A divorce financial advisor is a financial advisor that focuses on helping clients navigate the unique and complex financial issues of a divorce. How does a divorce financial planner differ from a traditional financial planner? The gold standard in financial planning is the Certified Financial Planner designation. Anyone with this designation has gone through several courses on tax, estate planning, insurance, and investments as well as having passed a comprehensive exam. A CFP has a broad range of knowledge on the various issues of financial planning, but they don’t have specialized knowledge on the issues of divorce.
This is where the Certified Divorce Financial Analyst designation comes in. As explained by Michael Kitces, the Certified Divorce Financial Analyst designation is offered by the Institute for Divorce Financial Analysts. The CDFA is designed for financial advisors who specifically want to specialize in working with divorcees and the issues that arise in the process of divorce. Education focuses on areas specifically relevant to the divorce process and how advisors can fit into it, from supporting on divorce litigation, to serving as a financial expert in a contentious divorce (either behind the scenes or as an expert witness), or helping to collect data and prepare a budget to determine support needs.
If you are thinking about getting a divorce or in the middle of a divorce, a divorce financial advisor— specifically a Certified Divorce Financial Analyst — can work with your family law attorney and help you work through the myriad issues specific to reaching a fair settlement.