Chartered Financial Divorce Specialist

What is a Chartered Financial Divorce Specialist (CFDS)?

A CFDS is a financial professional – often also a financial planner or an accountant – who has specialized skills and experience that enables him or her to analyze the long-term financial impact of divorce. Financial professionals who have met specific education and experience requirements have been designated CFDS professionals by the Academy of Financial Divorce Specialists.

CFDSs receive special training in divorce-related financial issues such as tax and property division. After completing the AFDS training and passing the exams, CFDSs also receive perspectives software enabling them to produce charts and graphs that will show a client the results of choosing one scenario over another. A CFDS can take the offer on the table and project out 5, 10, 20 years to show you what you’ll have to live on if you sign the agreement. If the projections show that you’re going to run out of money after 18 months, you’ll need to renegotiate your agreement. That’s why it’s so important to meet with a CFDS before you sign your agreement. If this advice comes too late for you, meeting with a CFDS could still be worthwhile: he or she can look at your financial situation and show you how to improve it by making some spending/saving changes.

How a CFDS professional can help divorcing individuals

The financial ramifications of a divorce can be devastating. But, with proper planning and expert help from professionals specializing in financially equitable divorce settlements, you can increase your chances of arriving at a settlement that fully addresses your long-term financial needs — and your spouse’s too. What’s missing in most divorce processes is financial expertise. A CFDS professional can forecast the long-term effects of the settlement. By using a CDFS professional, both partners have a clearer view of their financial futures. Only then can they approach a settlement that fully addresses the financial needs and capabilities of each.

Who do CFDSs help?

CFDS professionals help clients determine the short-term and long-term financial impact of any proposed divorce settlement. They also provide valuable information on financial issues that are related to the divorce, such as tax consequences, dividing pension plans, continued health care coverage, stock option elections and much more. CFDS professionals also help attorneys by helping the client make financial sense of proposals. CFDS professionals give lawyers the tools they need to help prove their case.

Top 5 reasons to hire a CFDS

1. Financial analysis conducted early in the divorce process can save time. The average length of the divorce process is one year. In the beginning stages of the process, both parties spend a great deal of time trying to get a clear understanding of the financial aspects and terminology of the separation. A CFDS professional can explain all financial aspects of the pending decisions and help to empower you to make educated decisions throughout the proceedings.
2. A CFDS can help you save money during the divorce process. By using a CFDS professional, you can have a clearer view of your financial future. Only then can you approach a legal settlement that fully addresses your financial needs and capabilities. A legal settlement that floats back and forth between attorneys, without you having a clear understanding of all financial ramifications, can be detrimental, time consuming and expensive. CFDS professionals can educate their clients by providing a thorough knowledge and understanding of the often-complicated financial decisions.
3. A CFDS can help you avoid long-term financial pitfalls related to divorce agreements. Working with you and your attorney, a CFDS professional can forecast the long-term effects of the divorce settlement. This includes details of all tax liabilities and benefits. Developing a long-term forecast for your financial situation is far better than a short-term snapshot. Financial decisions must be made that not only take care of immediate family needs, but retirement needs as well.
4. A CFDS can assist you to develop detailed household budgets to help avoid post-divorce financial struggles. This will help you think through what the divorce will really cost in the long run and develop a realistic monthly budget during the financial analysis process. Expenses such as life insurance, health insurance and cost of living increases must be taken into consideration when agreeing on a final financial settlement.
5. Using a CFDS professional can reduce the amount of apprehension and misunderstanding about the divorce process. Misinformation and misconceptions can be detrimental. Many people have false expectations that they will be able to secure a divorce settlement allowing them to continue with their accustomed style of living. Financial divorce analysis helps to ensure a good, stable economic future and prevent long-term regret with financial decisions made during the divorce process.