Here’s a guide to some of the major financial designations, explaining what they do and how they can help with the financial issues of divorce.

According to surveys conducted by Divorce Magazine, money is one of the top reasons for divorce. If you had trouble balancing your household budget before divorce, then financial planning is likely to become even more difficult during and after divorce – unless, of course, your spouse was creating financial problems by spending above the family’s means, gambling, or unsuccessfully playing the stock market, for instance. If money is likely to be an issue during your divorce process, you should seriously consider hiring a professional who specializes in the financial issues of divorce. Here’s a guide to some of the major designations:

An Accountant (CPA in the USA; CA, CGA, or CPA in Canada) can also handle many of the financial matters of your case – from tax issues to net-worth calculations. During divorce, they may be hired to calculate the tax effect of dividing property and spousal support, for example. Generally, they do not create future projections beyond looking at tax effects for one or two years. An accountant could also be hired to perform forensic accounting – such as helping to find “hidden” assets, or to let you know that there are no assets to find. Some accountants hold additional designations that could be useful in your case, including:

  • ABV (Accredited in Business Valuation)
  • ASA (Accredited Senior Appraiser)
  • BCFE (Board Certified Forensic Examiner)
  • CFE (Certified Fraud Examiner)
  • CVA (Certified Valuation Analyst)
  • MAFF (Master Analyst in Financial Forensics)
  • PFS (Personal Financial Specialist).
  • If you think your spouse is hiding assets, a BCFE, CFE, or MAFF should be able to either confirm your suspicions or set your mind at ease; if you and/or your spouse own your own business, an ABV or ASA can value company assets and goodwill.

Financial Planners help their clients set and reach their financial goals – whether they are single, happily married, or divorcing. Not all financial planners have in-depth knowledge of divorce issues, so make sure you ask about this before hiring one. A financial planner will take an inventory of the client’s current assets and liabilities, ask about their goals, assess their comfort level with risk, then create strategies by which the client can achieve those goals.

  • Certified Financial Planner® (CFP®) professionals are knowledgeable in all areas of financial planning, including stocks and bonds, tax and insurance issues, retirement planning and estate planning. Financial planners help clients to understand their current financial situation, and to work towards goals based on what the client says is most important to him/her.
  • Chartered Financial Consultant (ChFC®) professionals have completed nine or more college-level courses in financial planning – the most extensive in the financial services industry. They assist clients in protecting assets; managing risk; tax, retirement, and estate planning; and creating an investment approach to help client reach goals.
  • Chartered Financial Analyst® (CFA®): the CFA Program focuses specifically on investment knowledge, so you aren’t likely to find many who specialize in divorce issues.
  • Certified Divorce Financial Analyst® (CDFA™) professionals are usually also financial planners or accountants – and occasionally lawyers – who have completed additional coursework and testing in the specific issues of divorce. One of their roles is to analyze the short- and long-term consequences of settlements in order to let you know which may appear fair and equitable on the surface, but will not work in the long run. A CDFA professional can take let you know what the financial impact of “Settlement 1” vs. “Settlement 2” will be. For example, they can show you what might happen to your finances if you decide to trade your interest in your spouse’s pension for his/her share of the marital home.

You may need to have property owned by you and your spouse (either together or separately) valued; this includes everything from the house to the cars to the vacation properties to expensive artwork or jewelry. If you or your spouse owns a business (again, either together or separately), your financial professional may need to see corporate minute books, brokerage statements, or an independent valuation of the business by a qualified professional (such as an ABV or ASA).

The bottom line is that your divorce financial specialist will need to review any and all paperwork that involves the transaction of money for both you and for your spouse.

For more information about the role of financial professionals in divorce, please go to www.divorcemag.com/financial-issues.