I think people should really be asking how much it costs me if I don’t work with a CDFA® professional, but I know that cost is important as you’re going through a divorce and that this question might be more top of mind. I will address both questions and the factors that might affect the cost in this blog.
When navigating the financial complexities of divorce, one professional who can make a significant difference is a Certified Divorce Financial Analyst® practioner. While some mediators (myself and most of the mediators at West Coast Family Mediation) are also a CDFA® professional, that is not common. A CDFA® professional specializes in the financial aspects of divorce and can help individuals and couples make informed decisions about their financial issues during the divorce and their financial future. As mediators, we can only wear one hat at a time, so when we work as mediators, although we can bring our knowledge and experience, we do not work as your CDFA® in the same case. That being said, if you can hire a mediator who is a CDFA® practitioner, you get the benefit of someone who understands the financials better and can better advise when having a CDFA® professional involved would be a good idea.
What is the role of a CDFA®?
Before I go into the costs, it’s helpful to understand the role of a CDFA® professional so you can understand when one might be helpful for you. A CDFA® professional provides expert financial guidance during a divorce to help you understand how the financial decisions you’re making during the divorce will impact your future. They can work as a neutral like your mediator, or they might work with just one of the spouses to advise them on the financial side of the divorce. Their role may include:
- Analyzing the long-term financial impact of a proposed divorce settlement
- Assisting with property division, including complex assets like stock options or real estate, especially when there might be separate property claims involved
- Help with budgeting for post-divorce
- Marital standard of living analysis
- Evaluating tax implications of settlement options
How much does it cost to work with a CDFA® Professional?
When working with a CDFA® professional, the hourly cost usually ranges from $200 to $500 an hour, depending on their experience and the complexity of your case. The number of hours it will take will again depend on the scope of their services and how complex your case is. If your case involves multiple properties, a business, or high net worth portfolios, that is generally going to cost more because there is additional analysis needed.
Additionally, whether you have your CDFA® professional participate in meetings and communicate directly with other professionals, such as your attorney, mediator, or CPA, will contribute to the overall cost. Some offer flat-fee packages for specific services, which can often help keep costs down and at least give you an idea of what you will pay overall. If you need a specific service, such as calculating the separate vs. community property of stock options or a Moore Marsden calculation, you may find a CDFA® professional who would charge you a flat fee. The other cost variation will be where you and they are located.
There are certainly ways to make CDFA® professional services more affordable, though. The first is to set clear goals before you hire someone. By outlining your financial questions and goals ahead of time, you can make your meetings more efficient. The second is to be as prepared as possible. While you might need them to help find some financial documents, the more you can provide to them before you meet, the less time they’ll have to spend on data collection. Lastly, working a CDFA® professional who is used to working in mediation will mean that they know what their lane is and what your mediator will handle for you so there is not double work happening.
How much does it cost if I don’t work with a CDFA® professional?
Now, while it’s harder to accurately quantify how much it will cost you if you don’t work with a CDFA® professional. They will save you money and stress in the long run, but they will also ensure you’re considering what you need to before making any agreement. They can ensure that you’ve looked at the tax ramifications of your assets versus what your spouse is keeping. This may help you create a realistic post-divorce budget so you know that you’re receiving what you need in support. Not all assets are created equally! They can help you save money in future taxes that you or your attorney may not have considered. The clarity that a CDFA® professional can provide can prevent costly litigation and reduce the likelihood of financial surprises after the divorce.
Have questions or are interested in working with a mediator who is also a CDFA® professional? Contact us and let us know how we can help you.