What is a CDFA®?

 The role of a Certified Divorce Financial Analyst CDFA® is to help both client and lawyer understand how the financial decisions made today will impact the client’s financial future, based on certain assumptions.A CDFA® is someone who comes from a financial planning, accounting or legal background and goes through an intensive training program to become skilled in analyzing and providing expertise related to the financial issues of divorce. The CDFA®: becomes part of the divorce team, providing support for the lawyer and client.  A CDFA® can be responsible for:

  • Identifying the short-term and long-term effects of dividing property.
  • Integrating tax issues.
  • Analyzing pension and retirement plan issues.
  • Determining if the client can afford the matrimonial  home – and if not, what might be an affordable alternative.
  • Evaluating the client’s insurance needs.
  • Establishing assumptions for projecting inflation and rates of return.
  • Bringing an innovative and creative approach to settling cases.

The CDFA® also:

  • Provides the client and lawyer with data that shows the financial effect of any given divorce settlement.
  • Is familiar with tax issues that apply to divorce.
  • Has background knowledge of the legal issues in divorce.

 And a CFDA® Is trained to interview clients so as to:

  • Collect financial and expense data.
  • Help client’s identify their future financial goals.
  • Help develop a budget.
  • Set retirement objectives.
  • Determine how much risk they are willing to take with their investments.
  • Identify what kind of life style they want.
  • Determine the costs of their children’s education.