Using a Certified Divorce Financial Analyst

Female analyst looking at both her computer screens with reports pulled up

This article was written by Freya Robbins

What are the major benefits of using a certified divorce financial analyst in a divorce ?

Many people, both divorcing parties and attorneys struggle with where to place a CDFA in the divorce process and how to use them effectively. So here are some pointers:

1. CDFAs are experts in the finances of divorce. By that I mean they understand not just the complex issues surrounding who normally gets what and why, but also what that is likely to mean to the divorcing party’s finances over the long run. Right now the best example I can think of is what are the implications of taking on a house with a mortgage in a divorce, as opposed to trading it for cash or selling it jointly with your soon to be ex spouse. This is an analysis with far reaching implications in the new real estate market. Now more than ever it may not be a good idea to take the house in the divorce, but to know whether you should or not, takes a financial planning approach that a CDFA is perfectly equipped to bring to the table.

lady holding a smiling piggy bank putting a coin into it to save money

2. CDFAs are an inexpensive addition to the mediation process in your divorce. With your attorneys blessing, they can attend mediation with you to help you determine the wisdom of accepting an offer or making a counter offer. We come to the mediation process with a computer and all the software we need to have you more prepared than the other side, and since preparation is 90% of success, you can rest assured that you will understand why you settled for what you did in the mediation process. You will also understand the likely effects, both long term and short term , on your life.

3. Don’t listen to the untrained when getting a divorce. Your attorney knows the law and you should listen to their advice at all times. By the same token, your attorney is too busy with the law to be an expert in financial planning, so avoid overly simplistic settlements. All too often we are seeing women taking a house as lump sum alimony as the default settlement. Although that can be attractive, it should be measured and analyzed before it is accepted.

stack of file folders filled with papers and documents

4. Extensive work is done by a CDFA long before mediation happens. Typically we meet with our clients 5 to 10 times and with our clients and their attorneys at least 2 to 3 times prior to mediation so that a financial strategy is laid out with many variations. Having an understanding of the possible approaches relieves the stress of mediation and makes for better decision making.

5. After the divorce, a CDFA will help you with account transfers, transfers of IRAs and reconciliation of the settlement to make sure you get what you signed on for. Your attorney then receives a summary of the assets that have been transferred and can close the case or help chase assets if necessary. This is a much more cost effective approach to paying an attorney by the hour to accomplish housekeeping tasks.

photo of money balancing  on one side of the scale and a house balancing on the other side of the scale to balance

6. Finally, you can actually save money by using a CDFA as there are certain financial tasks (like filling out a Financial Affidavit) that you can do using a CDFA, who then coordinates it with your attorney. This leaves your attorney as the CEO of your divorce free to work on the bigger more important ideas, with more information easily available, as well as insight into the implications of any suggested settlement proposals.

7. CDFAs are better versed than attorneys on retirement plan issues. You can avoid costly QDROs and tax errors by consulting a CDFA during your negotiation phase.

A CDFA will typically add two to three thousand dollars to the expense of a divorce. With assets over $250,000 you should consider this as a serious option for improving the quality of your divorce.

If you would like to find out more about how we can assist you, please feel free to call for a complimentary consultation. If you are reading this article and wondering what your options are, it is a nudge to call. If you already have an attorney, it is not too late. Whether you have started down the path of divorce yet or not, we can help you.

Freya Robbins

Freya has been assisting families for years, combining professional training and her own experience in marriage, parenting and divorce; she truly relates to her clients. Freya founded Zollinger Mediation was in 2004, and she has been assisting families with divorce mediation, marital mediation, pre-nuptial and post-nuptial agreements and eldercare mediation since. Freya business is known as The Positive Alternative to adversarial divorce. She educates her clients and shares ideas in a straightforward but accepting way about how to resolve conflict. In addition to her mediation practice, Freya holds a Series 6 License and is licensed to sell Life and Health Insurance, Annuities, Mutual Funds and Retirement plans. She holds a Certification in Long Term Care (CLTC) and is certified as a Chartered Special Needs Consultant (ChSNC). She helps families with special needs as she has a son with Epilepsy. She also cared for both of her parents as they needed assistance with care and in preparation for passing. Freya has written articles for West Coast Woman Magazine, the Observer and has been volunteer speaker for the Women’s Resource Center of Sarasota County. Freya is an advocate for eliminating Childhood Sexual Abuse and serves on the Board of the Child Protection Center in Sarasota, FL. Freya raised her 2 children as a single parent while building her businesses. Freya serves on the board of the Sarasota County Senior Advocacy Council and Josh Provides Epilepsy Support Group. Her most recent claim to fame is her marriage to Loyd Robbins in May of 2015. Love lives again!