It is not always that a couple gets to end their divorce case amicably. Some divorce cases may involve bitter conflicts that make it a challenge to arrive at settlement deals. In such a crisis, you may need a Certified Divorce Financial Analyst Phoenix, AZ.
When Does a Certified Divorce Financial Analyst (CDFA) Appear?
The typical parties to a divorce case are the couple, their attorneys, and probably a judge. It is only at the stage that involves sharing assets or money that a neutral mediator comes in to help with the process. However, sometimes the financial part of divorce settlement becomes complex, and there is a need for expert advice to all the parties involved.
What’s the Role of A CDFA
We can look at the role of a CFDA in a divorce as both an analyst and an advisor. Here is what their role looks like.
The CDFA establishes the exact value of assets that are under contestation. They aim to give advice and recommend a formula that will leave all parties satisfied. Clients and their attorneys provide the relevant information to the CDFA, which the latter relies upon in their analysis.
They consider all the factors that involve dealing with money after divorce. Here are the issues.
• Child custody
• Each partner’s entitlement
• Proposals from each party
These are the divorce issues that cause the most disagreement in the division of assets.
- Advice on Post-Divorce Plan
The advice that a CDFA gives will then give a clear picture of all the possible impacts. This projection is essential for the clients’ well-being after the settlement. When parties appreciate the forecast, the CDFA may then help them make a life budget that will guide the post-divorce financial obligation.
Heeding the advice and recommendations of the CDFA will give you a healthy financial experience after divorce. The experience opens up your eyes to new economic realities that may necessitate a slight adjustment to cope.
How to Manage Finances after Divorce
After settling on a financial agreement, a few things will change. The new changes include:
• Closing any joint account that you may have had
• Reduced financial base
• Paying for expenses in the divorce case
• Cutting back on some luxury spending
Due to this reality, you may want to adjust the way you plan your finances. Several factors may help guide you through this adjustment. Here is how you can go about it.
- Formulate Relevant Life Goals
You may have had common dreams as a couple before things went south. Those dreams may not be relevant now, and it is time to formulate yours. Ensure you pursue dreams that resonate with your new financial reality.
- Have a Reasonable Budget
Before the divorce, your family budget was probably more extensive, and you could afford some luxury. The post-divorce budget needs not to follow the pre-divorce one. Have a budget that will not put unnecessary pressure on you.
- Review Beneficiaries of Your Accounts
Consider your will (if you have one already), life insurance, and retirement benefits. If you had registered your spouse as the beneficiary, you might want to remove them for obvious reasons.
Post-divorce life means you have to concentrate on your new life. Even as you involve a CDFA for financial advice, remember you are responsible for your happiness. Try to make financial decisions that will benefit you more and give less prominence to any bitter divorce experience.