| 1Q. Why do I need a Certified Divorce Financial Analyst? I thought my lawyer handled the financial issues too.
1A. Lawyers are professionals trained to advise and protect people's legal rights and they must know the law in depth in all areas of the law in which they practice in order to represent their clients adequently. It is not really fair or reasonable to expect that they will also have the depth of knowledge in taxes, pension distributions, insurance issues, or financial planning which will assure that all your concerns about how you will be able to live after the divorce are addressed appropriately.
2Q. Won't it cost more to hire a CDFA as well as an attorney?
2A. Yes, it probably will, but not as much as your might think because of two major reasons: (1) CDFAs generally charge somewhat less than attorneys in the same area do so that the amount of professional time spent analyzing your finances will cost less. Also, because of their expertise in financial analysis, CDFAs can often complete the process faster, leaving more time and money to explore financial issues usually not addressed by attorneys.
(2) Secondly, to the extent that a CDFA can show you ways to save money, you may be able to save more than you pay for the cost of the CDFA's services. For instance, it may be possible to save you money by structuring your settlement in more tax-efficient ways, or by making sure that the agreement to split any pension plans is worded to assure that you do, indeed, get what you think you're getting, or by analyzing any number of financial circumstances to find ways to structure solutions to provide you with maximum benefit.
3Q. Do you work with me alone or with me and my spouse?
3A. We work on either basis, depending upon circumstances. When divorcing spouses have an amicable relationship in which they're both willing to talk to each other, we can help them work out or mediate their financial issues, while they look to their attorneys for legal advise and the legal documentation In an adversarial situation, we work for the spouse who has hired us.
4Q. How do you charge?
4A. We charge by the hour for the time we meet, for the time we spend working on your case, and for any time spent in court. Depending on what your needs are, at the end of the first consultation, if we decide to work together, we would ask for a retainer and would charge our time against this retainer.
5Q. How do I know if I need your services?
5A. If you are uncertain about any of the following issues or about how to find answers to these issues, give us a call:
- What should we do about the house?
- What are my options for health insurance?
- Will I have enough after the divorce to pay my bills?
- Should each of us just keep our own 401k or other retirement plans?
- What does it mean to split a pension 50/50?
- Does it make sense to trade pension rights for the house?
- Will I have enough after the divorce to be able to retire some day?
- Who will pay for the kids' college?
- Does the child support payor get the child dependency exemption?
- I need cash for a new down payment. How can I get it?
- Who should pay off the debts and when should they be paid?
- How can I guarantee I'll still get child support if my ex-spouse dies?
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