Certified Divorce Financial Analyst™

Several dynamics are involved in divorce: emotional, legal, and financial. In most cases a married couple or registered domestic partners going through a divorce are unaware of the financial ramifications of their contemplated settlement agreement. The divorcing parties need the financial professional as much as they need their attorneys and mental health specialists. Issues such as budgeting, property division, tax liabilities, family support, child support, real estate values, refinancing of home loans, business and pension valuations, and debt are all interdependent elements of the divorcing family's financial future. The fact that two households now have to live on potentially the same income level that previously supported one household underscores the importance of financial planning. A Certified Divorce Financial Analyst is specially trained to recognize potential tax problems, analyze all relevant financial information, and evaluate settlement proposals.

My emphasis is to be a part of your divorce process from the beginning. The more information you have at the beginning of your divorce related to your finances, the less time and money you will spend worrying and considering possibilities that later are determined not to be in your or your family's best interests. Worse yet, you may not find that out until after the divorce is final and it is too late to repair the damage. Many clients who have come to me in the middle or at the end of the negotiating phase have said they wished they had come to me sooner rather than later. So much time and money had been wasted.

Financial knowledge is power. I am here to support you, to help you preserve your family's wealth, and to minimize your stress and anxiety caused by lack of understanding of the finances and the divorce process itself.

The Role of a Certified Divorce Financial Analyst

As a Certified Divorce Financial Analyst, I have three possible roles - as a consultant to an individual, as a neutral financial professional for the divorcing couple or registered domestic partners who are in mediation, or as a neutral financial professional for the divorcing couple or registered domestic partners who have agreed to the collaborative law model.

I act as a consulting financial analyst to the individual who is either in litigation, mediation, or collaboration and is looking for independent help in any of the following areas: budgeting, determining and prioritizing the family's financial needs, providing a blueprint for the legal financial disclosures, analyzing the short and long term consequences of possible settlement options by using projections over 10 - 30 years, identifying the tax consequences of these same scenarios, reviewing the final settlement agreement before it is signed to ensure there are no remaining financial concerns, and educating the individual so that he/she can make fully informed financial decisions and agreements.

For the couple in mediation my role is as a neutral financial professional. I provide all of the same services listed above but in a neutral fashion for both parties. I explain the tax ramifications associated with various settlements under consideration and look for the options which provide the least tax burden to both parties. In addition, I can prepare projections for the couple which will show each of them what their financial position will be over time.

In the collaborative law setting my role for the couple in collaboration is also as a neutral financial analyst with the added element of being a member of the collaborative team which includes attorneys and coaches to help the parties reach the best possible settlement agreement which addresses each individual's needs, interests, and goals. I educate the couple so that they can make fully informed financial decisions on a level playing field.

Why hire a Certified Divorce Financial Analyst?

1) A financial analysis conducted early in the divorce process will save you time and reduce your anxiety, because much of the early part of the divorce process is spent trying to get a clear understanding of the finances.

2) You will save money when you obtain an easily understood financial report which includes the tax consequences of your financial options; this will allow your attorney/attorneys to focus on the legal issues while not needing to spend additional time sending settlement documents back and forth because you do not have the knowledge of what these documents mean to you.

3) A complete understanding of the long-term forecast of the effects of the proposed support amounts you will receive or pay, your new budget, and your share of the division of property will help you avoid the financial pitfalls related to divorce agreements and reduce your fear and uncertainty about the future.

4) Your realistic household budget, which we will prepare together, will include all living expenses such as life insurance, health insurance, and cost of living increases, etc.

5) Your thorough understanding of your family's financial picture will help you to have realistic expectations and not regret the financial decisions made during the divorce process.

6) You can provide your attorney with a complete financial report including a detailed written portion explaining all relevant financial facts; this will give him/her confidence that all assets and debts and income and expenses have been disclosed and will give them all the information they need to give you quality legal advice related to your particular situation.

DISCLAIMER: The information you obtain at this website is not, nor is it intended to be, financial or legal advice. You should consult with a financial or legal expert for individual advice regarding your own situation.

To contact Douglas I. Donald, click here dougdon@donaldandco.com

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Author information: pauls@donaldandco.com
Revised: October 2, 2006.