Everyone in Texas has heard horror stories about divorces. Sometimes, the process just doesn’t seem to end up in a fair result. In some marriages, one party has almost all of the power. They have more clout and more money for an aggressive lawyer. In effect, they have more control over the settlement that the lower-earning partner will get. This can result in an unfair division of assets.
Why certified divorce financial analysts matter
A CDFA is a financial planner with an additional certification. Certified divorce financial analysts have specialized training in handling divorces. They need to take an exam to achieve CDFA status. They analyze their clients’ spending and earnings. They help divorce lawyers advocate for equitable settlements. And when the settlement amount has been determined, they help their clients create a budget for it.
For a spouse who is facing divorce proceedings and doesn’t understand much about finance, a CDFA can be a lifesaver. CDFAs help their clients understand how to plan for retirement and how to plan for their children’s education. A certified divorce financial analyst can be crucial for older people who are getting divorced. The division of retirement accounts for people over 50 will impact their quality of life for years to come. It needs to be truly equitable.
However, it’s a good idea to ask questions before contracting with a specific CDFA. A fiduciary is a professional who acts in the best interests of their clients, not their own. Not every financial advisor is, though, and that includes certified divorce financial analysts. Most clients, however, want a CDFA who will put their goals ahead of things like commission structures for investments.