Divorce is emotionally draining for both spouses. The decision to divorce is never easy especially when children are involved. In a relatively short period of time, there are decisions that the couple has to make that will affect the rest of their life. Many clients sign the divorce papers wondering if they received a good settlement. How can you assure your clients that the best settlement was obtained during divorce negotiations? A certified divorce financial analyst (CDFA) can help.

CDFA’s help clients understand the short and long term financial impacts of any proposed divorce settlement. They also provide valuable information on other financial issues related to the divorce, such as tax consequences, dividing pension plans, continued health care coverage, stock option elections, and much more. Also, CDFA’s provide expert witness testimony in trials and arbitrations. They can provide attorneys with the tools they need to prevail in court.

The attorney and CDFA work hand-in-hand to get the best financial settlement for their client. The CDFA will prepare a report that shows the client/attorney the impact of the proposed settlement over a 20-year period taking into account inflation and taxes. Thus, the clients do not have to wonder how the settlement will affect them in the long term, they will know. This type of financial analysis works well in meditation and collaborative law as well.

CDFA’s are paid a fee for helping couples to distribute their assets fairly. Many divorcing couples find that working with a CDFA can save them money by getting to a settlement faster. Most of the time, it also provides a more equitable distribution of assets. For example, if the wife wants the house because she has emotional ties to it and gives the husband the investment assets, she will be paying out money for a mortgage and upkeep for the house while the investment assets are making money for the husband in interest and dividends. It won’t be long before the wife will have a negative cash flow and net worth while the husband’s net worth and cash flow keeps increasing.

At the end of the divorce process, it is important for both parties to walk away with the peace of mind that the settlement they received is fair. Once the settlement documents are signed, there is no going back. It is important for the couple to feel they have gotten it right the first time. A CDFA can help the clients understand the settlement they are getting, as well as, provide them with the peace of mind that their attorney has created for them the best settlement possible.

If you have any questions, please call me at 336-854-8500 or write me at 3300 Darden Road, Greensboro, NC 27407.

Originally published by North Carolina Association of Women Attorneys