What is Divorce Financial Planning?
Planning for the future is an essential part of every divorce settlement. Separating or divorcing couples often face a major transformation in each of their financial circumstances. The bottom line is that two households must survive on the same dollars formerly supporting one. A Divorce Financial Planner is an excellent resource for divorcing couples when they choose to go their separate ways.
By being uniquely qualified to make long-term financial projections, Divorce Financial Planners integrate the methodology of financial planning directly into the divorce process.
Since settlements are in large part financial, Divorce Financial Planners can explain your options, help you set priorities, and lead you through the hard choices ahead.
Settlements achieved are much less prone to problem or error.
By being uniquely qualified to make long-term financial projections, Divorce Financial Planners integrate the methodology of financial planning directly into the divorce process.
Since settlements are in large part financial, Divorce Financial Planners can explain your options, help you set priorities, and lead you through the hard choices ahead.
Settlements achieved are much less prone to problem or error.
How You Benefit
Planning for your future is an essential part of every divorce settlement. Establishing a team to help you through this difficult period is paramount to your well-being.
- Take control of the divorce process
- Gain a clear understanding of your current financial picture
- Gain a clear understanding of your future financial picture
- Be more focused on reaching a fair and workable settlement
- Negotiate more effectively
- Ensure a faster resolution of all financial matters, equitably, for both spouses
- Minimize legal fees
- Minimize taxes
- Maximize marital assets
How We Help
REVIEW CURRENT SITUATION
LONG TERM PLANNING
DIVORCE SETTLEMENT ANALYSIS
POST DIVORCE
- Compile, Organize, and Value Assets
- Analyze Liabilities
- Estimate Immediate Needs
- Prepare Statements of Net Worth
- Develop Realistic Budgets
LONG TERM PLANNING
- Discuss and Prioritize Goals
- Estimate Career Training Cost and Time Horizon
- Estimate Future Earning Potentials
- Estimate College and Educational Costs
- Compare After-Tax Asset Sales
- Project Retirement Needs
- Analyze Insurance Needs
DIVORCE SETTLEMENT ANALYSIS
- Look at After-Tax Proposed Settlements
- Estimate Maintenance Needs
- Analyze Long Term Cash Flow and Net Worth
- Compare and Contrast Settlement Proposals
- Develop Alternate Settlement Proposals
POST DIVORCE
- Oversee Asset Transfers
- Set Up Budgeting and Money Management Systems
- Manage Investments
- Monitor Results
- Update Plans
Top Five Reasons for Hiring a Certified Divorce Financial Analyst™ During the Divorce Process
1) Financial analysis conducted early in the divorce process can save time.
The average length of the U.S. divorce process 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 and terminology of the separation. A Certified Divorce Financial Analyst™ (CDFA™) can explain all financial aspects of the pending decisions and help to empower their client to make educated decisions throughout the proceedings.
2) A CDFA™ can help their client save money during the divorce process.
By using a CDFA™, 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 attorneys, without the client having a clear understanding of all financial ramifications, can be detrimental, time consuming and expensive. CDFA™s can educate their clients by providing a thorough knowledge and understanding of the often-complicated financial decisions.
3) A CDFA™ can help his/her clients to avoid long-term financial pitfalls related to divorce agreements.
Working with a client and their attorney, a CDFA™ can forecast the long-term effects of the divorce 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™s can assist their clients with developing detailed household budgets to help avoid post-divorce financial struggles.
A CDFA™ 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, health insurance and cost of living increases must be taken into consideration when agreeing on a final financial settlement.
5) Using a CDFA™ 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 divorce 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 divorce process.
The average length of the U.S. divorce process 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 and terminology of the separation. A Certified Divorce Financial Analyst™ (CDFA™) can explain all financial aspects of the pending decisions and help to empower their client to make educated decisions throughout the proceedings.
2) A CDFA™ can help their client save money during the divorce process.
By using a CDFA™, 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 attorneys, without the client having a clear understanding of all financial ramifications, can be detrimental, time consuming and expensive. CDFA™s can educate their clients by providing a thorough knowledge and understanding of the often-complicated financial decisions.
3) A CDFA™ can help his/her clients to avoid long-term financial pitfalls related to divorce agreements.
Working with a client and their attorney, a CDFA™ can forecast the long-term effects of the divorce 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™s can assist their clients with developing detailed household budgets to help avoid post-divorce financial struggles.
A CDFA™ 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, health insurance and cost of living increases must be taken into consideration when agreeing on a final financial settlement.
5) Using a CDFA™ 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 divorce 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 divorce process.
