How Can a Divorce Financial Planner Help and Support You?

Summary:

A divorce financial planner helps people make informed economic decisions during and after divorce. Certified Divorce Analysts® (CDFA®) bring specialized knowledge to assess settlements, tax implications, and future financial needs. Working with a trusted advisor can provide a more confident transition into the next phase of life.

Main Points:

• A divorce financial planner focuses on the financial side of divorce, offering support beyond legal representation.
• Certified Divorce Financial Analysts® (CDFA®) are trained in divorce-specific financial planning.
• Asset division during divorce can be complex, especially with retirement accounts, property, and shared businesses.
• Key strategies include documenting assets, understanding state laws, and building a solid financial plan for post-divorce life.
• Choosing a transparent, credentialed advisor is essential—avoid red flags like guaranteed returns or unclear fee structures.

Divorce can be one of life’s most emotionally andfinancially challenging events. The decisions you make during this time can have long-lasting implications, especially when it comes to your money. That’s where a divorce financial planner can make a meaningful difference.

In this article, we’ll explore how a divorce financial planner can support individuals through the financial aspects of divorce, explain the role of a Certified Divorce Financial Analyst®, and offer insights into protecting your financial security during this significant transition.

What Does a Divorce Financial Planner Do?

During the complicated financial intricacies of divorce, a divorce financial planner is a professional trained to help guide you toward a tailored strategy. While attorneys focus on legal outcomes and mediators facilitate communication, your divorce financial planner will focus solely on the short and long-term financial consequences of your choices.

They can help you:

• Understand the actual value of your marital assets
• Analyze the impact of different settlement scenarios
• Identify potential tax consequences
• Plan for post-divorce income, expenses, and savings needs

One credential to consider is the Certified Divorce Financial Analyst (CDFA) designation. A CDFA® brings specialized knowledge and training centered on divorce-related financial planning and can work alongside your attorney as the mediator to clarify any financial decisions. They can advise on issues involving retirement accounts, real estate, or business interests.

How Does Divorce Finance Work?

Divorce finance refers to the financial decisions and strategies surrounding the dissolution of a marriage. While every divorce is unique, there are some universal principles to understand.

Dividing Assets in Divorce

At the heart of most financial settlements is the question: how are assets divided in divorce? The answer depends on several factors, including the state in which you reside, whether you have signed a prenuptial agreement, and the types of assets involved.

Typically, assets can be classified as either:

• Martial Property. Acquired during the marriage and subject to division.
• Seperate Property. Acquired before the marriage or through inheritance and usually not divided.

The process of dividing assets in a divorce can be complex, particularly regarding retirement accounts, investment portfolios, and jointly owned businesses. A divorce financial planner can help you uncover hidden liabilities, assign realistic values, and structure a settlement that considers both parties’ future financial health.

What is a Red Flag to Watch for in A Financial Advisor?

Selecting the right financial guidance for your divorce is critical. But how can you tell if a financial professional may not be the right fit for you?

• Promises guaranteed returns. No investment comes with zero risk, and words like “guaranteed” should immediately raise concerns.
• No Transparency. You should understand exactly how your advisor is compensated and what services they offer.
• One-Size-Fits-All Solutions. Divorce is personal. Your financial strategy should be, too.
• Pushy Sales. Your financial planner should be willing to actively listen and inform you rather than pressuring you into decisions.

Working with a trusted, well-reviewed, and reputable advisor, such as those at Dechtman Wealth Management, can provide you with clarity and calm during a chaotic and difficult time. Our team emphasizes fiduciary care and tailors strategies to your unique needs.

How to Protect Your Assets in a Divorce

During a difficult transition, it is entirely natural to worry about protecting your assets in a divorce. The most effective approach involves thorough preparation, meticulous documentation, and expert guidance.

Here are the key steps to consider:

• Inventory your assets and liabilities. Include bank accounts, debts, properties, and retirement plans.
• Keep detailed records. Essential for any property type you believe to be separate.
• Avoid financial entanglements. Financial entanglements include co-signing for new loans or changing beneficiaries before official settlement.
• Work with trusted advisors. Include a divorce financial planner who can help evaluate settlement options and long-term consequences.

Occasionally, clients may ask us how to protect their money in a divorce. The answer lies in creating a post-divorce financial strategy that considers both immediate needs and future goals. This includes budgeting for a new cost of living, managing debt, and maintaining contributions to retirement savings.

How to Get Through a Divorce Financially?

Surviving divorce emotionally is complicated enough on its own; trying to navigate it financially is another. Here’s how you can support your financial security throughout the process:

1. Build a Support Team

Alongside your attorney, consider a divorce financial planner who understands your entire financial picture and can assist you in evaluating the long-term impacts of proposed settlements.

2. Track Your Expenses

Knowing your current and projected expenses helps you negotiate support payments and plan your new lifestyle.

3. Set Realistic Expectations

Divorce can impact your standard of living. A thoughtful plan can guide you in affording to maintain your lifestyle and have sufficient funds for as long as you live.

4. Prioritize Financial Organization

Update beneficiary designations, retitle joint accounts, and establish a post-divorce financial strategy that reflects your goals.

A Divorce isn’t the End—it’s the beginning of a Financial Reset

Divorce may mark the end of a chapter in your life, but it also means the beginning of another. A chapter filled with opportunities for renewed financial stability and clarity.

Working with a divorce financial planner, particularly one with the CDFA® credential, gives you an informed partner by your side as you work through decisions about dividing assets, understanding tax implications, and planning your financial future.

By knowing how to protect your assets in a divorce and how to protect your money in a divorce, you’re not only managing the present, but you’re preparing for what’s next.

If you are amid complicated financial plans or decisions, know that you don’t have to try and figure it out on your own. The team at Dechtman Wealth Management is here to walk alongside you—step by step, decision by decision.

Schedule your complimentary assessment today and begin your path toward financial clarity.