Divorce Options, Divorce Solutions

What does a CDFA do?

On Behalf of | Jul 29, 2022 | Divorce

Spouses going through a divorce may find the process more challenging than expected. One or both partners may have pressing reasons to end the union, and personal safety may rank among them. However, there are other concerns to address during New Jersey divorce proceedings, including financial ones. Not everyone has a decent working knowledge of personal or business finances, so working with a specialized professional could be helpful.

Divorce-specific financial counselors

A Certified Divorce Financial Analyst (CDFA) might be the professional that someone going through a divorce could seek out. A CDFA is not a credit counselor or someone who addresses non-divorce-related concerns. Instead, a CDFA works with divorcing spouses and their attorneys to facilitate settlement negotiations, among other duties.

A financial settlement can be contentious when both parties are far apart. One spouse may wish to retain the house and other assets, while the other would prefer everything face liquidation and proceeds distribution. Settlement talks could drag, driving up the divorce proceeding’s financial cost while adding more stress. Those who cannot reach an agreement may end up accepting a judge’s decision after a trial. An amicable settlement might be far preferable.

Working with the CDFA

A CDFA could review financial data related to the divorce and provide a report that both spouses and their respective attorneys can analyze. The data might help everyone work towards acceptable asset distribution decisions and determinations for alimony and child support. Be mindful that the judge must agree to the divorce settlement, but a logical and reasonable settlement might not be controversial or unacceptable.

All parties could benefit from hiring an experienced CDFA. Equally beneficial might be any research about CDFAs the spouses perform. Understanding the professional’s role during a divorce may eliminate misconceptions that could undermine the process.