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Why should you hire a CDFA?

On Behalf of | Aug 4, 2022 | Divorce

Most divorces involve a complicated division of assets, and some of these transactions might trigger taxable events that could erode an asset’s value. Therefore, it may be a good idea to hire a certified divorce financial analyst (CDFA). A North Carolina CDFA provides insight into how the terms of a divorce settlement might impact both of you now and in the future.

Provides an objective viewpoint

One potential benefit of hiring a CDFA is that this person will view a divorce from a neutral perspective. This is ideal because the end of your marriage may cause you to view financial decisions from an emotional instead of a rational perspective. For instance, you may want to keep the family home because you created a lot of positive memories there. However, retaining control of a house may not make sense financially because it may have negative equity or because it may be too expensive to maintain on your own.

Can work with both spouses

It may be possible to get quality advice and save money by hiring a CDFA to work with both yourself and your spouse. Your financial professional can work as a mediator and facilitate the honest discussions necessary to create an equitable settlement. You may also hire a CDFA to provide advice as to what asset division would be fair.

Do keep in mind, however, that a CDFA does not specialize in resolving issues related to child custody or visitation rights, and most CDFAs are not lawyers, so they cannot provide legal advice. Even so, they are often a valuable part of a legal team during a divorce.

In a divorce settlement, you may be entitled to a share of funds in a marital bank account, a family home or other joint assets. Working with a financial professional may make it easier to weigh your options and negotiate a settlement that allows you to secure a bright financial future for yourself and your children.