What is a CDFA?

CDFA stands for Certified Divorce Financial Analyst. A CDFA is a financial professional who has been certified by the Institute for Divorce Financial Analysis (IDFA). To become certified, individuals must successfully complete intensive training and test requirements set forth by the IDFA. Requirements include completing a comprehensive course of study and passing a four-part exam that tests understanding and knowledge of the financial aspects of divorce. To maintain the CDFA designation, the individual must agree to abide by a code of ethical and professional practice and maintain technical competence through documented continuing education. CDFA practice standards can be reviewed and individual CDFA profiles can be verified at the website of the Institute for Divorce Financial Analysts, www.institutedfa.com

Top Five Reasons for Hiring A Certified Divorce Financial AnalystTM
During the Divorce Process

1) Financial analysis conducted early in the divorce process can save time.
The average length of the U.S. divorce process is one year. In the beginning
stages of the process, both parties spend a great deal of time trying to get a clear understanding of the financial aspects and terminology of the separation. A Certified Divorce Financial Analyst (CDFA) can explain all financial aspects
of the pending decisions and help to empower their client to make educated
decisions throughout the proceedings.

2) A CDFA can help their clients save money during the divorce process.
By using a CDFA, you can have a clearer view of your financial future. Only
then can you approach a legal settlement that fully addresses your financial needs and capabilities. A legal settlement that floats back and forth between attorneys, without the client having a clear understanding of all financial ramifications, can be detrimental, time consuming and expensive. CDFAs can educate their clients by providing a thorough knowledge and understanding of the often-complicated financial decisions.

3) A CDFA can help their clients avoid long-term financial pitfalls related to divorce agreements.

Working with a client and their attorney, a CDFA can forecast the long-term effects of the divorce settlement. This includes details of all tax liabilities and benefits. Developing a long-term forecast for their financial situation is far better than a short-term snapshot. Financial decisions must be made that not only take care of immediate family needs, but retirement needs as well.

4) CDFAs can assist their clients with developing detailed household budgets to help avoid post-divorce financial struggles.
A CDFA can help clients think through what the divorce will really cost in the
long run and develop a realistic monthly budget during the financial analysis
process. Expenses such as life insurance, health insurance and cost of living
increases must be taken into consideration when agreeing on a final financial
settlement.

5) Using a CDFA can reduce the amount of apprehension and misunderstanding about the divorce process.

Misinformation and misconceptions about the divorce process can be detrimental. Many have false expectations that they will be able to secure a divorce settlement allowing them to continue with their accustomed style of living. Financial divorce analysis helps to ensure a good, stable economic future and prevent long-term regret with financial decisions made during the divorce process.

View CDFA Code of Ethics and Professional Responsibilities

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