If you're seeking or recently faced a divorce, there are distinct financial and tax considerations that need your attention. A Certified Divorce Financial Analyst (CDFA®) at Wealth Avenue can give you a comprehensive understanding of your financial landscape — before, during, and post-divorce — to avoid common financial and tax oversights during divorce proceedings.

What is a Certified Divorce Financial Analyst (CDFA®)?

A Certified Divorce Financial Analyst (CDFA®) is a professional uniquely qualified to guide you through the financial intricacies of divorce. Think of them as specialized financial advisors for divorce scenarios. They offer vital services like cash flow analysis for asset division, strategic tax planning, and distinguishing between community and separate property. To earn the CDFA® title, professionals must have at least three years of experience in financial planning or legal fields, a bachelor’s degree, and must successfully complete specialized coursework and a rigorous examination by the Institute for Divorce Financial Analysts (IDFA™).

How a CDFA® Can Help You During a Divorce:

Working alongside lawyers completing financial analysis to assist in:

• Helping you split marital assets fairly.
• Preparing a comprehensive financial analysis of your pre-, during-, and post-divorce lifestyle to determine whether or not you can maintain the same standard of living.
• Negotiating an acceptable agreement.

This requires analyzing assets and financial items like:

• Real Property: This includes the marital home, vacation homes, and rental properties.
• Personal Property: This includes cars, boats, jewelry, heirlooms, and anything else of value.
• Businesses: If one spouse owns a business, it will need to be evaluated during the divorce proceedings.
• Retirement Accounts: 401(k)s, IRAs, and other retirement accounts will need to be divided between the two spouses.
• Insurance Policies: Life, health, disability, and long-term care insurance policies will need to be evaluated.
• Income: This includes salaries, commissions, bonuses, stock-based compensation, pensions, rental income, and any source of income.
• Expenses: This includes child care, alimony, health care costs, and other expenses.

Post-Divorce:

A CDFA® plays a crucial role in ensuring that your divorce decisions are financially sound, both in the short- and long-term. They work alongside your attorney to bring clarity to the financial implications of your divorce agreement. Importantly, their support extends beyond the completion of legal proceedings, helping you effectively manage and optimize the financial assets you acquire post-divorce.