The Certified Divorce Financial Analyst and the Redhead

It’s no secret that divorces settled in court cost big money. Usually, more money than they need to. Now, more than ever, separating couples are using alternative dispute resolution methods. Most want to stay away from litigation and Family Court. The most popular options are mediation and collaborative team practice. These specialists can help divorcing couples reach a fair and amicable divorce settlement together. It’s a way to avoid all the back and forth.

Knowing this, it’s only natural the use of a Certified Divorce Financial Analyst [CDFA] is becoming popular. Figuring out the financial details makes up a huge part of the divorce process. It’s a good idea to work with someone who can iron out those details in an equitable way, without having to take the matter to a judge.

No matter how you look at it, divorce is expensive. However, the way you approach it determines just how expensive.

Perhaps you’ve done well financially. You’ve have accumulated significant investments, such as real estate properties, pension, business interests, annuities, restricted stock units, or stock options. Unfortunately, these fixed assets can’t pay your living expense each month. That said, there may be ways to activate fixed holdings without cashing them out.

Working with a Divorce Financial Specialist can help decrease costs, preserve family wealth, and ultimately help you profit from your divorce.

Who handles the finances in your home?

In approximately 70% of households, one partner handles the family finances. Usually, the other partner has limited involvement. When a couple prepares for divorce, the uninvolved partner may be at a disadvantage. It can also jeopardize the possibility of avoiding litigation. A Divorce Financial Specialist can balance the field of play. This helps better position the parties for post-separation life.

When there are children involved, the divorce process becomes more complex. This is especially true if your child has special needs.

Smart estate planning is an absolute necessity for parents with special needs children. Separation and divorce amplify the need for financial planning beyond. Family trusts are often created to protect the child without affecting government aid.

Life insurance, health insurance, disability, long-term care… when any of these are on the line you need to make sure they’re handled correctly.

In many provinces, the support payer must carry life insurance. This is to ensure their support obligations are met, should an untimely death occur. Disability insurance is also often recommended. However, there could be affordability concerns. Additionally, sometimes the support payer is uninsurable and cannot obtain coverage. A Divorce Financial Specialist can help determine other means of protecting the support receiver

Establishing the amount of support payments can be hard. This is especially true in cases of indefinite support. Often, spousal support can lead to feelings of anger and grief, particularly when they’re deemed unfair. However, these feelings may be greatly reduced when the settlement is determined on fair, neutral ground.

For example, monthly spousal support payments are tax deductible for the support payer and ruled as income by the support receiver. However, lump-sum spousal support does not attract tax treatment. A Divorce Financial Specialist can help you understand all the options.

What about when employment income and support can’t maintain a client’s post-separation lifestyle? Assets received in the equitable divorce financial distribution can generate income. A Divorce Financial Specialist can advise clients on investment options.