Involving a Financial Advisor in Divorce Mediation

Involving a Financial Advisor in Divorce Mediation
Involving a Financial Advisor in Divorce Mediation

We have discussed how a CDFA® can help in your divorce process in this blog. One thing we have not covered is how a Certified Divorce Financial Analyst® and a Certified Financial Advisor are different. You may often find a CFP who is also a CDFA® and that is a great combo if you are looking to add a financial professional to your divorce process. Read on for the benefits of involving a financial advisor in divorce mediation.

Certified Divorce Financial Analyst® Versus Certified Financial Advisor

One of the differences I have found helpful when working with a combo CFP and CDFA®, is their ability to dig deep into the projections of what the settlement will look like several years out into the future. When involving a financial advisor in divorce mediation, they advise you on how to best invest and save to ensure you have plenty of funds once you stop earning monthly cash flow. Having this perspective has proven to be invaluable on several occasions with clients where the main cash flow is investment income.

Simplifying the Process

It is difficult to explain to someone that they aren’t receiving support after a 30-year marriage because they have plenty of income from their investments. The spouse who is not familiar with how the investments work or how their monthly cash flow comes from these investments is not going to be very happy. A CFP can show them, in a language they can understand, that due to having a significant amount in assets, that is providing, for example, $200k annual income, there is no additional support needed. Further, if there is a good rapport built through the process, then the individual who helped you through this process can help you manage your settlement and put into effect the financial plan you discussed throughout your divorce process. A financial advisor is trained to take very complex jargon and turn it into an understandable conversation. I know there are a lot of financial advisors out there who do not do very much in the way of hand-holding, and that is fine for many investors. However, there is often a need to have someone who is very hands-on and we work with many who are great at doing this. We will love to share these amazing professionals with you!   

Having a neutral professional to help you navigate creative solutions can provide the answers you need to move your life forward. As your mediator, we will help you both prioritize what is most important and then work with you to arrive at solutions that work best for your family. Contact West Coast Family Mediation Center for more.

by: Jennifer Segura

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