Divorce FAQ

Definitely not! The Institute of Divorce Financial Analyst (IDFA) does not suggest this. They recommend that any person going through a divorce or separation should seek a legal counsel. The role of the CDFA professional is to assist the lawyer and not to act in his place.

The training of CDFA professionals makes them capable of representing both males and females. Their job is to interpret data and help the couple or the induvial build a strong understanding of their divorce financial situation. Before they begin mediation, Collaborative law or Family Court Litigation.

Many CDFA professionals are professional mediators. They are also collaborative professionals who can be neutral in assisting both parties. Their role is to make mediation or collaborative process easy. Yet, not all CDFA professionals are lawyers. So, they can’t give legal advice because it is against the recommendation of the IDFA. I often mediate separating couples to settlement and draft their separation agreement.

This sometimes gets a ‘yes’ and sometimes a ‘no’. Based on the factors of taxes and insurance, it is important to know what it will cost. Next is to know if your income is enough to pay the bills each month and keep the house in good repair-i.e. to live comfortably. After that is known, a priority of keeping the house or other assets, such as liquid accounts, retirement plans, etc. has to be taken. Finally, all the decisions made must be weighed on getting an alternative house. The job of the CDFA is to help answer these questions before a commitment is made to a financial settlement and can’t be changed.

The whole house is termed matrimonial property. You must consult with a family law lawyer to discuss your option as you might have made a “presumptive gift”. In some province or territories, as long as both of you lived in the house while married, the house is said to be matrimonial property. It does not matter whose name is on the title to the home. So you must discuss with your family law lawyer your unique situation.

Speaking generally, pensions and retirement plans are assets earned within marriage. Usually, the part earned during marriage being subjected to division. Yet, it may be possible to keep your pension and have the value of the pension offset with other assets.

Assets acquired within the marriage in most provinces are matrimonial property. It does not matter whose name is on it. In some other cases, some provinces also consider the increase in the value of a separate property as matrimonial property. In determining the value of RRSP, know that tax is to be considered. Also, consider the opportunity to transfer a registered retirement account without having tax consequences. Discuss with the CDFA professional your options.

Knowing that no two cases are the same, complicates the test for spousal support also known as “maintenance”. You must discuss with a family law lawyer to know whether the peculiarity of your case gains an entitlement to receive spousal support. Once you have received entitlement, some factors will determine the amount and duration:

• Need: Do you have enough money to sustain yourself? This could be from your income, investments or other property.
• Means (ability to pay): Can the payer afford to pay support and still have enough money to live comfortably?
• Length of marriage: A short term marriage without children may not qualify for spousal support. But a long term marriage starting from 20 years and above may qualify for indefinite support.
• Age and health of both parties.

Many factors determine entitlement, amount and duration as no two cases are the same. It is always recommended that independent legal advice is to be sought on this issue.

For child support claims made under the Divorce Act, there are the Child Support Guidelines published by the Federal Government. These guidelines are called the Federal Child Support Guidelines. All provinces and territories have their own version of the child support tables. But these factors generally determine child support:

• Age of the child;
• Physical custody; and
• The income of the payor, or with shared or split custody, both parties.

Even with guidelines in place, determining child support can be complex. Determining the income of an entrepreneur or a self-employed person is difficult. This is because they control their wages. In this situation, you can easily get help by employing the services of an expert. Experts such as a CDFA or a Business Valuator who will follow the Child Support Guidelines to establish the real income aka Guideline Income to base the child support calculation on.

Child Support is made up of two components;

The first component is Table Amount Support for the basics like Food, Housing and Clothing.

The second component is the extra’s like Daycare, extracurricular activities. post-secondary education expenses, medical and dental expenses not covered by insurance, private school and so on, these expenses are known as “Section7 expenses”

The Institute of Divorce Financial Analysts recommends a CDFA™ for the following reasons:

1. Analysis conducted early in the divorce process can save time.
2. 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.
3. A CDFA™ can help their client save money during the divorce process.
4. 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
5. A CDFA™ can help their clients to avoid long-term financial pitfalls related to divorce agreements.
6. 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.
7. 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.
8. CDFA™’s can assist their clients with developing detailed household budgets to help avoid post-divorce financial struggles.
9. CDFA™’s can assist their clients with developing detailed household budgets to help avoid post-divorce financial struggles.

A CDFA™ is a Divorce financial specialist 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.

Where do I begin, and will I still get a fair settlement in my divorce?

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.

Only if you can’t come to an agreement- less than 5% family law cases go to trial. Talk to your lawyer to discuss other workable out-of-court options. This option should suit the specificity of your case. There are a lot of other options you can get. Collaborative practice and mediation are some of such options.

Certified Divorce Financial Analyst (CDFA) trained specially. Their training makes them capable of analyzing different settlement proposals. They are also trained to look at the long term consequence of decisions their clients make. They also give important information on related issues of separation and divorce. They are also adept at issues such as tax consequences. dividing pension plans, insurance needs and much more. CDFA professionals also assist lawyers. Their role in such situations is to help their clients understand the impacts of their various settlement proposals. And they assist lawyers with tools such as charts, graphs and financial plans.