What is a CDFA
A Certified Divorce Financial Analyst is someone who comes from a financial planning, accounting, or legal background and goes through an intensive training program to become skilled at analyzing and providing expertise on the financial issues of divorce.
The Role of a CDFA
- To become part of the divorce team and provides litigation support for the attorney and client on financial issues such as:
- The short and long-term effects of dividing property
- Analyzing pension and retirement plan issues
- Calculating the present value of a pension
- Determining the cost basis and capital gains of the marital home
- Determining if the client can afford the marital home or not
- Evaluating the insurance needs of the client
- Determining earning capabilities
- Establishing assumptions for projecting inflation, and rates of return
- Brings an innovative and creative approach to settling cases.
- Provides the client and attorney with data that shows the financial effect of any given divorce settlement.
- Appears as an expert witness in court or mediation or arbitration proceedings.
- Is knowledgeable about specific tax laws that apply to divorcing couples.
- Has background knowledge of the legal issues of divorce.
- Is trained to interview clients to:
- Collect financial and expense data
- Help them identify their future financial goals
- Develop a budget
- Set retirement objectives
- Determine how much risk they are willing to take with their investments
- Identify what kind of lifestyle they want
- Determine what kind of education they want for their children
The Institute for Divorce Financial Analysts provides the training required to obtain the Certified Divorce Financial Analyst designation. Additionally, the Institute provides ongoing support, continuing education and updated software to the CDFA’s.