By: Joseph Goldy, CFP®, CDFP®
I'm happy to announce I am now a Certified Divorce Financial Analyst®.
I wanted to share why I pursued this designation when many people, divorcees or otherwise, may not have heard of it.
Anyone who has gone through a divorce knows how emotionally challenging and financially complex it can be. While attorneys handle the legal aspects, a Certified Divorce Financial Analyst® focuses specifically on the financial implications of divorce. This specialized designation equips professionals with the expertise to guide clients through the intricate financial aspects of divorce proceedings, ensuring better outcomes for their financial future.
When I work with my clients who are going through a divorce, I've noticed time and again that uncertainty about someone's financial future creates an enormous amount of anxiety and fear. It's understandable. You had a game plan for life that included possibly two incomes, and now there is one. Assets and investments you were counting on to grow and be there at retirement may no longer be in your financial picture.
This is why I chose to focus on this specialty area of the financial planning world: When you can show clarity to someone who is experiencing perhaps one of the most traumatic events in their life, the anxiety and fear begin to fade away. The conversation moves from fearing the unknown to focusing on the person’s present financial situation and future possibilities.
By nature, humans are pretty good at tackling challenges if we can wrap our arms around the scope and magnitude of a problem. We adjust and, with the help of a trusted wealth advisor, begin to see the challenges and the opportunities more clearly.
Certified Divorce Financial Analysts® brings a wealth of specialized knowledge to the divorce process. We undergo extensive training to analyze different divorce settlement options' short-term and long-term impacts. A CDFA® practitioner's expertise extends to providing detailed financial analysis for property division and helping clients understand the complex implications of various scenarios.
A CDFA® can also assist in creating a realistic cash-flow forecast for post-divorce life, evaluate insurance needs, and address critical retirement planning concerns. They're also invaluable in determining practical matters, such as whether a client can afford to keep the family home and calculating the cost of child-related expenses over time.
CDFA® practitioners work alongside family law attorneys, not in place of them. While your attorney handles legal matters, your CDFA® professional focuses on the financial aspects of your divorce. They provide thorough data collection and analysis, create financial projections and scenarios, and offer expert testimony if needed. Many CDFA® practitioners also provide valuable support during mediation, helping to facilitate productive discussions about financial matters.
Unlike attorneys who primarily focus on the immediate divorce settlement, CDFA® professionals consider the long-term financial implications of decisions. They help clients understand how choices made during divorce will affect their financial well-being for years. This long-term perspective is crucial for making decisions that will stand the test of time and support your financial goals well into the future.
Divorce is more than just a legal process—it's a financial turning point that can impact the rest of your life. Working with a Certified Divorce Financial Analyst® ensures you have an expert dedicated to protecting your financial interests during this critical time. By providing detailed analysis, long-term projections, and expert guidance on complex financial matters, a CDFA® helps you make informed decisions supporting your financial well-being during and after divorce.
Whether you're considering divorce, amid proceedings, or evaluating a settlement offer, partnering with a CDFA® professional can provide the financial clarity and confidence you need to move toward a secure financial future. While working with divorcees is a small but growing part of my overall business, I’m happy to be able to help people during this challenging time in their lives.
Joseph Goldy, CFP®, is a wealth advisor and CERTIFIED FINANCIAL PLANNER™ at Highland Financial Advisors, LLC, a fee-only fiduciary wealth advisory firm based in Wayne, New Jersey.
Joe specializes in working with newly independent women because of divorce or losing a spouse. He understands firsthand the value of having a clear financial picture pre- and post-divorce and a plan to restate goals as a single person. When he is not helping clients, Joe enjoys spending time with his two sons outdoors and volunteering to help raise money for Type 1 diabetes organizations.