A Certified Divorce Financial Analyst® (CDFA®) is a financial professional trained to evaluate the short- and long-term financial effects of divorce settlement options. Hiring one may be worthwhile when property, retirement accounts, support, taxes, or business interests make a settlement difficult to compare. A CDFA works alongside your attorney and other advisors; the credential does not replace legal advice.
For women who have had less involvement in household finances, divorce can make it especially important to understand assets, debts, and future cash flow before agreeing to a settlement. The same need can arise for anyone, regardless of gender. A CDFA can help clarify the financial trade-offs at a pace that supports informed decisions.
This article will explore what a CDFA is, the role they can play in divorce proceedings, and how to determine if you need one.
Not sure if you need a CDFA? Contact the team at ARQ Wealth to discuss whether it’s right for you. Or call us at (480) 214-9572 to schedule a free consultation.
What is a Certified Divorce Financial Analyst?
A Certified Divorce Financial Analyst is a financial professional who helps people navigate the financial aspects of a divorce. While a divorce attorney handles the legal aspects of ending a marriage, a CDFA focuses on the short- and long-term outcomes to help ensure the divorce settlement is fair and sustainable.
CDFAs play an important role for high-net-worth individuals navigating a divorce, as they often have a substantially larger estate than non-HNWIs, with more assets to divide. A CDFA can compare the after-tax value, liquidity, costs, and long-term effects of different assets, while your attorney advises on legal entitlement and negotiating positions.
CDFA Credentials
Becoming a Certified Divorce Financial Analyst requires several credentials:
- A bachelor’s degree plus three years of relevant professional experience
- Alternatively, five years of relevant professional experience without a bachelor’s degree
- Becoming certified by the Institute for Divorce Financial Analysts by taking extensive training and passing an exam.
- Completing IDFA’s continuing education requirements every two years to maintain the designation
ARQ Wealth’s Carly Denial has obtained all of these credentials.
Meet Carly Denial, ARQ Wealth’s Certified CDFA
Carly Denial is a certified CDFA at ARQ Wealth who takes immense pride in helping clients navigate one of the most challenging periods of their lives. Carly is a fee-only fiduciary advisor, meaning she is compensated by clients for advice and guidance rather than earning commissions from selling financial products. This helps provide transparency for clients and can help reduce potential conflicts of interest.
Additionally, as a fiduciary advisor, Carly is legally bound to act in her clients’ best interests and always takes the time to understand their goals, risk tolerance, and aspirations, even during difficult periods such as a divorce. Carly has years of relevant experience and is more than open to working as one cog within a larger divorce team.
How a CDFA Helps During Divorce Proceedings
By the end of a marriage, high-net-worth individuals have accumulated significant assets that must be accounted for and fairly divided. For women who may not have been the primary earner, this is an important time to gain a full understanding of the household’s assets before they’re divided. A CDFA can help ensure that no assets are left undiscussed.
Common assets to identify and review with your financial and legal team include:
- Bank accounts and cash: Checking, savings, money market accounts, and CDs
- Investment portfolios: Stocks, bonds, mutual funds, ETFs, and brokerage accounts
- Retirement assets: 401(k)s, IRAs, pensions, or other retirement plans
- Real estate: Marital home, vacation homes, or rental properties, commercial real estate, land, and international properties
- Businesses and professional practices: Privately held companies, partnerships, LLC interests, family businesses, or retirement accounts held through small businesses.
- Private investments: Private equity, venture capital, hedge funds, and other alternative investments
- Trust assets: Revocable, irrevocable trusts, or similar vehicles
- Inherited assets: Especially important if inherited property has been commingled with marital assets
- Life insurance policies
- Luxury vehicles: Cars, boats, and recreational vehicles
- Art, jewelry, and collectibles: Fine art, watches, wine collections, antiques, and other valuable personal property
It’s important to ensure these assets aren’t just divvied up according to what feels fair in the moment. They should be divided in a way that will remain fair five, ten, or twenty years down the road.
A Certified Divorce Financial Analyst also offers guidance during this turbulent time. Divorce marks the start of a new chapter in your life, meaning you’ll have to adjust your financial habits to account for your new situation. This means answering questions like:
- How much will your new lifestyle cost?
- Which assets will support your lifestyle?
- How much cash will you have available?
- How might the decisions you make today affect your retirement or the legacy you hope to leave your children?
- What goals are ahead of you during your post-divorce life?
A CDFA may be most useful when settlement options have different tax consequences, retirement assets or business interests are substantial, or future support and cash flow are uncertain. Ask your attorney and financial advisor whether specialized help would add value. Certified Divorce Financial Analyst fees vary by professional and scope; request a written estimate, the billing method, and an explanation of what is included before hiring one.
Keeping the Bigger Picture in Mind
A CDFA understands your financial goals and keeps them top of mind during negotiations. They can also help you understand which assets might be more trouble than they’re worth, so you can avoid taking control of them. For example:
- Taking ownership of the family home could leave you responsible for paying years of taxes, repairs, maintenance, and the remaining mortgage balance.
- Splitting investment accounts by their current value could leave you with less money than expected if the assets you receive carry larger unrealized gains and a higher tax bill when sold.
- Agreeing to receive a settlement in installments could put your financial plans at risk if your former spouse misses payments or becomes unable to pay.
ARQ Wealth Can Help You Navigate Your Divorce With Peace of Mind
Divorce marks the end of a major chapter in your life, and the decisions you make during this period will shape your finances for decades. While a quick settlement may provide relief today, it can potentially cost you in taxes, upkeep, and lost income later.
A Certified Divorce Financial Analyst (CDFA) helps you see the full picture before you sign. At ARQ Wealth, Carly Denial brings CDFA training to every case, working with your legal team to review disclosed assets, compare settlement options, and plan for life after divorce. She also helps you decide which assets to keep, which to fight for, and which to let go.
ARQ Wealth is a fee-only fiduciary firm in Scottsdale, Arizona. We do not earn commissions on financial products and, as fiduciaries, we are legally bound to act in your best interest. Our goal is a settlement that stays fair five, ten, and twenty years from now.
You do not have to face this alone, and you do not have to rush.
Contact the team at ARQ Wealth to discuss whether it’s right for you. Or call us at (480) 214-9572 to schedule a free consultation.