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Articles and Frequently
Asked Questions
Related to Divorce
Divorce Articles ·
FAQs
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A CDFA™ is a financial expert
thoroughly trained in the financial issues of divorce through the Institute
of Divorce Financial Analysts. A CDFA™ takes all of your financial issues into
consideration and can help provide you with better more detailed information to help you
make the right decision in your divorce settlement. |
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The Institute
of Divorce Financial Analysts recommends a CDFA™ for the following reasons:
Analysis conducted early in the
divorce process can save time.
A Certified Divorce Financial Analyst™ (CDFA™) can explain all financial
aspects of the pending decisions and help to empower their client to make educated
decisions throughout the proceedings.
A CDFA™ can help their client
save money during the divorce process.
By using a CDFA™, you can have a clearer view of your financial future to
approach a legal settlement that fully addresses your financial needs.
A CDFA™ can help their clients
to avoid long-term financial pitfalls related to divorce agreements.
Working with a client and their attorney, a CDFA™ can forecast the long-term
effects of the divorce settlement including details of all tax liabilities and benefits.
CDFA™'s can assist their
clients with developing detailed household budgets to help avoid post-divorce financial
struggles.
A CDFA™ can help clients think through what the divorce will really cost in the
long run and develop a realistic monthly budget during the financial analysis process.
Using a CDFA™ can reduce the
amount of apprehension and misunderstanding about the divorce process.
Misinformation and misconceptions about the divorce process can be detrimental. Many
have false expectations that they will be able to secure a divorce settlement allowing
them to continue with their accustomed style of living. Financial divorce analysis helps
to ensure a good, stable economic future and prevent long-term regret with financial
decisions made during the divorce process.
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Keeping the matrimonial home is often the
one item of matrimonial property where our emotions cloud the ability to make sound
financial decisions more so than in any other area. We often feel overwhelmed at the
thought of moving. We want to retain the home for stability for our children. Retaining
the matrimonial home after divorce should of course be a sound financial decision. Do you
know what it costs to maintain your home? Do you need to renegotiate a mortgage and if so,
would you qualify? Are you prepared for the workload that comes with maintaining a home on
your own? These are all questions that a trained CDFA™ can help you review and
resolve, but that must be considered before determining that keeping your home is the
right decision in your divorce settlement. |
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Visit the Canadian
Department of Justice Website for information concerning child support. For
interpretation and clarification of this information, you should consult a family lawyer. |
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Pension benefit accumulated during the
marriage is most often considered marital property. Pension valuation in the case of a
Defined Benefit pension plan is complicated, and after discussion with a CDFA™, an
actuary specializing in pension valuation will have to be consulted.
When contemplating what assets to take in
a divorce settlement, one must consider at least a few factors with respect to a spouse's
pension.
Firstly, if you need cash now, pension
money will not be available today; it will be transferred usually to a locked-in
retirement account for you for many years (the particular pension administration of the
spouse's pension must be reviewed).
Secondly, do you have a capable
financial broker who can wisely help you invest these funds?
Thirdly, in the overall picture of your
financial situation both from a cash flow perspective and a property perspective, is this
in your best interest?
Pensions are often one of the most
complicated areas of marital property division, and care should be taken before making the
decision about including a portion of this asset in your division settlement. |
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First of all, take a deep breath.
Second, consult a CDFA™ or your
accountant so that you are prepared to meet with your lawyer. You will be asked to collect
information and documentation on every bank account, credit card, investment, mortgage,
pension, and any other asset or liability of your marriage. This can be an overwhelming
task, but when most people sit down with pen and paper and make notes on anything they can
think of in this area, they actually have more information with respect to their property
than first thought. Begin to make notes on everything you can think of, it will help your
CDFA™ and lawyer immensely. This will at least provide you with a good start; the
professionals will guide you from there. |
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A separation agreement is a legally
binding contract between spouses (married or common-law) or ex-spouses setting out the
terms of their relationship after separation (or the decision to separate). This agreement
often deals with how property (and debts) will be divided between the spouses, spousal
support, child support, child access and other issues. |
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