Divorce can be a pretty daunting and stressful experience. And while things are difficult for all parties involved, women are subjected to a slew of different challenges that make it difficult to pick up the pieces and start anew.
This is why it’s especially concerning that 95% of women do not utilize a financial advisor for divorce. Considering that women experiencing divorce are undergoing a monumental change in their lives, it would be best to utilize any and all the help that is available to them.
Now, we understand if you are still on the fence when it comes to hiring a financial advisor for divorce. This is why we thought it would be useful to put together a comprehensive guide explaining why women need financial advisors when they get divorced.
Hopefully, this article will be enough to convince you so you can be in the best position to get back on your feet after this difficult chapter of your life has concluded.
Why You Need a Financial Advisor for Divorce
With 41% of first marriages ending in divorce as of 2025, understanding the financial complexities of separation has never been more critical. A specialized financial advisor for divorce brings expertise that goes far beyond traditional financial planning.
They help you navigate tax implications, asset division, and long-term financial security that will impact the rest of your life.
Understanding Complex Asset Division
Divorce can be rather overwhelming. This can lead to a slew of different mistakes that will end up costing you in the long run.
This is especially true when it comes to marital assets. You can avoid all of this by hiring a financial advisor for divorce.
Your advisor will help you uncover and identify financial assets that you need to get a fair share of during the divorce. Remember that you are entitled to everything including the marital home, the engagement and wedding rings, fine jewelry, and retirement accounts.
A Certified Divorce Financial Analyst (CDFA) differs significantly from traditional financial planners. These professionals undergo specialized training to understand the unique challenges of asset division, including the tax ramifications of different settlement options.
For instance, while assets may appear equal on paper, one spouse could end up with significantly more after-tax value depending on how assets are divided.
Navigating 2025 Tax Implications
The Tax Cuts and Jobs Act fundamentally changed how divorce settlements are taxed. For divorces finalized after December 31, 2018, alimony payments are no longer tax-deductible for the payer or taxable income for the recipient.
This permanent change significantly impacts settlement negotiations and requires expert guidance to understand fully.
A financial advisor for divorce will help you understand these critical tax implications, including how Qualified Domestic Relations Orders (QDROs) affect retirement account divisions. They also explain capital gains implications on property transfers, and the difference between alimony and child support taxation.
Without this expertise, you could face unexpected tax bills or miss opportunities for tax-advantaged settlements.
Rebuilding Your Financial Foundation
Divorce brings a slew of different changes with it. This is most evident when it comes to how you’ll be approaching your finances.
You’ll need to rethink everything as paying your bills, managing your investments, buying insurance, and budgeting your spendings will all be affected by the divorce. This can be rather difficult to do on your own especially if you have no prior experience managing your own finances.
Luckily, financial advisors have the knowledge and expertise that will help you navigate and manage your personal finances. They’ll help you establish new banking relationships, understand how your credit score may be affected, and create systems for managing household expenses as a single person.
In fact, it’s not out of the realm of possibility that you may actually be better off financially after the divorce with proper planning.
Protecting Against Hidden Assets
Unfortunately, asset concealment occurs in many divorce proceedings. Studies show that in approximately 30% of divorce cases involving significant assets, one spouse attempts to hide money or property. A financial advisor for divorce can work with forensic accountants to identify discrepancies in financial records, unusual account activity, or assets that may have been transferred to hide them from the divorce proceedings.
This protection is particularly important for women who may not have been involved in day-to-day financial management during the marriage. Your advisor can help ensure you receive your fair share of marital property by conducting thorough asset searches and analysis.
Long-Term Retirement Planning Considerations
Divorce significantly impacts retirement planning, especially for women who statistically live longer than men and may have had interrupted careers. The division of retirement accounts through QDROs, Social Security benefit considerations, and the need to rebuild retirement savings on a single income requires specialized expertise.
A financial advisor for divorce will help you understand how different settlement options affect your long-term financial security. They can model various scenarios to show you how different asset divisions will impact your ability to maintain your lifestyle in retirement, helping you make informed decisions about which assets to prioritize in settlement negotiations.
Achieving New Financial Goals Post-Divorce
While getting back on your feet is important, you’ll also want to look beyond this and start dreaming bigger. Aside from helping you manage your finances, financial advisors can also help you set and achieve new financial goals. Whether it be paying off your debt, purchasing a new home, or planning for retirement, there’s no goal too big or too small that a financial advisor can’t help you with.
Post-divorce financial planning often involves rebuilding credit, establishing an emergency fund, and potentially returning to work after years away from the workforce. Your advisor can help create a comprehensive financial plan that addresses both immediate needs and long-term objectives, including estate planning updates, insurance needs analysis, and investment strategy adjustments.
Understanding CDFA Certification
When choosing a financial advisor for divorce, look specifically for the Certified Divorce Financial Analyst (CDFA) designation. Over 5,000 professionals in the US and Canada have earned this certification through the Institute for Divorce Financial Analysts. CDFA professionals must have three to five years of relevant experience and complete intensive training covering divorce law, asset division, taxation, and financial planning strategies specific to divorce.
These professionals undergo continuing education requirements and must maintain ethical standards specifically related to divorce financial analysis. They understand the emotional complexities of divorce while providing objective financial analysis during a highly stressful time.
When to Hire a Financial Advisor for Divorce
You should consider hiring a financial advisor for divorce if you have significant assets that aren’t easily liquidated, if one spouse has controlled the finances during the marriage, or if there are complex retirement accounts or business interests involved. Additionally, if you’re seeking spousal support or if there are children involved requiring support calculations, professional guidance becomes essential.
The cost of hiring a financial advisor for divorce typically ranges from $120 to $250 per hour, but this investment often pays for itself through better settlement outcomes and avoiding costly financial mistakes. Many advisors offer initial consultations to help you understand if their services would benefit your situation.
The Collaborative Divorce Approach
Many financial advisors for divorce work as part of collaborative divorce teams, working alongside attorneys, mental health professionals, and other specialists to achieve the best outcomes for families. This approach can be more cost-effective and less adversarial than traditional litigation while ensuring all aspects of the divorce are handled professionally.
The collaborative approach emphasizes open communication and creative problem-solving, often leading to settlements that work better for both parties long-term. Your financial advisor plays a crucial role in this process by providing neutral financial analysis and helping both parties understand the long-term implications of various settlement options.
Conclusion
As you can see, there are multitudes of different benefits attached to hiring an independent financial consultant for divorce. From navigating complex tax changes to ensuring equitable asset division and planning for your financial future, a specialized financial advisor for divorce provides invaluable expertise during one of life’s most challenging transitions.
Trust us when we say that this will make things infinitely easier for you and will be a great help when it comes to helping you get back on your feet and build the future that you want. The expertise of a CDFA professional can mean the difference between a settlement that leaves you financially vulnerable and one that sets you up for long-term success.
Here at Calamita Wealth Management, we understand that each client’s financial journey is different. This is why our team has been trained to handle everything from divorce to even losing a job. You can rest assured that our financial advisors for divorce, retirement, and investments are well equipped to help you out with any and all of your financial concerns. If you’re looking for a financial advisor in Charlotte, North Carolina reach out to us today!
