Divorce is never just a legal process—it’s emotional, practical, and can be financially overwhelming. In episode 35 of Divorce Diaries: Lessons from the Trenches, host Cary Jacobson, attorney and mediator with Jacobson Family Law, focuses on one of the most stressful aspects of divorce, finances. Cary is joined by Kathryn Holland, a Certified Divorce Financial Analyst (CDFA) and financial planner who specializes in helping women regain control of their financial futures during and after divorce.
Understanding the Role of a Certified Divorce Financial Analyst
A CDFA plays a crucial role in helping individuals navigate the complex financial landscape of divorce. This includes analyzing marital assets, exploring tax implications of asset division, and working with attorneys to create creative settlement solutions that preserve as much of the couple’s wealth as possible.
Unlike a court’s “adversarial system,” where a judge may simply split assets down the middle, a CDFA can help couples develop tailored financial solutions that take into account after-tax values, personal preferences, and long-term goals. This level of expertise ensures that both parties have a clear understanding of their financial picture before, during, and after divorce.
Empowering Financial Knowledge and Confidence
Many enter divorce feeling unprepared financially, often because they trusted their spouse to manage household money matters. A key theme of this episode is empowerment through education. Gaining a thorough understanding of financial accounts, assets, and future needs helps people step into their new lives with confidence.
Working with a CDFA involves gathering financial statements, learning how to access information, understanding marital versus non-marital assets, and addressing any gaps in financial knowledge. This education is particularly important for those who haven’t previously managed household finances—helping them make informed decisions about their future.
Post-Divorce Financial Planning
Divorce doesn’t end when the final decree is signed. There are critical financial steps to take afterward, such as updating estate plans, changing names if desired, separating credit accounts, and ensuring that retirement assets are properly divided.
A CDFA can also help coordinate the preparation of legal documents like QDROs (Qualified Domestic Relations Orders), ensure that accounts are separated correctly, and connect clients with trusted wealth managers when appropriate. This post-divorce planning is essential to establishing a secure financial foundation for the next phase of life.
Unique Considerations for Gray Divorce
The episode also highlights the growing trend of “gray divorce,” or divorces occurring later in life, typically after age 50. Retirement planning takes on new urgency in these cases, since there’s less time to recover financially.
Couples must consider changes in tax filing status, property tax implications, lifestyle adjustments, and how to make existing assets sustain two separate households. Proper financial planning during this stage is critical to maintaining stability and security in retirement.
Building a Path Toward Financial Independence
Ultimately, financial empowerment is an integral part of the healing process after divorce. By understanding their financial picture, individuals can reduce fear, make informed decisions, and create a stable path forward. Whether through professional support, personal education, or both, this knowledge helps transform a period of upheaval into an opportunity for growth.
Learn More
To hear the full conversation and get more practical advice on navigating divorce, listen to this episode and others at jacobsonfamilylaw.com/podcast.
For legal guidance and support, visit jacobsonfamilylaw.com.
For specialized financial planning during and after divorce, visit Kathryn Holland’s website at coveryourassetsdivorce.com.