What is one function of a CDFA professional in a divorce?

One key function of a Certified Divorce Financial Analyst (CDFA) professional is determining the present value of pensions. In divorce cases, understanding the value of retirement assets, including pensions, is crucial as these can be significant components of the marital estate. A CDFA utilizes various methodologies and financial tools to present the current worth of future pension benefits, which often require complex calculations depending on the plan's specifics, including type, payout options, and other variables.

This function supports both parties in making informed decisions regarding their financial futures in the divorce process, particularly in negotiations over asset division. Accurately valuing these assets is essential since pensions can provide long-term financial security, and their division can significantly impact the economic landscape post-divorce.