Divorce Financial Planning Services

    WHAT IS A CERTIFIED DIVORCE FINANCIAL ANALYST (CDFA®)?

    How a CDFA® Can Help You During a Divorce

    A Certified Divorce Financial Analyst (CDFA®) is a professional who is specially trained to help you make financial decisions related to your divorce. Think of them as divorce financial consultants. A CDFA® can provide cash flow analysis to evaluate asset division, tax assessment and tax planning services for settlements, and determination of community and separate property.

    Qualifications for the CDFA® designation include three years of financial planning or legal experience, a bachelor’s degree and successful completion of coursework, and a comprehensive examination administered by the Institute for Divorce Financial Analysts (IDFA™).

    A CDFA® helps you and your attorney understand how the decisions you make as part of your divorce agreement will affect your financial future. Additionally, once your divorce contract is finalized and your attorney's work is over, a CDFA® continues to provide support by helping you manage the money and other assets you receive.

    No matter what stage of the divorce process you’re at, EP Wealth Advisors can provide you with a customized financial roadmap, including a comprehensive financial health assessment.

    WHY IS FINANCIAL PLANNING DURING
    A DIVORCE IMPORTANT?

    How an EP Wealth Advisor Provides Financial Guidance During Divorce

    Divorce involves a series of financial decisions that can affect your life for years, from how assets and debts are divided to how your tax situation, insurance coverage, and retirement outlook may change. Some of these decisions need to be made quickly, and some have long-term consequences that aren't always obvious in the moment.

    For example, keeping the family home may seem like a priority, but the ongoing costs of taxes, maintenance, and insurance may not fit within a post-divorce budget. A retirement account split may look equal on paper but carry different tax implications for each spouse. And decisions about alimony or child support may have direct implications for your long-term cash flow.

    A CDFA® at EP Wealth can help you evaluate these decisions in context, looking at how each one may affect your financial life not only today but in the years ahead. Whether you're working with an attorney, a mediator, or going through a collaborative process, having a financial professional involved early can help you approach negotiations with a clearer picture of what each option means for you.

    FREE DIVORCE CHECKLIST

    Our Free Divorce Checklist Breaks the Process Down Into a Simplified Step-by-Step Guide.

    DOWNLOAD OUR FREE DIVORCE PROCESS CHECKLIST

    THE DIVORCE FINANCIAL PLANNING PROCESS

    Learn How the Divorce Planning Process Works
    and How a Financial Advisor Can Help

    Whether or not you initiate the divorce, it’s wise to involve a financial planner right away. Waiting until the divorce settlement is finalized can cost you. Having a professional review the financial consequences of your divorce early in the process can help you make more informed decisions. 

    1

    Gathering financial information for disclosures

    We help you sort through all of the pieces of your financial life, even if you weren’t the spouse who handled the money matters. You will learn along the way as we educate you about your finances and evaluate what you have and ultimately what you want from a settlement.

    We work with you and your attorney or mediator to complete financial disclosures, review tax returns and other financial documents and review the financial information provided by your spouse.

    2

    Settlement negotiations - with a CDFA® on your side

    As the process unfolds, we work with you and the other professionals on your team. Even in a community property state, there are many creative ways to divide assets and liabilities so that you end up with the “half” that will provide you with the best financial future.

    If you are presented with a proposal from your spouse, we provide a detailed, comprehensive financial plan to show what that proposal means to you from an asset and cash flow point of view, both now and in the future. This allows you to make the best, and most informed, decisions during any negotiation.

    3

    After the settlement agreement - Creating a solid plan of action for your future

    Our divorce planning process continues after a divorce becomes final. We help you move forward with next steps such as:

    • Creating a new budget and implementing an appropriate financial plan and investment strategy
    • Making sure QDROS (if appropriate) are completed. and assets are transferred
    • Meeting with a CPA to discuss tax planning
    • Meeting with an estate planning attorney to create a new will or trust
    • Closing joint accounts and retitling assets
    • Protecting or establishing a strong credit history
    • Reevaluating insurance needs
    • Helping you track expected future streams of income
    • Setting goals and focusing on making plans for your future

    WHAT DOCUMENTS DO YOU NEED?

    Download Our Free List of Documents Your CDFA® Will Need for a Complete Divorce Financial Analysis.

    Download Our List Of Documents Needed For Divorce Financial Analysis

     What Does a Fair Division of Assets Look Like?

     How a CDFA® Can Help You Assess a Divorce Settlement

    A 50/50 split may sound straightforward, and in some states it's required by law. But because different assets carry different tax implications, liquidity constraints, and long-term value, the way a settlement is structured can matter as much as the overall percentage.

    What might sound like a fair proposal on the surface might raise red flags with your CDFA®. Determining a fair split of employee compensation packages, privately-held businesses, professional practices, and other marital assets requires expertise that a professional financial advisor can provide.

    Take the basic matter of health insurance, for example. If you formerly received coverage through your spouse’s healthcare plan, you must now find an alternative. Your EP Wealth advisor can help coordinate with a healthcare specialist to find an insurance plan that fits your needs. 

    Perhaps you would like to stay in the family home. Maybe your spouse is willing to give it to you. It’s not a win for you if you cannot afford the property taxes and upkeep. A CDFA® takes a clear-eyed, objective view of the marital assets with the purpose of helping you in the long run, not just in the immediate aftermath of a divorce.

    Tax Planning During Divorce

    How a CDFA® Helps You Evaluate the Tax Consequences of Your Settlement

    Divorce changes your tax picture, and the decisions you make during settlement negotiations can affect your tax situation for years. EP Wealth's CDFA® professionals help clients assess the tax consequences of proposed terms and develop strategies that account for both immediate and long-term tax impact.

    For example, we can analyze how different asset division proposals compare on an after-tax basis, identify potential capital gains exposure in transferred assets, and review how changes to your filing status may affect your tax bracket and deductions. For settlements that involve dividing employer-sponsored retirement plans, we help coordinate the Qualified Domestic Relations Order (QDRO) process to avoid early withdrawal penalties and unexpected tax liability.

    We also work with tax planning professionals to help you develop a forward-looking tax strategy as you transition into post-divorce financial life.

    IS A CDFA®A SUBSTITUTE FOR A DIVORCE LAWYER?

    The Role of the CDFA® in the Divorce Process

    A CDFA® is not a substitute for a divorce attorney. They cannot provide legal advice unless they are also licensed to practice law. However, a divorce financial advisor works in conjunction with your lawyer and other professionals on your team, such as a mortgage specialist or forensic accountant. Working with them, we will create a detailed snapshot of your and your spouse’s current financial situations and create a clear plan for how you will achieve post-divorce financial security, not only right now but in 5, 10, 20 years and beyond.

    Financial Technology and Modern Divorce

    Divorce settlements have become more complex with the rise of digital assets and online income sources. Traditional financial disclosures often don’t account for cryptocurrency holdings, digital businesses, or intellectual property, all of which can be difficult to value and divide fairly.

    Some key considerations include:

    • Cryptocurrency & Digital Assets – Crypto, NFTs, and other digital investments may require specialized valuation and forensic tracking for proper division.
    • Online Businesses & E-Commerce – Digital entrepreneurs may have revenue streams from ad revenue, online courses, or digital marketplaces, all of which must be assessed properly.
    • Stock Options & Restricted Stock Units (RSUs) – Tech industry professionals often receive compensation in the form of stock options or RSUs, which require careful evaluation in divorce settlements.

    Understanding how these evolving financial assets fit into a divorce settlement is essential. A CDFA® can help identify, track, and assess these assets so they are fairly accounted for.

    Managing Complex Assets in Divorce

    For high-net-worth individuals, dividing assets goes beyond bank accounts and retirement funds. Divorce settlements involving executive compensation, business ownership, and private investments require specialized financial planning.

    Common complex assets include:

    • Executive Compensation Packages – Bonuses, deferred compensation, stock options, and RSUs can significantly impact asset division and require strategic planning.
    • Business Ownership & Valuation – If one or both spouses own a private business, determining its true value and structuring an equitable division is critical.
    • Private Investments – Investments in hedge funds, venture capital, and private equity funds often come with liquidity restrictions and require special considerations.
    • Real Estate Holdings & Vacation Properties – Primary residences, vacation homes, rental properties, and international real estate require careful valuation and tax planning.
    • Intellectual Property & Royalties – Patents, trademarks, copyrights, and royalties from books, music, or other intellectual property may generate ongoing income that must be divided.
    • Collectibles & High-Value Assets – Fine art, classic cars, jewelry, and other valuable collectibles often require independent appraisal to determine their worth.

    A CDFA® works alongside valuation experts and attorneys to analyze, divide, and protect these assets while keeping tax implications in mind.

    Child Support and College Planning Considerations

    Divorce can complicate long-term financial planning, especially when it comes to child support and college expenses. While child support typically covers basic needs, college tuition and related costs are not always included in divorce agreements.

    Key considerations can include:

    • State Laws on College Expenses – Some states require parents to contribute, while others do not.
    • 529 College Savings Plans – Clarify ownership and future contributions in the settlement.
    • Financial Aid Impact – Parental income and assets post-divorce may affect eligibility.

    In an attempt to minimize future disputes, parents should address college funding during the divorce process. A CDFA® at EP Wealth can help structure a financial plan that balances education savings, child support, and long-term financial goals.

    Gray Divorce: Considerations for Separating Later in Life

    Divorce among individuals in their 50s, 60s, and beyond—commonly called gray divorce—comes with unique financial challenges. After decades of shared assets and retirement planning, a later-life divorce requires careful adjustments to retirement income, healthcare planning, and long-term financial security.

    Key concerns may include:

    • Retirement Account Division – Dividing 401(k)s, IRAs, and pensions fairly while minimizing tax penalties.
    • Social Security Benefits – Understanding how divorce affects spousal and survivor benefits.
    • Healthcare & Long-Term Care Planning – Medicare eligibility, long-term care insurance, and out-of-pocket healthcare expenses.
    • Estate Planning Updates – Adjusting wills, trusts, and beneficiaries to reflect new financial realities.

    Decisions made during a divorce settlement can significantly impact your financial stability in retirement. Working with a financial professional can help you to structure a settlement that supports your long-term goals. EP Wealth’s retirement planning advisors guide clients in adjusting investment strategies intended to create a sustainable financial plan after divorce.

    Collaborative Divorce

    Collaborative divorce is a non-adversarial approach to ending a marriage. Instead of each spouse working separately through their own attorney, the collaborative process brings both spouses, their attorneys, and other trained professionals to the same table to work toward a settlement through open communication and shared problem-solving. Both parties retain control over the outcome rather than leaving final decisions to a judge.

    A CDFA® plays an important role in this process. As a financial neutral, a CDFA® can:

    • Analyze asset division proposals and model how different settlement structures may affect each spouse's financial picture over time
    • Provide cash flow projections so both parties can see how a proposed agreement holds up in the years ahead
    • Help the non-moneyed spouse understand assets, income sources, and ongoing expenses
    • Present financial data in a clear, impartial way that helps move discussions toward resolution

    At EP Wealth, our CDFA® professionals are trained in collaborative methods and work alongside attorneys, family specialists, and other members of your professional team.

    Risk Management for You: Credit Protection, Long-Term Planning, and More

    Divorce doesn’t just affect assets—it can also create financial vulnerabilities. Without proper safeguards, individuals may face credit score declines, unexpected liabilities, or gaps in insurance coverage.

    Risk management strategies include:

    • Credit Score Protection – Closing joint accounts, monitoring credit reports, and establishing independent credit lines.
    • Long-Term Care Planning – Evaluating insurance options and setting aside funds for future healthcare needs.
    • Asset Protection – Adjusting financial plans to safeguard against unexpected expenses or financial hardship post-divorce.

    A CDFA® can provide insights on how to put protective financial strategies in place, helping clients move forward with financial confidence.

    For more information about EP Wealth’s divorce financial planning, contact us here.

    CONTACT AN EP WEALTH ADVISOR

    If you are going through a divorce, having a financial professional on your side can make a real difference. Schedule a consultation with an EP Wealth CDFA® to discuss your situation. We can start with a financial portfolio review and help you understand your options as you move through the process.

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