The Role of a CDFA in Collaborative Divorce

By Patrick Janssen 

Unlike most of the traditional separation processes, the collaborative approach to divorce includes a Financial Neutral (FN) that usually holds the designation of Certified Divorce Financial Analyst (CDFA).

The support that the FN provides is helpful with identifying the most appropriate financial settlement option for both spouses by utilizing the flexibility within the Colorado Divorce Statutes in the areas of property division, spousal maintenance, and child support.

After Detailed Financial Information is Collected

Once detailed financial information is collected, the Financial Neutral then builds a forward-looking living expense budget and the marital balance sheet (inventory of all assets/liabilities). This information is then used to model and evaluate different property division (asset/liabilities) and spousal maintenance scenarios to understand the impact to each spouse’s current and future cash flow and net worth. Often there exists projected disparate financial futures after separation finalization so this allows the Financial Neutral and the Collaborative Team to negotiate adjustments to property division, spousal maintenance, and other financial areas such as child support to best meet each spouses’ financial goals moving forward.

Having a Financial Neutral as a member of the Collaborative Team provides greater financial insight with divorce before finalization that facilitates comprehensive discussions and solutions to better meet the financial goals and objectives of each spouse.