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