The Role of a CDFA® in a Divorce 

    A Certified Divorce Financial Analyst (CDFA®) has completed intensive training in the financial and tax complexities that arise during divorce. This includes passing a comprehensive exam through the Institute for Divorce Financial Analysis (IDFA) and completing ongoing continuing education to maintain the designation.

    At EP Wealth, our CDFA® professionals work directly with clients and their attorneys to help make sense of the financial choices that can shape life after divorce. We evaluate financial data and model the impact of different settlement options, allowing clients to weigh the potential risks and trade-offs.

    Our CDFA® professionals provide:

    • In-depth analysis of income, assets, liabilities, and financial records
    • Scenario planning to compare short- and long-term outcomes of proposed settlements
    • Insight into how support payments, asset transfers, and timing may affect taxes
    • Guidance around budgeting, liquidity, and future financial planning

    With a clear view of both the numbers and the broader implications, we help clients navigate what can be a highly complex and emotionally charged process with the goal of reaching a fair and mutually agreed-upon resolution.

    Key Services an EP Wealth CDFA® Can Provide

    Asset Analysis and Valuation

    An EP Wealth CDFA® assesses a wide range of assets to support fair and informed distribution. This includes:

    • Primary residences, vacation homes, and investment properties
    • Business ownership, partnerships, and private equity stakes
    • Retirement plans such as 401(k)s, IRAs, and pensions
    • Stock options, deferred compensation, and RSUs
    • Collectibles, art, and other non-liquid assets

    We help provide clarity on both present and potential future value, while factoring in tax treatment and liquidity.

    Cash Flow and Lifestyle Modeling

    Understanding how a settlement may impact day-to-day living and future income is a critical part of the process. EP Wealth CDFA® professionals help model:

    • Projected cash flow and net worth scenarios
    • Divorce budgeting aligned with expected support payments
    • Long-term impact of different asset division strategies

    These projections can help illustrate whether lifestyle goals are likely to be sustained post-divorce.

    Tax Planning and Settlement Structuring

    Asset division and support payments often carry tax implications that can be overlooked. CDFA® professionals assess:

    • Capital gains exposure on property or investment sales
    • Tax rules related to spousal support and alimony
    • Use of Qualified Domestic Relations Orders (QDROs) for retirement account transfers

    We assist in coordinating settlement structures that take potential tax liabilities into account.

    Support and Alimony Strategy

    CDFA® professionals evaluate the proposed amount, duration, and format of spousal and child support. This includes:

    • Comparing lump sum versus recurring payments
    • Assessing the impact of support on both parties’ financial futures
    • Identifying tax consequences and cash flow impacts

    Our role is to provide analysis that informs discussions around support planning.

    Collaborative Support During Mediation or Litigation

    A CDFA® can serve as part of a broader advisory team. EP Wealth professionals often collaborate with:

    • Attorneys and mediators
    • Forensic accountants and business valuation experts
    • Estate and tax professionals

       

      Key Considerations for Divorce Financial Planning

    Complex Asset Structures

    High-net-worth divorces may involve the dividing of assets that require additional review or valuation, including:

    • Private business ownership
    • Deferred compensation or carried interest
    • Trusts or offshore holdings
    • High-value personal property, family heirlooms, or pension splits

    These complexities may require coordinated input across legal and financial disciplines.

    Maintaining Two Households

    Following a divorce, expenses may shift significantly. Housing, insurance, education, and childcare needs can affect post-divorce budgeting for both parties. When time to rebuild savings is limited, such as in cases involving clients over 50, cash flow projections can be especially important.

    Tax Implications and Retirement Transfers

    Retirement accounts often require special handling in divorce. CDFA® professionals guide clients and attorneys through:

    • QDRO preparation and execution
    • Tax-efficient asset transfers
    • Distribution planning to help avoid early withdrawal penalties

    We also examine how changes in tax-filing status can affect deductions, eligibility for tax credits, and overall taxable income.

    Cash Flow, Liquidity, and Budget Transitions

    Income sources may change after divorce. A CDFA® can help clients assess:

    • Ongoing income from employment or support
    • Asset allocation based on income needs
    • Budgeting tools to manage new or increased expenses

    Planning for both short-term liquidity and long-term goals is a key part of this process.

    Disclosure and Privacy Considerations

    Privacy and transparency are often top of mind for high-net-worth individuals. EP Wealth supports clients in working with legal counsel to:

    • Review financial disclosures for accuracy and completeness
    • Consider mediation or private settlement options when appropriate

       

      How We Continue to Help Clients Post-Divorce

    Our involvement doesn’t end when the divorce is finalized. Divorce may mark the end of one chapter, but it also brings a range of new financial considerations. At EP Wealth, we’re committed to building long-term relationships with our clients and we continue to be a resource well beyond the settlement—helping clients adapt to change, revisit their goals, and make financial decisions with confidence and clarity.

    • Goal-Driven Financial Planning
      After a divorce, financial goals may shift. We help clients reassess lifestyle expectations, retirement timelines, and philanthropic priorities, while also offering guidance during remarriage or other life changes that could affect the original divorce agreement. 
    • Portfolio Rebalancing and Investment Strategy
      A divorce settlement may include a mix of cash, securities, and illiquid assets. We assist in reviewing risk tolerance, income needs, and portfolio structure to reflect the client’s new financial position.
    • Tax Planning and Filing Transitions
      Changes in filing status, deductions, and retirement contribution limits often follow divorce. Our CDFA® professionals help coordinate with tax professionals to address the first year of post-divorce filing and any longer-term tax considerations.
    • Revisiting the Divorce Agreement
      If income, employment, or family dynamics change, we can work with attorneys to review and adjust existing agreements. This may include revisiting support terms or custody-related financial commitments.
    • Long-Term Wealth Planning
      We help clients update estate plans, beneficiary designations, and long-term strategies to reflect evolving goals and family circumstances, providing continuity in broader wealth planning.

       

      TALK WITH A CDFA® AT EP WEALTH

    Whether you're preparing for divorce or adjusting to life after it, EP Wealth CDFA® professionals can assist you in navigating complex financial decisions. We understand the unique financial dynamics that often accompany high-net-worth divorces, and we are here to support you with comprehensive analysis, planning, and coordination.

    Connect with our team to explore how we can help guide your financial planning during and after divorce.

    DISCLOSURES

    • EP Wealth Advisors (“EPWA”) makes no representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information presented. All expressions of option are subject to change without notice. 
    • The Certified Divorce Financial Analyst (“CDFA®”) that are employed by EP Wealth Advisors, LLC are not practicing attorney, accountant, tax professional, or legal expert. All assessments and subsequent recommendations limited and are performed exclusively under the guise of financial planning. An attorney must be retained in order to professional and accurately assess legal options and/or to provide counsel. We also recommend consulting a CPA, accountant, or tax professional. 
    • Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment, tax, or legal advice nor is it intended to supplement professional individualized advice by the appropriate professional(s). 
    • The decision to work with a CDFA® professional will differ amongst clients and depend on individual circumstances of each respective client. There is no guarantee or warrantee that the services offered by EP Wealth Advisors, LLC and/or a CDFA® will satisfy your divorce service needs. Services offered by other professionals may align more to your specific needs.  
    • An estate plan is a helpful tool that can assist individuals in managing and arranging affairs in the event of death or incapacity. However, the scope and extent of the plan varies depending on the unique circumstances and desires of the individual client. It is for this reason, that the analysis encompassed herein is not intended to be comprehensive in nature nor should it be interpreted as legal advice. Please consult a legal professional to determine the extent, scope, and the drafting and creation of the appropriate estate documents. EP Wealth Advisors is not in the business of providing legal advice or preparing legal documents. Our review is limited to and in association with Financial Planning only.
    • Request an appointment with an EP Wealth Advisor when you have a minimum of $500,000 in investable assets – which includes qualified retirement plans (IRA, Roth IRA, 401(k), taxable brokerage, cash (savings / checking) and CDs. Investable assets do not include your home, vehicles, or collectibles.
    • EP Wealth Advisors, LLC. Is registered as an investment advisor with the SEC and only transacts business in state in where is properly registered or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the commission, nor does it indicate that the advisor has attained a particular level of sill or ability.

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