M o vtN GF O RWARD
I f
ncla
V
\7hat is a Certified DivorceFinancial
Analyst andWhen Do YouNeed One?
By SteveMcBride,CDFA,Mediator
thatwill mostlikelyhavea hugeimdecisions
pacton theirfinancialfuture.
tionalevent,moneyissuesoftenfuelthose
aremorecomplicated
Whilemanysituations
Whetherthedivorceis carriedout
emotions.
thehelpof a
require
definitely
and
financially
valuinganddividwith or withoutattorneys,
thetypi
professional,
financial
traineddivorce
and
maintenance
anddetermining
ing assets
two
a
mortgage,
with
home
has
a
calfamily
childsupportareregularlythefocusof much
credit-card
funds,
retirement
some
vehicles,
the
because
Precisely
andangst.
discussion
Oneor
debt,anda varietyof physicalassets.
makinggooddeciaresoheated,
emotions
thereis
but
often
work,
parties
may
of thedivorce bothof the
sionsaboutthefinancialaspects
power.
The
chalearning
in
their
canbe oneof themostchallenging a difference
settlement
inand
assets
the
dividing
is
lengein divorce
of theprocess.
aspects
the
needs
meet
to
period
of
tlme
(CDFAS) comeovera
Certifieddivorcefinanciaianalysts
of thepartiesandtheirchildrensothattwo
in theworldof diarethefinancialspecialists
canexistin a waythatis perceived
households
vorce,trainedandcertifiedthroughexaminaequal)'Prefer(notnecessarily
to be equitable
tionsby theInstituteof DivorceFinancial
or if necesassets,
the
parties
divide
ably,the
Theysupportclients(andtheirattorAnalysts.
questions
thatoften
will.
The
sary,thecourt
thefinancialdata,presentneys)in collecting
include:
needto be answered
to
ing thedataclearly,helpingeveryone
it, andhelpingto craftsolutions
understand
. CanI keepthehouse,
andif so,canI qualify
thatmeettheneedsof thepartiesandmini
CanI
mortgage?
a
refinanced
for andafford
help
CDFAs
mizethetaximpactof decisions.
kids
the
in
it
until
live
and
affordtheupkeep
andassess
budgets
realistic
clientsdevelop
a
afford
to
I
be
able
Wll
arethroughschool?
theirfuturefinancialneedsby preparingafterI
be
will
or
house,
another
payment
on
down
Many
tax cashflow andnefworthforecasts.
rentingan aPartment?
andreviewand
will valuepensions
CDFAs
. Wll I haveenoughmoneyto livereasonably,
Orders(the
Relations
Domestic
draftQualifled
debtpaymy income,
takingintoaccount
to dividepensions
thatareneeded
documents
child-suppayments,
and
ments,maintenance
and401(k)accounts.)
my
enhance
to
I
need
Do
portpayments?
procanworkfor oneof theparties,
CDFAs
job
that
get
better
a
to
skillsandeducation
or canbe the
vidingthemwith specificadvice,
How
or
flexibility?
provides
moreincome
jointlyappointed
expert,
financial
independent
muchwill thatcost,andhowlongwill it take?
finanby bothpartiesto provideindependent
. Whatwill my retirement
looklike financolcialanalysisandsupportto themediation,
SocialSecurity
account
cially,takinginto
Many
andevenlitigationprocess.
laborative,
funds?
andourdividedretirement
betweenclientsand
CDFAshelpinterface
.
sothatwe
an
agreement
Howcanwe obtain
professionals,
suchasreal-esotherfinancial
pay
and
tax
we
of
minimizetheamount
bankers,
mortgage
realtors,
tateappraisers,
households?
two
for
our
havemoremoney
andinvestment
valuationspecialists,
business
. Whatdo we do with all the debtwe have?
to helpclientsmakeandimplement
advisers
WHILE DIVORCE IS PRIMARILY AN EMO-
March2007
22 f February'
Whoshouldtakehow much,andhow does
the otherpartyprotectitselffromtheongoto
assets
ingliability?Shouldwe liquidate
payoff our debt,or relinancerealestateto
lowerthecostof ourborrowing?
Divorceis oneof life'smoststressfulevents
if youhavethesupbutit canbe lessstressful
clearlythe finanportto helpyouunderstand
youwill be
of thedecisions
cialimplications
arenot ableto help
making.Oftenattorneys
of
clientsseeall the financiaiimplicatlons
andprovidethemwith thedetheirdeclsions
tailedfinancialsupportneededduringthe
and
providethatexpertise
process.
CDFAs
supportto clientsandattorneYs.
SteveMcBrideis a CDFAandmediator
who helpsclientson mediated,collaborative'
andlitigatedcasesm theDenver/Boulder
MetroArea.He is a partnerwithColorado
TeamMediationLLCandcanbe reachedat
or throughhiswebsite,
(720)404-1607
www.DivorceFinanceCoIorado.com
Certifieddivorce
financialanalysts
(CDFAs)are the
financialsPecialisfs
in the world
of divorce.. .