision that allows for all shared property to be divided equitably in accordance with state law.