Fair is Not Always Equal: Why you should talk to a Certified Divorce Financial Analyst

Fair is Not Always Equal: Why you should talk to a Certified Divorce Financial Analyst

When a person or couple starts looking into divorce it is hard to know where to turn. It is commonplace to have a lawyer or mediator handle the legal aspects of the divorce and ensure that the division of assets are equitable and fair. While divorce lawyers and mediators are excellent at applying the law, understanding people’s rights and negotiating with other lawyers in a legal framework, they don’t specialize in the intricacies of dividing assets. In many cases finding a situation that is fair to both parties may not be as simple as dividing the assets 50/50.

This is where the Certified Divorce Financial Analyst (CDFA) comes in. A CDFA provides clarity, accuracy and equity through a collaborative divorce process. They are experts in all the financial aspects of divorce. A CDFA’s role is to help divorcing couples address the financial issues of divorce using data to help achieve equitable settlements. They are well versed in analyzing financial records and investments and identifying possible tax consequences that come along with liquidating assets.

A CDFA will work with the divorcing individual or couple to create a comprehensive financial plan. This report outlines all the assets involved in the divorce, taking into consideration the tax consequences and future value of each one. By doing some simple analysis a CDFA will make it clear that what may seem like an equal division of assets may not actually be fair due to the long-term outcomes of each. For example, a family home may only ever be worth $300,000 while a pension will one day be worth $1 million. If a client is particularly set on keeping the house or the pension a CDFA will be able to equalize the two so they can be traded in a fair and equitable way.

When deciding which assets to keep in a divorce it is important to look at how this will affect your financial situation long term.

A CDFA can also look after long term financial planning and give their clients a look at how their life will be affected based on different settlement scenarios. For example, in some cases it may not be financially viable for someone to keep a family cottage as it may be difficult to keep up on a single income. When deciding which assets to keep in a divorce it is important to look at how this will affect your financial situation long term. A CDFA will do that and create a comprehensive financial plan so you can ensure your financial stability going forward.

There is no way around it, divorce is stressful. Many people come into their initial meeting with a CDFA scared and unsure about what the future holds. Using a CDFA will mitigate stress and allow you to go into meetings with your lawyer stronger and more confident about the settlement you want and what the future looks like.

About Daren Givoque

Daren is a Financial Security Advisor and Certified Divorce Financial Analyst with O’Farrell Financial Services Inc. based out of Kemptville, Ontario. With 10 years experience in personal finance his mission is to help families build a strong foundation for a secure financial future. As a CDFA he is committed to helping his clients navigate the financial issues surrounding divorce. A husband and father of two, Daren is a dedicated family man with a strong connection to his community through his volunteer-work and philanthropy.