Benefits of Working with a CDFA®

Divorce can be a complex process. Before you agree on a settlement of marital assets, you should gather and analyze all financial information. This includes financials regarding the value of current property and assets and the long-term tax implications of proposed property settlement agreements. You may also want to secure expert witness testimony relating to the financial aspects of your case. Bringing in an experienced CDFA® can be invaluable to help streamline the financial aspects of the divorce. Below are just some of the reasons why working with a CDFA® is a good choice.

Financial Review

It is important to gain a clear and thorough financial picture of both parties at the beginning of the divorce process. Therefore, it’s a good idea to work with a pre-divorce financial counselor that is a CDFA® professional. Your  CDFA® will analyze potential liabilities, develop manageable and realistic budgets, examine tax implications, determine net worth, and prepare financial statements. Together, you will also estimate both parties’ immediate financial needs. Further, CDFA® has extensive experience in the field of providing financial solutions. They are able to help you prepare a financial plan to accommodate your current and future needs. All this work makes a complete financial picture that helps you come up with the best financial solution.

Long-Term Planning

A divorce can have lifelong financial implications. It is crucial to the divorce process that you realistically plan for the future. During this phase, your CDFA® will help you think through your long-term financial goals and objectives. Then, they will provide advice on how to reach those goals and objectives in the most appropriate manner.

Analysis of Divorce Settlement

Once a settlement has been proposed, it is important to critically analyze the financial terms of the property settlement. Does the settlement take taxes into account? If not, is it still fair from a financial standpoint? Are there long-term maintenance needs that are not included in the settlement? Does it take into account how both parties’ net worth will grow over time? Your CDFA® will help you navigate these questions regarding your divorce finances. Further, they will propose alternative settlement possibilities, and compare and contrast them in order to ensure that all of your financial needs will be met, both now and in the future. Of course, you should rely on an attorney to advise you as to the legal implications of your divorce. Remember, a trained CDFA® provides financial solutions and advice, not legal services.

Long-Term Financial Management

Once a settlement has been agreed to, the logistics of the settlement will become a concern. Your CDFA® will help you understand the processes of asset transfer and the management of various plans. Additionally, they will assist you in setting up budgets, monitoring outcomes, and adjusting plans as necessary. A CDFA® is there to help you navigate your divorce finances even after you have left the settlement table.

Final Thoughts…

Overall, working with a trained CDFA® allows you to make informed decisions regarding your finances. Without their valuable input, you cannot be sure that you are getting the most equitable outcome in your divorce settlement.

Of course, you should consult an attorney regarding the legal strategy for your divorce. We can provide you with a list of lawyers in your area upon request. Remember, a trained CDFA® provides financial solutions and advice, not legal services.

Veralynn Morris, the certified divorce financial analyst (CDFA®) at Divorce Financial Solutions, has extensive knowledge of the financial implications of divorce. With over 30 years of experience in the investment and financial planning industry, Veralynn takes a personalized approach to every case. She strives to get to know each client and serve their unique needs. At Divorce Financial Solutions, we offer services to clients in Frederick, Washington, Allegany, Garrett, Howard, Carroll, Montgomery, Prince Georges, Anne Arundel, St. Mary’s, Baltimore and Harford Counties in Maryland.