It’s important to realize that divorce is the breakup of an economic unit, as well as a family unit. The process should be approached as a dissolution of a financial partnership, with each party attempting to remove the emotions from the process in order to develop a workable plan. There are three common emotions that are prevalent in the beginning stages of a divorce: fear, anger and guilt. It can be a role of the CDFA to recognize these emotions, determine where they are coming from, and help defuse them.

Developing comprehensive insight of the short-and long-term financial effects of divorce can save valuable time, money and distress, especially if the process is conducted early in the legal proceedings. Many separating couples seek individual legal assistance before assessing their financial situation. While lawyers serve a crucial role as individual legal advocates, they are not necessarily there to explain financial consequences in detail.

But with proper planning and expert help from professionals specializing in financially equitable divorce settlements, you can increase your chances of arriving at a settlement that fully addresses your long-term financial needs. Working with a client and their lawyer, a Certified Divorce Financial Analyst™ can forecast the long-term effects of the settlement. By using a CDFA, you can have a clearer view of your financial future.

Misinformation and misconceptions about the divorce process can be detrimental. Many people 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.

Recent quote from client….

“The most beneficial thing about using a Certified Divorce Financial Analyst was that she could help me plan for my future, including my division of assets, tax ramifications and my long-term vision,”. “I needed to know how the whole situation was going to look in ten years rather than just in the short term.

Here are a few key financial elements to be aware of when going through a divorce:

1) Remember that the decisions you make now will affect the rest of your life. Developing a long-term forecast for your financial situation is far better than a short-term snapshot. Financial decisions must be made that not only take care of immediate family needs, but retirement needs as well.

2) Think through what the divorce will really cost you in the long run and develop a realistic monthly budget during the financial analysis process. Expenses such as life insurance, health insurance and cost of living increases must be taken into consideration when agreeing on a final financial settlement

3) Have a CDFA sort through your various assets and debts to determine what your financial picture looks like. There are marital and separate assets. Note which credit cards and loans are open and joint. The same holds true for debts. Secure copies of your credit report.

4) Be aware of all tax liabilities and benefits. The monthly distribution of the financial settlement will change individual tax burdens based on the amount of maintenance (taxable income to the recipient) vs. child support (tax free income to the recipient).

Eva Sachs

Eva Sachs iCFP® CDFA™ is the founder of Eva Sachs Divorce Financial Consulting, providing advice about all financial issues when facing divorce. View her profile at

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