CDFA vs. Financial Advisor: Choosing the Right Support During Divorce
During the divorce process, there is a role for both CDFA® s and financial advisors to play, and differentiating between the two is important.
When I went through my divorce in 2016, I didn’t use or even know what a CDFA® was. I did have an amazing financial planning company who had worked with our family for many years and was able to provide clarity around the financial assets that needed to be divided. Their financial advisor team helped me envision a financial future, came with me to attorney visits, and advocated for my needs.
What they didn’t have was personal experience or specific training on the financial realities of divorce. They didn’t know what it was like to wrestle with the reality of going back to work after being a stay-at-home mom. Or to consider the possibility of leaving the only home my girls had known. To take the reins of my financial future when I had all but abdicated every financial decision to my husband. All while I was managing my own emotional storm AND that of my children.
In reality, less than 5% of the women I have worked with have a personal relationship with a financial advisor who can help them navigate their divorce. That knowledge is what led me to become a CDFA®.
CDFAs can come from a wide variety of financial backgrounds and address the work in lots of different ways. At Healing House Solutions, we approach CDFA® work as advocates for women who have varying degrees of financial knowledge and need someone to help educate and empower them to make wise financial choices during divorce. We engage each client with curiosity and a desire to come alongside them to create a financial foundation on which to build a new life.
Our systematic approach incorporates the necessary fundamentals of budgeting, the collection of asset information, and the understanding of support options that are specific to Oregon and SW Washington. Together with clients, we complete a situational analysis and assess multiple division and support scenarios, providing options to inform settlement negotiations. We are in the weeds of the divorce process with lots of women at one time, and regularly consult with other CDFAs®, mediators, financial advisors, therapists, and even attorneys so we have a pulse of the current divorce landscape. With expertise and understanding of the current real estate market in the state of Oregon, we also bring valuable guidance for those who have real estate assets. We are not long-term financial advisors (which means we don’t facilitate retirement rollovers or manage financial assets), but we have great partnerships with organizations who we regularly collaborate with and refer women to.
I still use the same financial planning company that I was with before and during my divorce. They’ve created a long-term financial plan for me that we revisit yearly (at minimum), provide tax advice, manage the accounts that rolled over during my divorce, and have helped me build for retirement. Having them on my team has been a financial lifeline, and I highly recommend considering adding a financial advisor to your support team during and after divorce.
The financial implications of divorce can feel overwhelming, and it’s hard to know where to start. In a recent survey of Healing House Solutions clients, 100% said they felt more financially equipped and confident after working with us. And that is the goal. Whether you choose to work with a financial planner, advisor, CDFA, or all of the above, we strongly encourage you to seek support as you consider your financial next steps.
