How to Choose Your Divorce Financial Expert

When you hear the phrase “divorce professionals,” you probably think of divorce attorneys. That makes sense, since the great majority of professionals who help people with divorce are lawyers. But while divorce is a legal process, it has many other aspects as well. For a divorce that is complicated or involves significant assets, it might be necessary to have a team of divorce professionals in place, including a financial expert.

Most people are understandably concerned about their financial security in the aftermath of a divorce. A financial expert can help you understand what financial resources you have, what financial resources you need, the tax impacts of your decisions in divorce, and much more.

How Can a Financial Expert Help With Divorce?

Depending on your situation, there are different types of financial professionals who can render invaluable service in your divorce. They include:

• Certified Professional Accountants (CPAs): A CPA is an accountant who has passed a rigorous exam and met strict state licensing requirements. CPAs often address valuation and tax issues in divorce, and organize financial information so it is easier for a divorce attorney and client to understand.
• Forensic Accountants: Forensic accountants are accountants who have special training to investigate potential fraud or financial misconduct, including a spouse hiding assets in a divorce.
• Business Valuation Specialists: If one or both spouses is a business owner, that business may be one of the most significant assets in the marriage. If only one spouse is involved in the business, that spouse probably knows much more about what the business is worth. A business valuation expert can help the parties understand the current value of this asset as well as the income it is likely to generate in the future.
• Certified Divorce Financial Planners (CDFA): A CDFA is a financial planner who has received special training in financial issues of divorce. Particularly if your spouse was the partner in the marriage who managed the finances, a CDFA can help you understand what your current financial situation is and what resources you will need to thrive during and after divorce.

While most divorce attorneys have some financial knowledge, it is the role of these financial experts to take a “deep dive” into your marital finances. They can provide your attorney with detailed financial information that allows your attorney to better advise you regarding the terms of a divorce settlement. You wouldn’t make a major purchase without researching the value of the asset you were planning to buy. Similarly, you shouldn’t enter into a divorce settlement without a full understanding of what you have, what you need, what you’re getting, and what you’re giving up. An expert in financial matters can ensure that you have the facts you need to make a sound decision—and that your attorney knows what to fight for.

If your divorce doesn’t settle, a financial expert is even more important. While only a relatively small percentage of divorces go to trial, high net worth divorces are among the most likely to be contested. In a divorce trial where financial issues are in dispute, a credible financial expert can persuade a judge to rule in one party’s favor. In many cases, the difference the right expert can make in the outcome of a case more than offsets any fees the expert charges for their services.

Which leads us back to the title of this blog post: since a financial expert can be so critical to a divorce case, how do you choose one?

Finding a Divorce Financial Expert

Fortunately, you don’t have to figure out whether you need a financial expert on your own, and you don’t have to find one by yourself, either. Your divorce attorney is the equivalent of the “general contractor” for your divorce, and knows what other service providers may be necessary. He can help you identify whether your case calls for the services of a financial professional; not every case does. If a financial expert’s help is warranted, your attorney will know what kind of expert is called for, and who can best meet your needs.

This is one of the less-talked-about reasons to work with an attorney who concentrates exclusively in family law, and who is also a litigator. An attorney who regularly litigates complex and high-asset divorce cases is in the best position to have access to the right financial experts for a particular matter. If you choose the right divorce attorney, you will be able to rely on them to help you put the right team in place for your divorce.

Divorce trials involving disputed financial issues often become “battles of the experts,” in which both sides put forth expert testimony to advance their positions. It’s not enough to have an expert on your side; you need one whose knowledge and credentials are unassailable, and who can communicate their ideas effectively and persuasively.

To learn more about choosing a financial expert for your divorce, or about financial issues in divorce, contact Strickler, Platnick & Hatfield to schedule a consultation.