Divorce Financial Analysis
Without a doubt, divorce is difficult and often complicated, no matter the size of your estate.
However, you can take steps that will make the process easier and ensure that you are making the right decisions, particularly regarding the Financial aspects of your divorce. One of the best tools at your disposal is divorce financial analysis. It will give you a clear and complete understanding of how your divorce will impact your overall financial health.
What is divorce financial analysis?
Divorce financial analysis is an organized way to view your financials. It begins with a valuation of the couple’s estate. This valuation is the basis for equitably dividing the couple’s assets and liabilities. It is also the basis for determining if, and how much, financial support is needed. The financial analysis gives a couple an understanding of the financial consequences of their divorce decisions.
Who develops the divorce financial analysis?
The work is done by a divorce financial analyst who, in general, has a degree and professional experience in accounting or finance. A Certified Divorce Financial Analyst® (CDFA®) has had specialized training to understand the unique and often complex aspects of divorce financials. One of the parties may engage a CDFA® or the couple may jointly decide to use a CDFA®.
Why use a divorce financial analyst?
The financial aspects of a divorce can be complicated and overwhelming. Using an analyst ensures that the couple understands how divorce will affect their overall financial standing. Specifically, a CDFA® can provide an understanding of the couple’s estate, ensure fairness of the valuation assessment, and help determine an equitable division of assets. The larger the estate, the more complex its valuation and division. The determination of child and marital support also depends on an accurate assessment of the estate and household income. A CDFA® can be particularly helpful if one member of the couple lacks an understanding of the family's overall finances.
