Introduction
Divorce is rarely simple. It can be daunting to achieve equitable or mutually agreeable outcomes, particularly when the divorcing parties must navigate the financial complexity that often accompanies significant wealth.
Both wealth and financial complexity have grown over the past decade[1], spurring a 40% increase in the number of Certified Divorce Financial Analyst® (CDFA) professionals. [2] In addition to completing training on financial issues specific to divorce, CDFA® professionals agree to abide by the ethics code of the Institute for Divorce Financial Analysts, which emphasizes professionalism and responsible provision of services.[3]
As investment advisors and CDFA® professionals who have partnered with attorneys on numerous divorce cases over the past decade, we have developed an understanding of the nuances involved in analyzing the implications of different divorce settlement scenarios. We have also experienced the healthy skepticism of some attorneys, who worry about CDFA® professionals overstepping their role or complicating the settlement process.
We agree that when it comes to ultra-wealthy clients with complex balance sheets, caution is warranted. In our experience, five key qualities have helped us to support attorneys and their clients through the process from both a technical and human perspective. Sharing our experience may be helpful to those considering working with a CDFA® professional.
1. Credentials and resources
We believe attorneys should look for CDFA® professionals who hold additional credentials, such as the Certified Financial Planner (CFP®) or Chartered Financial Analyst (CFA®) designation. Complex assets—ranging from alternative investments to international holdings—warrant the deeper analytical understanding these credentials represent.
Equally important is the infrastructure supporting the CDFA® professional. Are they part of a broader organization with a deep bench of internal professionals? Ready access to investment research, tax, and wealth planning teams can help alleviate the burden on the attorney and may expedite the settlement process. For instance, when a CDFA® professional has ready access to a tax specialist or a research analyst who understands crypto, it saves valuable time and supports a more comprehensive analysis that can help inform the settlement agreement itself.
A solid network of outside partners represents another critical resource. Forensic accountants, estate planning attorneys, and insurance professionals become particularly valuable in cases involving business ownership, restricted stock units, key man insurance, pensions or defined benefit plans, or questions about the source and tracing of assets.
2. Commitment to the full process
In our experience, the most effective CDFA® professional engagements start early in the divorce process. Early engagement allows the consultant to identify potential issues before positions harden and to model various settlement scenarios that can inform negotiation strategy.
Equally important, in our view, is the consultant’s willingness to participate in mediation, arbitration, or trial. Some professionals prefer to work only in collaborative settings or behind the scenes. However, complex cases may require expert witness testimony or presence during proceedings. It’s important to understand whether a CDFA® professional is committed to seeing the case through all potential developments, to avoid potentially having to bring in someone new at a critical juncture.
3. Emotional intelligence
In a divorce, emotions often run high. The ability of a CDFA® professional to provide empathy and encouragement while calmly navigating the technicalities of divorce can help both clients and their attorneys. Throughout the process, the consultant should maintain a responsive and collaborative approach with the attorney, staying within appropriate boundaries without complicating the proceedings. Their role is to illuminate financial implications, not to make legal recommendations or negotiate directly with opposing counsel.
When we are enlisted to work on a case, we seek to help the client think about their goals for the future beyond the settlement, which can also help inform the negotiating strategy. How does the client define personal or professional fulfillment? What opportunities inspire them? Helping clients clarify their personal vision, especially for those who haven’t focused on themselves in years, can play a role in shaping a financial outcome that empowers the client to step in their next chapter with clarity and confidence.
We have also found that spending the time to educate clients can be valuable in supporting them from an emotional perspective. For example, we have a client who was kept in the dark about everything to do with household finances and investments, so while working the case, we have been carefully bringing her up to speed on all the investing, asset allocation, and estate planning techniques that her husband had employed during their marriage. Our goal has been to help this client gain confidence in her abilities to make sound decisions in the future.
Financial decisions made during divorce carry both immediate and long-term consequences. An empathetic CDFA® professional can help identify solutions that address both parties’ deeper interests rather than just their stated positions. By understanding what truly matters to each spouse—whether it’s retaining the family home, preserving a business legacy, or ensuring financial security—the CDFA® professional can help develop creative settlement structures that feel like a win to both sides.
4. Technical knowledge
While emotional intelligence is essential, it must be coupled with sophisticated technical skills. For example, in cases involving extensive private equity holdings, an experienced CDFA® professional can navigate the intricacies of valuation, cash flow analysis, and liquidity constraints to propose settlement structures that achieve equitable distribution.
Another common scenario in high-net-worth divorce cases involves highly concentrated stock positions. A client may find themselves in a position where a large part of their settlement is in a concentrated position that has significant unrealized capital gains, making sales of the stock problematic. Holding these types of positions is risky, potentially adding more concern and anxiety to an already stressful time. An experienced CDFA® professional backed by a strong team of investment professionals can help develop an investment strategy for this type of scenario to manage risk and address tax implications.
5. Potential continuity for the client
What happens after the settlement is finalized? Often, the attorney’s and consultant’s formal roles end at settlement, potentially leaving the client to navigate post-divorce financial life without the expertise that guided them through the process.
An experienced advisor who works beyond divorce cases can provide valuable continuity, facilitating the settlement agreement implementation and handling post-divorce financial logistics while transitioning into an ongoing advisory role. This continuity proves particularly valuable for clients who have not previously managed wealth independently or who need to rebuild their financial confidence.
The dissolution process, despite its challenges, can serve as a foundation for financial empowerment and rebuilding, transforming clients into empowered, engaged wealth stewards.
Conclusion: The importance of choosing wisely
The end of a marriage marks more than a legal transition—it represents a profound reshaping of financial identity and future possibility. For attorneys managing high-asset divorce cases, the choice of a CDFA® professional has implications well beyond technical competence. It can determine whether a client emerges from the process merely intact, or genuinely empowered.
For those considering whether to work with a CDFA® professional, we advocate looking beyond credentials on paper. Assess their commitment to the full arc of the process, from early strategic planning through settlement implementation and beyond. Observe how they balance analytical rigor with human understanding. Consider whether their infrastructure and network can handle the specific complexities of the situation. Most importantly, determine whether the CDFA® professional views divorce work as transactional consulting or as a meaningful opportunity to help someone rebuild their financial life with confidence and clarity.
