A Certified Divorce Financial Analyst (CDFA) is a financial analyst trained in the tax and financial issues of divorce, helping to equitably divide assets and explain tax implications. They can work with one person or mediate for both parties, but should be employed by an attorney to preserve attorney-client privilege. Becoming a CDFA requires at least two years of financial planning experience and completion of a training program.
A Certified Divorce Financial Analyst (CDFA) is a type of financial analyst who has received training in the tax and special tax issues of divorce. The training emphasizes understanding the long-term costs and financial consequences of a divorce, including child support, child support, division of property, retirement funds and future taxes. The Certified Divorce Financial Analyst can work with and advise one person or serve as a mediator for both parties. A CDFA does not replace a lawyer, but may work closely with one to facilitate a fair settlement. It is easier to build a career as a Certified Divorce Financial Analyst in a state where collaborative divorce is encouraged.
A CDFA can help a divorced couple identify and equitably divide assets such as property, furniture, vehicles, investment accounts and pension funds. Additional areas of expertise include determining the value of marital property, calculating the appropriate amount of child support and child support, and explaining the tax implications of the settlement. A CDFA can also help set up and manage a post-divorce budget.
A Certified Divorce Financial Analyst can provide the divorcing couple with an objective and informed view of their future finances. A deal can become much less equitable for one or both parties when considerations such as inflation and cost-of-living adjustments. The Certified Divorce Financial Analyst can use software and knowledge to demonstrate how an agreement can evolve over time and thereby help ensure that the final contract’s long-term equity for all involved.
It is advised that the Certified Divorce Financial Analyst be employed by an attorney and not the couple going through a divorce. The attorney-client privilege is preserved if the attorney engages the CDFA; otherwise, anything either party discloses to the Certified Divorce Financial Analyst is admissible in court. As a result, directly contracting a CDFA by the divorcing couple may not be in the best interest of either party.
Becoming a Certified Divorce Financial Analyst requires at least two years of financial planning experience and completion of a program that includes training in personal property versus marriage, taxes, dividing the value of a family home, and using software to analyze the situation. long-term consequences of an agreement. Training can be completed online or in the classroom in two to six months. Two organizations, the Institute for Divorce Financial Analysts (IDFA) and the Academy of Divorce Financial Professionals, currently offer training.
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