How is giving legal advice different from providing information as a CDFA?

The distinction between giving legal advice and providing information as a Certified Divorce Financial Analyst (CDFA) hinges on the nature and authority of the statements made. Legal advice typically involves specific recommendations tailored to an individual's circumstances, often framed with prescriptive language such as "You should..." This language indicates a directive approach, suggesting a particular action or decision that the recipient ought to take based on their legal situation.

In contrast, providing information is more neutral and factual. Statements that begin with "If you were to receive..." signify that the CDFA is offering general knowledge or context without directing the recipient toward a specific course of action. This approach emphasizes education and understanding rather than guidance, which is crucial in maintaining the boundaries of the CDFA's role and ensuring compliance with legal regulations.

Understanding this difference is essential for CDFA professionals to navigate their responsibilities effectively, ensuring that clients receive the appropriate type of support while avoiding the pitfalls of unauthorized legal practice.