.png?width=1080&height=1080&name=LinkedIn%20with%20Light%20Blue%20Background%20(1).png)
.png?width=1080&height=1080&name=Facebook%20with%20Light%20Blue%20Background%20(1).png)
.png?width=1080&height=1080&name=Instagram%20(1).png)
How Do You Split Up Debt in a Divorce?
Dividing debt in a divorce can be complex. EP Wealth’s Linda Ginder, CFP®, EA, CDFA®, shares insights on handling mortgages, loans, and credit...
A CDFA® is a financial planner who specializes in divorce-related financial matters. Learn more from EP Wealth CDFA® Linda Ginder. Connect online to locate an advisor near you.
What Is a CDFA®?
As a Certified Divorce Financial Analyst® (CDFA®), I provide pre-divorce financial consultation to understand the couple’s financial position and where they are in the divorce process. My experience as an EP Wealth Financial Planning Manager puts me in a position to be a part of my clients’ divorce “team” and educate and guide them on the financial impact of the choices they make leading up to divorce.
My goal as a financial planner is to provide couples with the knowledge to help make practical decisions now, towards a solid financial future after divorce.
CFDA® Training and Certification
To become a CDFA®, I had to demonstrate several years of experience in the financial industry, and pass an exam issued by the Institute for Divorce Financial Analysts (IDFA®.)
To me, preparing for the exam was invaluable to my work because I learned more about what financial proofs attorneys need to provide during divorce. That insight helps me bridge the gap between the legal and financial worlds, to best serve and support my clients during this major life transition.
CDFA® professionals are also required to complete a certain number of hours of divorce-related continuing education every two years to maintain their certification. This ongoing professional development helps me stay on top of changes in the divorce industry and expand my knowledge on how I can help clients with different levels of financial challenges.
When to Engage a CDFA®
Optimal Timing
Ideally, you’ll want to consult with a CDFA® before filing for divorce or as soon as you know divorce is likely. This early involvement could help you gather necessary financial documentation, understand your complete financial picture, and develop realistic post-divorce budgets. Early planning might also help identify potential financial issues before they become problems during negotiations.
Signs You May Need a CDFA®
Cost Considerations
While adding a CDFA® to your divorce team involves an additional expense, their expertise could possibly help you avoid costly financial mistakes and potentially save money in the long run. A CDFA® might help identify assets you didn't know existed, understand the tax implications of different settlement options, and develop strategies for achieving your long-term financial goals.
The investment in a CDFA's® expertise could be particularly valuable in several common situations. You might benefit from this guidance if you're unfamiliar with your family finances or when there's significant income disparity between spouses. A CDFA® could also provide crucial support if you need help understanding the long-term impact of different settlement options, have concerns about retirement security, or need assistance developing realistic post-divorce budgets. Their expertise in these areas could help you make more informed decisions during the divorce process and better prepare for your financial future.
What Happens During a CDFA® Consultation?
During the first meeting with a new client, I review their financial disclosures. It’s helpful to find out if the couple has previously discussed splitting assets, and what they’ve taken from those conversations.
Every couple has unique needs and goals for divorce financial planning. Aside from asset division, I also analyze and guide clients on the tax implications of certain financial decisions, retirement plans and pensions, insurance needs, and various options for dealing with the marital home.
From there, I help couples visualize what an agreement might look like, based on different formulas and scenarios. I use a software tool to create a graphic depicting the breakdown of assets and how we can get as close as possible to a 50/50 split. Seeing it visually tends to be very helpful for clients.
This tool can also project what each spouse’s finances might look like going forward, which can be helpful when aiming for your future financial stability.
CDFA® PROFESSIONALS and the Transition to Life After Divorce
Even with the benefit of detailed number crunching and software projections, I always remind clients not to toss their divorce decree in a drawer and forget about it once the divorce is final. There is likely more work to be done, and I am here to assist them if they desire.
I give each client a post-divorce checklist to help them wrap up any loose ends, like changing the beneficiaries on life insurance policies and retirement accounts.
From there, I’m happy to assist with other financial needs they may have like retirement planning, investment management, estate planning, and other services we provide as EP Wealth advisors.
Inquire online to locate an EP Wealth divorce financial planner in your area.
DISCLOSURES
- The Certified Divorce Financial Analyst® (“CDFA®”) that are employed by EP Wealth Advisors, LLC are not practicing attorney, accountant, tax professional, or legal expert. All assessments and subsequent recommendations limited and are performed exclusively under the guise of financial planning. An attorney must be retained in order to professional and accurately assess legal options and/or to provide counsel. We also recommend consulting a CPA, accountant, or tax professional.
- Hiring or working with a CDFA® does not guarantee or ensure that a client or prospective client will experience encouraging or favorable results.
- Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment, tax, or legal advice nor is it intended to supplement professional individualized advice by the appropriate professional(s).
- The decision to work with a CDFA® professional will differ amongst clients and depend on individual circumstances of each respective client. There is no guarantee or warrantee that the services offered by EP Wealth Advisors, LLC and/or a CDFA® will satisfy your divorce service needs. Services offered by other professionals may align more to your specific needs.
- EP Wealth Advisors, LLC. is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability.
