Q)  What is a certified divorce financial analyst?

A)  A CDFA is educated and qualified to forecast long term effects of a divorce settlement.  A CDFA uses graphs and reports to show different scenarios of the proposed settlement and  how this effects each person's cash flow as well as their net worth.  Then you can make an educated decision as to which scenario will work best for all parties involved in the divorce process.  This would include the divorcing couple and any children that will be affected by the decisions.

Q)  I have an attorney, so why do I also need a Certified Divorce Financial Analyst?

A)  The legal, financial, and emotional aspects of divorce make the process very stressful.  Having a  lawyer to provide legal advice and a CDFA to provide financial advice will help lessen this stress. A CDFA becomes part of your divorce team and gives support to your lawyer on the issues of long and short term effects of property divisions, tax consequences, retirement fund division, determining who can afford to keep the marital home, and more.

Q)  Who should utilize a Certified Divorce Financial Analyst?

A)  All individuals going through a divorce could benefit from financial counseling and advice.  However, if the situation is very simple, it may not warrant the level of analysis the CDFA provides.

Q)  Do certified divorce financial analysts only help women?

A)  I am trained to assist men and women.  I do not suggest any settlement.  I only show you and your attorney the financial evvects of different proposed settlements so you can chose which is best for you.

Q)  Am I entitled to my former spouses' retirement income?

A)  Generally, former spouses are not entitled to benefits under a qualified plan unless provisions in the divorce settlement under a QDRO(qualified domestic relations order) have been clearly spelled out.

Q)  What impact will my divorce settlement have on my taxes?

A)  It is important that property you receive in your settlement address any capital gains attached.  You need to determine tha amount of any potential capital gains on the property you receive.  If you each receive $100 in assets and you would have to pay tax if the asset were sold and your spouse does not, this is not an equal division of property.

Q)  If I receive alimony, do I have to pay taxes on the income?

A)  Yes, it is taxable as ordinary income to the person receiving the alimony, and deductible by the person paying the alimony.