Divorce is difficult and emotional. It’s not something that people decide on a whim. It’s important to do your research and explore all your options to create a secure financial future for yourself. Hiring a Certified Divorce Financial Analyst (CDFA) before you begin your divorce process is a smart choice as it can help ease some of your stress.
A CDFA can help alleviate the fear of the unknown. S/he will prepare a financial plan for you based on various scenarios, giving you a greater sense of confidence (or at least a reality check) when it comes to your financial future.
Let's face it. Many of us could use a little help when it comes to understanding our finances. We are usually somewhat aware of the day-to-day finances but what about the other components? Retirement accounts, stock-based compensation, home equity, debt? These are things that all need to be evaluated in a divorce. A CDFA will educate you on what you need to know to make the important financial decisions going forward. This can help you to avoid some of those common divorce mistakes.
Another way a CDFA can help is to provide perspective on what is considered “fair” or “equitable”. The State of Ohio is an equitable distribution state but what does that even mean? One thing that is for certain is that equitable is not always equal. A CDFA can do the financial analysis to help you understand what might be considered “fair” with respect to your situation. For example, if you want to keep the marital home, what will you have to give up? If you want to keep your pension intact, what will you be giving up?
A CDFA can help you avoid costly attorney fees. While I always encourage clients to at least consult with an attorney regarding the legal aspects of their divorce, being prepared for that meeting will save you a lot of money. Your CDFA can recommend an attorney who has a good reputation, assist you in collecting all the financial documents you will need, and can help you determine what questions to ask.
It’s not always a smooth path to go through a divorce but being prepared and having professional support can help make the transition easier. Take control of your divorce-related stress and schedule a strategy session today. Together, we will:
Explore your divorce options and get clear on the right solution for your situation
Review your finances
Map out a plan for transitioning to the next phase of your life
Identify your biggest fears and decide the best way to address them
Connect you with any other resources you’ll need in your process