What is a Divorce Financial Adviser and How to Find The Right One

Divorce can be one of the most stressful times in anyone’s life. Financial worries can compound the emotional toll. A divorce financial adviser can help to reduce the financial burden by ensuring an equitable financial agreement and advising you on financial steps after the divorce. Below you’ll learn how a divorce financial adviser can help you and what to look for in these specialized finance professionals. 

What is a Divorce Financial Adviser?

A financial adviser offers advice and guidance on financial matters, including savings, investments, taxes, retirement and estate planning. Their role is to help clients manage their money and achieve financial targets. These professionals may actively manage investment accounts or provide a plan you can execute yourself. 

Divorce financial advisers specialize in planning for financial situations that commonly arise during a divorce. This can include:

• Division of personal assets and property
• Retirement account division or treatment 
• Child support or alimony
• Tax implications
• Insurance planning

You can look for a divorce financial adviser that holds a professional designation as a Certified Divorce Financial Analyst (CDFA) or a certified divorce financial adviser. A divorce financial adviser may work with your attorney to help you get the best settlement possible and build a financial plan to move forward after the divorce. 

When To Consider Hiring a Divorce Financial Adviser

A good divorce financial adviser or collaborative divorce financial adviser can help mitigate an uncomfortable and complex experience while creating a plan to help you move forward. Here are seven situations when you might want to consult a financial adviser during a divorce:

1. Early stages of contemplating divorce

Consulting with a divorce financial adviser early on can be helpful if you are considering or anticipating a divorce. They can provide you with insights into the potential financial implications of divorce and help you make informed decisions about your financial future.

2. Complexity of assets and liabilities

If you and your spouse have significant assets, investments, real estate, businesses or complex financial portfolios, a divorce financial adviser can assist in equitably evaluating and dividing the assets. They can provide expertise in assessing the value of different assets and tax implications and help ensure a fair division of property.

3. Alimony and child support considerations

Determining the appropriate amount of spousal support and child support can be complex. A divorce financial adviser can analyze both parties’ incomes, expenses and other relevant factors to help establish fair and sustainable support arrangements.

4. Retirement and long-term financial planning

Divorce can significantly impact your retirement plans and long-term financial goals. A divorce financial adviser can help you understand how the divorce settlement will affect your retirement savings, insurance policies, and other financial plans. They can assist in developing a new financial strategy to meet your post-divorce goals.

5. Complex tax implications

Divorce can have various tax implications, including changes in filing status, deductions and tax liability. A divorce financial adviser can work with you and your tax professional to identify potential tax consequences and help you navigate the tax aspects of the divorce process.

6. Business ownership and valuation

If you or your spouse own a business, a divorce financial adviser with expertise in business valuation can provide valuable insights. They can help determine the value of the business, assess its impact on the division of assets and provide guidance on potential buyouts or other arrangements.

7. Financial advocacy and negotiation

A divorce financial adviser can act as a financial advocate during divorce proceedings. They can work closely with your divorce attorney to protect your financial interests, provide guidance on settlement options and assist in negotiating a fair financial outcome.

How to Choose a Divorce Financial Adviser

If you’ve determined that a divorce financial adviser can offer valuable advice, below are the steps to take to help you choose the right professional for your needs. 

1. Seek specialized expertise

Look for a financial adviser who specializes in divorce financial planning. They should have experience working with clients going through a divorce and understand the financial implications and complexities involved. Look for a divorce financial adviser who can provide insurance advice and understands how to protect your assets moving forward.  

2. Consider certifications and credentials

Look for certifications such as Certified Divorce Financial Analyst (CDFA) or Certified Financial Planner (CFP) with a specialization in divorce financial planning. These credentials indicate that the adviser has received specialized training in divorce-related financial matters. 

3. Research their experience

Evaluate the adviser’s experience in working with divorce clients. Consider factors such as the number of years they have been practicing, the number of divorce cases they have handled and whether they have experience with cases similar to yours. Ask for referrals and read reviews. 

4. Evaluate their approach and services

Discuss their approach to divorce financial planning and understand the services they offer. A good divorce financial adviser should provide comprehensive services, including analyzing marital assets, developing post-divorce budgets, projecting long-term financial scenarios and assisting with settlement negotiations.

5. Request references and testimonials

Ask for references from past clients who have gone through divorce with the adviser’s assistance. Reach out to the references to inquire about their experiences, the level of support they received and their overall satisfaction with the adviser’s services. Look for online reviews and be sure to read the negative reviews and ask about any concerns they raise. 

6. Evaluate personal compatibility carefully

Divorce is a highly sensitive and emotional process, so finding an empathetic patient adviser who can communicate effectively is essential. During an initial consultation, evaluate how well the adviser listens, understands your concerns and explains complex financial concepts in a way you can understand.

7. Understand their fee structure

Discuss the adviser’s fee structure and understand how they charge for their services. Some divorce financial advisers may charge an hourly rate, a flat fee or a percentage of the assets involved in the divorce. Ensure you are comfortable with their fees and clearly understand the costs involved and how these costs can affect your assets after the divorce. 

Best Places to Find Reliable Divorce Financial Advisers

You can find a reliable divorce financial adviser through online directories, professional networks or a referral from another financial adviser, friend or family member. 

1. Referrals from divorce professionals

Seek recommendations from divorce attorneys, mediators or therapists who specialize in divorce cases. These professionals often work closely with divorce financial advisers and can provide valuable insights and referrals based on their experience.

2. Professional networks

Reach out to your professional networks, such as colleagues, friends or family members who have been through a divorce. They may have worked with a divorce financial adviser and can share their experiences or provide recommendations.

3. Online directories

Use online directories that specialize in connecting people with divorce financial advisers. These directories often include ratings, reviews or other information on the financial advisers to help you choose the best fit for your needs. 

4. Local seminars or workshops

Attend local seminars, workshops or educational events focused on divorce or financial planning. These events feature guest speakers who are experts in divorce financial planning, providing an opportunity to learn from them and connect with reliable advisers. You can also find reliable referrals through networking at these events. 

Selecting the Right Divorce Financial Adviser

Every marriage and every divorce is unique. Your financial situation, relationship and future financial goals deserve expert advice to create a path forward. You can choose to consult a divorce financial adviser one time or hire them to manage your funds for an extended period. In either case, qualified professionals with a strong track record of success can remove some of the burden of the divorce so you can focus on your family and next steps. 
If you’re ready to get started, look at the best financial advisers, online financial advisers or get tools for personal finance, like the best high-yield savings accounts here.

Frequently Asked Questions