Answers to Common Divorce Financial Questions

A Certified Divorce Financial Analyst® (CDFA®) helps you understand the financial issues and decisions involved in divorce. At Smart Divorce Decisions, that may include analyzing income and expenses, assets and liabilities, retirement accounts and pensions, support scenarios and settlement options. The goal is to help you understand what the numbers mean—and how different decisions may affect you financially—before you agree to a settlement.

You do not have to wait until settlement negotiations begin to work with a CDFA®. In fact, getting financial information organized and identifying important questions early can help you prepare for conversations with your attorney and understand the decisions ahead. A CDFA® can also provide analysis during negotiations or mediation, evaluate proposed settlement options, or help with a specific financial question at any point in the divorce process.

Start by understanding your current financial picture. Gather information about income, expenses, bank and investment accounts, retirement plans, real estate, debts, insurance and other assets or liabilities. You do not have to understand everything before asking for help. A CDFA® can help you identify what information is important, organize what you have and recognize financial questions that may need to be addressed as your divorce moves forward.

How marital assets are divided depends on the laws that apply to your case and the facts surrounding the assets, so your attorney should advise you about your legal rights. From a financial perspective, however, assets with the same dollar value are not necessarily financially equivalent. Liquidity, income potential, cost basis, debt and retirement considerations can all matter. A CDFA® can analyze different division scenarios so you can better understand the financial implications before making settlement decisions.

Retirement assets can be an important—and sometimes complicated—part of a divorce settlement. Different types of retirement accounts and pensions have different rules and methods for division. Some may require a Qualified Domestic Relations Order (QDRO) or other specific steps to complete the division. A CDFA® can help you understand the financial characteristics of these assets and evaluate how different retirement-asset divisions may affect your overall settlement.

Support involves both legal and financial considerations. Depending on the circumstances, the financial analysis may include each spouse's income, expenses, cash flow and other relevant financial information. A CDFA® can help organize and analyze that information and model how different support scenarios may affect your cash flow. Your attorney should advise you about how support laws and guidelines apply to your specific case.

Yes. Smart Divorce Decisions is based in Charlotte, North Carolina, and works virtually with clients across the country. Because divorce laws vary by state, your attorney provides legal advice specific to your jurisdiction while Smart Divorce Decisions focuses on the financial analysis and advocacy involved in your case.