Divorce & Finances: How a Chartered Financial Divorce Specialist Can Help You Protect Your Future
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Dividing assets, managing debts, and planning for financial security—separation is overwhelming, especially when it comes to money. And while family lawyers (like me!) can help with the legal and financial side of things, there are those trickier financial decisions in divorce that can require specialized expertise. That’s where a Chartered Financial Divorce Specialist (CFDS) comes in.
In this episode of That Was So Real, I sat down with Sharon Clark, CFDS, to break down how separating couples in British Columbia can make informed financial choices. Whether you’re considering divorce or in the middle of one, this guide will help you understand what a CFDS does, how they can help you avoid costly mistakes, and why financial planning for your future should be a key part of your divorce process.
What is a Chartered Financial Divorce Specialist (CFDS)?
A CFDS is a financial professional with specialized training in divorce-related financial matters. While an accountant or financial planner may be able to help with taxes, budgeting, and investments, a CFDS focuses specifically on how separation impacts finances in both the short and long term.
Here’s what a CFDS does:
Helps separating spouses understand their full financial picture.
Provides financial projections to show how different settlement options will impact future financial security.
Assesses income sources, including business income, to determine true financial standing.
Helps separate joint finances in a fair and strategic way.
Works alongside lawyers, mediators, and other professionals to streamline financial negotiations.
One of the biggest benefits of working with a CFDS in British Columbia is that they serve as a neutral party. Unlike lawyers who represent one spouse, a CFDS can be hired by one party or work with both parties to ensure they fully understand their financial situation, making it easier to negotiate fair and informed settlements.
The Financial Disclosure Process: What Surprises People the Most
One of the first steps in any divorce is financial disclosure—the process of gathering and exchanging all relevant financial documents. This includes tax returns, bank statements, investment accounts, pensions, and debts.
For many people, this process can be eye-opening—and not always in a good way.
Sharon shared that one of the most common things she sees is one spouse being completely unaware of their full financial situation. It’s not unusual for someone to discover:
Debts they didn’t know existed—such as credit cards, loans, or lines of credit they never had access to
Undisclosed savings accounts or investment funds that weren’t openly discussed in the relationship
A business that generates more income than reported on tax returns
In some cases, this lack of financial transparency is unintentional, simply because one spouse managed the finances while the other handled other responsibilities in the relationship. In other cases, there may be financial abuse, where one spouse deliberately controls access to money to maintain power over the other.
A CFDS plays a critical role in this stage by ensuring that both parties have the information they need to make informed financial decisions, rather than making agreements based on incomplete or misleading information.
The Hidden Risk of Prioritizing the Family Home Over Investments
For many people going through a divorce, keeping the family home is their top priority. There’s often an emotional attachment, a desire for stability—especially when children are involved—or simply the fear of change.
However, as Sharon explained in our conversation, making the decision to give up everything else just to keep the home can be a huge financial mistake.
Why keeping the house at all costs isn’t always the best move:
Liquidity matters – A home is a valuable asset, but it’s not liquid. You can’t use it to pay bills or cover unexpected expenses. If all your money is tied up in home equity, you may struggle with day-to-day financial needs.
Retirement security is crucial – Giving up pensions and investments in exchange for the home may provide stability now, but what happens when it’s time to retire? Many people regret not securing assets that will provide long-term financial security.
Mortgage qualification isn’t guaranteed – Just because a spouse gets the house in the divorce doesn’t mean they can afford to keep it. Banks may not approve them for a mortgage on their own, particularly if their income is based on spousal or child support.
Ongoing costs add up – Property taxes, maintenance, and potential market downturns all impact the financial viability of keeping a home long-term.
A CFDS can run financial projections to show how different settlement options will impact financial stability over time, helping clients see the big picture rather than just the short-term emotional appeal of keeping the house.
Forensic Accounting: Uncovering Hidden Assets and Income
If one spouse owns a business or has more control over finances, there’s often concern that income is being hidden or underreported. This is where forensic accounting comes into play.
A CFDS can help uncover:
Personal expenses being claimed as business expenses to reduce reported income
Money being held in retained earnings rather than taken as income
Undisclosed assets such as investment properties, offshore accounts, or secret savings
Lifestyle discrepancies, where reported income doesn’t match spending habits
Sharon pointed out that forensic accounting isn’t always about catching someone doing something wrong—sometimes, it simply provides clarity and reassurance that all financial information is accurate and complete.
Business Owners and Divorce: Why True Income Matters
For business owners, divorce can be particularly complicated because income isn’t always straightforward. Unlike salaried employees, business owners have more control over how they report and distribute income.
A CFDS can analyze:
Business financials to determine true income for support calculations
Whether a business should be considered a marital asset and how it should be valued
If retained earnings should be factored into financial settlements
Without this type of analysis, one spouse may end up with far less than they’re entitled to, or support payments may be based on inaccurate financial figures.
Final Thoughts: Do You Need a CFDS?
If you’re going through a divorce and feeling uncertain about your financial future, working with a Chartered Financial Divorce Specialist can provide the clarity and confidence you need to make smart financial decisions.
A CFDS can help:
Ensure full financial transparency
Analyze long-term financial impacts of settlement decisions
Provide guidance on asset division, business income, and forensic accounting
Work alongside your lawyer to create a financial plan that protects your future
If you’d like to learn more, listen to my full conversation with Sharon Clark on That Was So Real, Episode 4 or visit Sharon’s website - Centric Financial to explore how a CFDS can help in your divorce.
As always, before you go, I have one very important question for you? Are you ready to hit reset?
If so, tune into the episode and don’t forget to hit that subscribe button so you don’t miss out on the upcoming episodes.
Let’s build a life that aligns with your true goals and values. Can’t wait to see you next time!
