By IDFA

The top five reasons for hiring a CDFA® professional during the divorce process.

1) Financial analysis conducted early in the divorce process can save time.

The average length of the divorce process in Canada 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 of their separation. A Certified Divorce Financial Analyst^® (CDFA) professional can help explain the financial aspects of the pending decisions and help to empower their client to make educated decisions throughout the proceedings.

2) A CDFA professional can help their client save money.

By hiring a CDFA professional, 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 lawyers, without the client having a clear understanding of all financial ramifications, can be detrimental, time consuming and expensive. CDFA professionals can educate their clients by providing a thorough knowledge and understanding of the often-complicated financial decisions.

3) A CDFA professional can help his/her clients avoid long-term financial pitfalls related to separation agreements.

Working with a client and their lawyer, a CDFA professional can forecast the long-term effects of a 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) CDFA professionals can assist their clients with developing detailed household budgets to help avoid post-divorce financial struggles.

A CDFA professional 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, tax obligations and cost of living increases must be taken into consideration when agreeing on a final settlement.

5) Hiring a CDFA professional 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 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 separation or divorce process.