Divorce is among the greatest financial transaction that two people in Arkansas can go through. Its outcome could have a significant impact on both parties and their families, which is why some people consider hiring a Certified Divorce Financial Analyst (CDFA).
Understanding a CDFA
A CDFA is a professional trained to assist people during their divorce process. They help their clients make decisions about asset and debt distribution that follow the equitable distribution model in Arkansas.
CDFAs have extensive knowledge of the financial aspects of marriage and divorce. In fact, most of them are financial professionals who have switched careers to focus mainly on assisting separating couples make the right decisions regarding their assets and debts. To practice, they must have a bachelor’s degree, a minimum of three years of professional experience in finance or divorce and a license from the Institute for Divorce Financial Analysts.
Some of the roles that a CDFA can play during the divorce process include:
- Uncovering hidden assets
- Determining the value of assets
- Analyzing short- and long-term cash-flow needs
- Developing a spending plan
- Providing guidance on dividing retirement accounts
CDFAs can also provide other financial services, such as:
- Helping clients file for taxes
- Assisting with the sale of a family home
- Negotiating child support and spousal maintenance payments
- Recommending a financial planner for post-divorce life
Hiring a CDFA
If you are considering hiring a CDFA, it is important to understand what they can and cannot do. For example, a CDFA cannot give legal advice or represent either party in court. However, they can help you understand the financial aspects of your divorce so that you can make informed decisions.
When meeting with a potential CDFA, it’s recommended that you ask about their experience, qualifications and fees. You want to ensure that you are hiring someone qualified to help you and someone whom you can afford.
Arkansas family courts do not force couples to hire CDFAs. This will be a decision you’ll need to make depending on your marriage and financial standing or goals. Regardless of what route you decide to take, it is important that what you settle on is fair and equitable. You can achieve this either by negotiating an agreement with your spouse or going to court and having a judge decide for you.