Divorce can impact a person’s future in countless ways, including financially. For Iowa residents who have made the hard decision to split up with their spouse, protecting their financial future often means working with a CDFA.
What is a CDFA?
A certified divorce financial analyst, or CDFA, is a professional who has been trained in finances and often works between you and your divorce lawyer. It’s common for CDFAs to come from backgrounds like divorce law, financial planning and accounting.
The role of a CDFA is to assist in splitting assets in a divorce. They look at not only the short-term financial value of each asset but also the long-term value, painting a fuller and more accurate picture of your assets’ worth.
Do you really need a CDFA?
Divorce expenses tend to add up quickly, and most people going through the difficult process are hesitant to add yet another expense on top of everything else they’re dealing with. It may be tempting to forego a CDFA without much consideration, but it’s often helpful to learn about their services to find out how they might help you.
There are some divorce situations where an individual can take care of their finances without the help of a CDFA. This is particularly the case if you’re already working with a financial advisor; he or she is usually able to break down your long-term financial plan and monthly budgeting.
However, for any divorced couples who share joint ownership of a business or have other types of significant assets, it’s probably a good idea to consult with a CDFA. This is also a wise move for people who need help creating a post-divorce budget.
There are many things to think about when working through a divorce, and it’s important not to take any financial missteps to avoid throwing off your future. You want to ensure that your post-divorce finances are secured.