What Is a Certified Divorce Financial Analyst?

Certified Divorce Financial Analysts Explained in Less Than Four Minutes

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A certified divorce financial analyst is a trained financial professional who can help you navigate the financial aspects of divorce.

Learn more about what a certified divorce financial analyst does, what services they provide, how much they charge, and what you should know before hiring one.

Definition and Example of a Certified Divorce Financial Analyst (CDFA)

A certified divorce financial analyst (CDFA) is a trained financial professional who can help you navigate the financial aspects of divorce. They often work with your divorce lawyer and usually come from a background such as:

  • Financial planning
  • Accounting
  • Divorce law

A CDFA must go through training and certification in order to provide their expertise in the financial implications of divorce. Their areas of expertise include anything that may affect your long-term financial picture, such as:

  • Alimony or child support
  • Dividing personal vs. marital property
  • Determining the future value of retirement and pension funds
  • Calculating any divorce payments
  • Divorce tax law

How a CDFA Works

Divorce is expensive, and a certified divorce financial analyst can help you get the fairest deal you can. They can help you determine the cost of living as it relates to inflation. That ensures that your assets will be divided fairly and that you won't be shortchanging yourself when negotiating a divorce settlement.

A CDFA helps you split assets, focusing on both the short- and long-term financial value of your assets and how they can affect you later in life.

They use specialized software programs to help them analyze assets like:

Certified divorce financial analysts can also help divorcing spouses formulate realistic post-divorce monthly budgets. They often work with clients to determine how to afford the lifestyle they want to lead post-divorce or how divorce will affect taxes going forward.

A certified divorce financial analyst helps the divorcing couple come up with the fairest and most equitable division of assets that takes into account the long-term picture rather than just how things look at that moment.

Note

A 50-50 split isn't always the most equitable, particularly where details like retirement and child support are involved.

How Do I Find a CDFA?

A CFDA charges an hourly rate, similar to that of a lawyer. These rates can vary based on your location and the value of your assets. Hourly rates may range from $150 to $450, though some may charge more, especially if the divorce and assets are complicated.

You can find a reputable certified divorce financial analyst via the Institute for Divorce Financial Analysts, the first issuing organization for CDFAs.

Note

A CDFA is not a substitute for a good divorce lawyer. In many cases, you will need to hire a lawyer or mediator before you hire anyone else.

Before you hire a certified divorce financial analyst or any other financial professional to assist with your divorce, you should check their qualifications along with several other factors:

  • Certification: Make sure they are a member of the Institute for Divorce Financial Analysts or another reputable organization.
  • Trust: Going through a divorce is a tricky, emotional experience. Only hire professionals you can trust and be open with.
  • Recommendations: Chances are, you have a friend or relative who has also gone through a divorce. Ask whether they used a CDFA they would recommend.
  • Interview: Don’t be afraid to ask questions of a potential CDFA, such as how long they’ve been practicing, processes for their work, their average client profile, and even why they decided to become a CDFA. Their answers will tell you whether they’d be a good fit to work with you.

Do I Need to Work With a CDFA?

You might not always need to hire a certified divorce financial analyst. If you already work with a financial advisor, they may be able to give you a good idea of your long-term financial picture and how it may be affected by a divorce. They also have likely already worked out a realistic monthly budget with you.

Note

In cases of an amicable divorce, you and your spouse may be able to finalize everything by using just a mediator and a CDFA, forgoing the need for a lawyer altogether. That can save you both money in the long run.

If you and your spouse own a business together, have significant assets, or don’t know how to form a budget post-divorce, then a CDFA is probably a good choice. However, if you don’t have significant or complicated assets like a business or several real estate properties, then you may be able to save money and do it yourself.

Key Takeaways

  • A certified divorce financial analyst (CDFA) is a trained professional who can help ensure assets are divided fairly in a divorce.
  • A CDFA is not a substitute for an attorney.
  • A CDFA can help you look at your assets with a long-term view.
  • If you already work with a trusted financial advisor, a CDFA may not be needed.
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Sources
The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
  1. Institute for Divorce Financial Analysts. "What Is A CDFA?"

  2. Institute for Divorce Financial Analysts. "Why Hire a CDFA Professional?"

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