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Divorce attorneys regularly manage legal complications, intense negotiations and highly emotional clients. Yet perhaps one of the most overlooked challenges in divorce is navigating through potential financial complexities.
Financial errors in divorce settlements can have a significant impact on clients. Even worse, many of these errors may go undetected until much later — when property is sold, tax bills are due or retirement accounts are tapped.
Rather than needing to manage a couple or an individual’s finances on top of guiding them successfully through divorce agreements, attorneys can outsource this function to designated professionals, including a Certified Divorce Financial Analyst® (CDFA®).
What Is a CDFA?
CDFAs are specially trained experts who provide guidance on financial matters related to divorce. They help attorneys avoid costly mistakes while navigating tax considerations and the financial intricacies of divorce settlements.
To become a CDFA, professionals must pass an exam and complete 30 hours of continuing education every two years.
Although there are roughly 3,000 CDFAs nationwide, these experts are among the divorce industry’s best-kept secrets, as is how significantly one can enhance both the quality of an attorney’s legal practice and the attorney’s ability to help clients protect their financial interests.
Benefits of Retaining a CDFA
A CDFA provides financial advice that is grounded in the specific challenges regarding divorce matters. Additionally, a CDFA professional can help minimize potential liability by ensuring that the financial aspects of the case are handled correctly.
Integrating a CDFA into the divorce process allows attorneys to focus on structuring the legal aspects of a settlement while the CDFA navigates the equally important financial matters. Additionally, when attorneys retain a CDFA directly, the client retains the attorney-client privilege.
Why Financial Errors Are a Serious Concern in Divorce Cases
In many divorces, the house, retirement accounts, and pensions are the biggest assets. If the home's tax details are overlooked or a retirement account or pension isn’t divided correctly, it can lead to unfair settlements and possible legal problems down the road. Most attorneys aren’t trained to dig into these complex financial issues, but a CDFA works with them all the time, and has the expertise to guide the divorce attorney.
