Frequently Asked Questions

 

What does a Chartered Financial Divorce Specialist do?

A CFDS professional provides a much-needed service to those separating and divorcing individuals at a difficult time in their lives when they require competent financial advice for their long-term well-being. They assist clients in understanding their financial situation and the process they are going through and help facilitate goal-setting for financial security. They provide clients with a reality check that could eliminate costly mistakes going forward. A CFDS provides information as to the implications of the choices being considered while evaluating current and future tax costs, inflation, growth, and cash flow both today and for years ahead.

Why do I need a CFDS when I already have a lawyer?

A family is always faced with dividing assets and money issues when going through a marital breakdown. Having an objective third party specially trained in divorce financial matters offers insight to avoid making uninformed costly choices.  Family lawyers are trained in legal issues, not financial or tax areas and they often prefer not to deal with this important area in great depth.  The team approach provides the best solutions possible for a stronger financial future, and a fairer outcome for both parties.

Would it cost more by using a lawyer and CFDS?

The faster you understand the financial status and the consequences of choices being considered, the less it will cost in legal bills.  Couples often get stuck on a particular issue that may not be worth battling over. Working with a CFDS on your financial issues brings specialized knowledge and perspective to your matter. The CFDS work is often done offline from the lawyer, and at a lower professional rate, resulting in overall less cost to the clients. In many cases, the CFDS works together with your lawyer(s) on your matter.

 What type of clients uses the services of a CFDS?

A CFDS can be retained by one party in the separation, while the other party may or may not seek the advice of a separate CFDS. Although there is no one type, more women than men seem to use these services, perhaps due to a gap in salary or understanding of the family’s financial situation and its investment assets.  Certainly, those with substantial assets should seek out the assistance of an expert in financial divorce matters.

Couples using the Collaborative Family Law approach to separation and divorce often use the CFDS in the role of the Financial Professional neutral party in their team. Here, the core legwork of collecting, assembling, and analyzing the family’s financial affairs is done once and presented to the Collaborative Team for discussion and settlement. The CFDS brings specialized family financial training and knowledge to the Collaborative process and helps find fair and workable financial settlement options which meet the needs and goals of both spouses. Other professionals such as family and children specialists also contribute their unique expertise to the process.

How much does the average case cost?

Our Financial Professional fees are based on the hours required to conclude the assignment. This always depends on the situation: the range of and types of financial assets, the need for specialist valuations, and the complexity of the specific circumstances.  The range is as low as a few hundred dollars to several thousand if a complex case. In Collaborative Family Law process cases, these fees are normally split between the couple, rather than each paying someone to work on the financial details.  When both parties can readily accept the advice of their legal and financial professionals, and where both parties have a strong commitment to resolve issues and make necessary compromises, the entire separation and divorce process can be concluded in as little as four to six months.  Of course, the longer this process gets dragged out, the more costly it can become.

How does a CFDS become qualified?

Financial professionals must have an existing financial designation (for example financial planner or professional accountant) as a core criterion before they are accepted to take the CFDS program. They undertake the program consisting of learning the theory, ethics, practice standards, tax rules, and background details in this area of specialized practice, as well as working practically on several case studies to apply the special Canadian rules to various situations.  Upon successful completion of an intense case study exam, they receive the CFDS designation.

Is there any upgrading required for a CFDS?

Currently, it is necessary to have 15 hours of annual education credits showing evidence of keeping up to date on changes in the financial field that could impact legal, separation, and divorce areas. Often their other professional credentials require more hours per year.

Is a lawyer able to take the CFDS course?

It is only possible for a lawyer to take the CFDS course if they also hold a financial designation.

Will a CFDS do a complete divorce without a lawyer?

No, the role of a CFDS is to deal with the financial areas of a separation or divorce only as they are not trained as lawyers. It is always recommended that you use a lawyer to deal with the legal aspects of your case. You have many legal rights and obligations as you navigate your separation agreement, as well as many procedures, filings, and rules to follow in the process. Some may try to navigate the separation process by themselves, however obtaining independent legal advice regarding your final separation agreement is required by law prior to obtaining a divorce decree.

Will using a CFDS mean getting a bigger settlement or more support?

No, a CFDS provides information and specialized reports to give you the tools to make better choices from your options that could result in a more satisfactory settlement for everyone involved. You will have a better understanding of the issues and be certain of the equity and fairness of the proposed settlement in your circumstances. The CFDS does not make decisions for you.

As a lawyer, how does using a CFDS bring any value to me, my clients, or my work?

A CFDS is able to show the projected consequences of various options giving the clients a reality check that will assist in bringing resolution to the stumbling blocks that hold back cases from closing. A CFDS also reduces a lawyer’s liability in that all financial facts are being analyzed by an objective third party with training specifically in this area. A full financial reporting package is presented to ensure the lawyer has all the information and documentation available for their final due diligence on the file. With the CFDS working on the financial issues in the case off-line from the lawyer reduces the overall cost to the client and allows the lawyer to focus on all other settlement legal issues in the case.

What type of communication would occur between a CFDS and a lawyer if working together on a case?

Confidential written and verbal correspondence regarding the financial aspects of the client cases, including specialized reports with projections that consider tax aspects, inflation, growth earnings, cash flow, etc. If required, a CFDS may be an expert witness. In the context of a Collaborative Family Law process, the CFDS is neutral to both parties. They normally would work offline from the lawyers on gathering, assessing, and drafting financial elements of the case. The CFDS would attend Collaborative Team meetings, participate in planning and debriefing each meeting and follow up on financial matters. Accordingly, all reports and discussions are shared jointly with the Collaborative team and clients. A full reporting package is presented at the conclusion, providing both lawyers with all information necessary to conduct and document their due diligence on their respective files.