We Don’t Just Look At The Now, We Look At Your Future!
Financial decisions made during the separation and divorce process can affect the rest of your life and the lifestyle you lead. We help you understand your financial options, assess the long-term financial impact of any financial settlement and provide you with the financial information you need to make informed decisions. We ensure that important financial issues, including tax implications, future tax liabilities and inflation are addressed.
Our Services
Provide Assistance To Lawyers And/Or Mediators
Our goal is to help you and your lawyer and/or mediator reach a fair and workable financial solution, which is acceptable to both divorcing parties. We assist in the design of financial settlement proposal(s) and keep your lawyer fully informed on financial matters, by providing executive summaries which highlight key financial issues and the effects of different projection scenarios. We can be hired directly by lawyers to provide support on specific financial issues.
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Our work on specific financial issues may include:
Forensic accounting-type work to identify and locate undisclosed, hidden or depleted assets.
Analysis of whether one party has lived above his/her/their means.
How inheritance funds have been used.
Forensic Accounting-Type Work
In cases where there are indications that family assets have been undisclosed, hidden, depleted, or incorrectly reported by the other divorcing party, the financial stakes can be high. We can help by providing the necessary financial analysis and documentation to support your lawyer in pursuing the matter through legal process, with the goal of achieving a full and accurate accounting of family assets. We can be hired by either divorcing party or their lawyers.
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There are a number of ways that forensic accounting-type work can help support your case:
Identify areas where key documents are missing from the other party’s disclosure or the existing disclosure is insufficient.
Provide relevant financial information and evidentiary basis to assist your lawyer with filing a request to the court for additional diclosure from the other party.
Locate undisclosed or hidden assets.
Identify where family assets have been depleted by the other party.
Assess whether the other party is spending above their means (this could include a lifestyle spending exercise comparing spending before/after separation).
Determine whether income declared by the other party is accurate, to ensure that spousal and child support payments are calculated correctly.
Identify and investigate financial discrepancies in the other party’s personal/business finances.
This type of work usually involves a detailed review and analysis of a large amount of financial information and documentation. As a result, our work in this area is often highly labour intensive and can be expensive. It would only be advisable in cases where high value assets are involved.
Please note that we are not qualified Forensic Accountants. In complex cases, which require a higher level of forensic expertise, a qualified forensic accountant may be required to perform specialized work.
Provide Accurate Financial Analysis
Providing full and accurate financial disclosure is an essential element of the separation and divorce process. We can assist you and your lawyer in gathering all relevant financial documents and data. We use this information to prepare accurate financial analysis required to complete financial statements and net family property statements, as per BC Family Law financial disclosure requirements, for review and use by your family lawyer.
Our work also provides you and your lawyer with an objective evaluation of the division of family assets and calculation of the final equalization payment, taking into consideration all relevant financial and tax implications.
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Our analysis includes assets, liabilities (debts) and income/expenses of each party, together with a range of child and spousal support payments, based on provincial and federal legislation and guidelines, for further consideration by your lawyer.
Pre And Post Separation Financial Planning
Without the help of a CFDS, couples could divide their family assets without any idea of potential financial trouble that may lie ahead. We prepare financial projections, using a specialized software program, which accurately show the long-term effect of any given divorce settlement. They take into consideration all financial issues, including inflation and changing tax consequences, as well as the effects of a number of different scenarios, which are tailored to your particular financial goals, needs and concerns.
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Our reports are client friendly and include charts and graphs to illustrate clearly the financial effect of scenarios and potential settlements.
Provide Insight and Liaise
Pensions and family businesses frequently make up a substantial portion of the value of family assets acquired during the marriage, and it is important that they are valued correctly. We provide insight on this matter and liaise with lawyers and other professionals with specialized skills, such as actuaries and business appraisers.
We review current insurance information and, if necessary, look at other insurance options, to ensure there is sufficient coverage in place to protect support income, in the event of the death or disability of the paying spouse.
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In complex situations, we would seek the professional assistance of specialized tax advisors and/or forensic accountants.
Educate And Provide Guidance
The financial issues involved in separation and divorce can be varied and complex. We can help you understand these issues, guide you through the process and ensure you fully appreciate the options and implications of the often-complicated financial decisions you need to make.
We can assist you with developing realistic and effective budgets, to help you adjust to your new financial reality.
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How we can help you:
We walk you through the process and identify what it all means (terminology, names of forms etc.).
We explain tax and/or financial consequences of giving up or retaining certain assets.
We provide budget management during the difficult period of transition.
We ensure that expenses such as life insurance, health insurance and cost of living increases are taken into consideration when agreeing on a final financial settlement.
What Is A Chartered Financial Divorce Specialist (CFDS)?
A Chartered Financial Divorce Specialist is a financial professional who has completed specialized training in financial matters related to separation and divorce, through the Academy of Financial Divorce Specialists (AFDS). A CFDS must follow a strict Code of Ethics, monitored by the AFDS and other licencing authorities and fulfill prescribed continuing educational requirements.
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A CFDS is a true neutral party and can be engaged at any time during the process of separation and divorce:
At the beginning to help collect financial data.
During deliberations to help analyze financial proposals.
Close to the end to evaluate scenarios and prepare future based projections to aid in the decision-making process.
Why Do You Need A CFDS?
Too often, what appears to be an equal and fair settlement proposal, can eventually leave one of the divorcing parties in deep financial distress, forcing them to spend savings and other assets just to survive. Working with a Chartered Financial Divorce Specialist helps you avoid making these costly mistakes. We provide the right financial expertise, choices and solutions to ensure you better understand your financial options and assess the long-term impact of any given divorce settlement.
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We are financial experts who work as part of your divorce team.
A CFDS works cohesively with, and provides support to, lawyers, mediators and other professionals, on financial issues relating to separation and divorce.
We ensure that important financial issues are addressed.
Financial issues can include: the division of family property; tax implications; short and long-term cash flow issues; education needs; retirement concerns; and potential financial consequences.
By providing assurance on the financial issues, we can reduce the liability of family lawyers.
Using a CFDS ensures that financial facts are analysed by an objective financial professional, with expertise in the financial and tax aspects of divorce and separation. While most family lawyers have an understanding of the financial issues involved in separation and divorce, they are not specifically trained in these areas. Our work can reduce the liability of family lawyers, relating to certain financial issues.
We provide lawyers with executive summaries.
We ensure that your lawyer is fully informed on important financial matters, by highlighting the effect of different projection scenarios and key financial issues.
We are a true neutral third party.
A CFDS can be hired directly by a lawyer, mediator or one/both divorcing parties.
We consider current and future tax aspects. Why is this important?
After-tax financial projections can tell a different story:
Tax is “embedded” in certain family assets i.e.; tax would be paid at a later date. Examples of “embedded” tax are:
Capital gains tax on a second home, which would be payable when the home is sold; and,
Income tax on future withdrawals from a pension plan, which becomes payable after the individual retires.
When family assets are split, the inherent future tax liability is passed on to the divorcing party who receives that asset.
A CFDS provides an accurate estimate of any inherent future tax liability and takes this into consideration in their evaluation of the division of family property and preparation of financial projections.
If tax aspects are not considered, the division of family property may not be “fair and equitable”.
We prepare financial projections to show the long-term financial effect of different scenarios, based on your individual needs and goals.
Financial projections can give you the financial information necessary to help you answer key questions, for example:
Can I afford to keep the family home?
Can I afford to retire?
When can I retire?
How much child and spousal support will I receive and will it be sufficient to survive?
Will we be able to afford post secondary education for our children?
We can help you better assess any offer on the table.
By projecting the financial impact of any potential settlement over future years, we provide the financial information necessary to help you to decide if a settlement is acceptable.
Our work provides key financial information to key people.
The individual going through divorce, who has to make the decisions.
The lawyer arguing the case.
The judge, who is able to use the information to make a fair decision.
Financial analysis conducted early in the divorce process can save time and money.
In the early stage of the divorce process, both parties spend a great deal of time trying to get a clear understanding of the financial impact of the separation. The faster you understand the financial status and consequences of choices being considered, the less it will cost in legal bills. We take care of the financial issues, allowing your lawyer to concentrate on the legal issues.
We help you develop and manage household budgets.
We can help you develop a realistic monthly budget during the financial analysis process. Expenses such as life insurance, health insurance and cost of living increases are taken into consideration when agreeing on a final financial settlement.
Other issues addressed by a CFDS:
We look at other issues including:
Ensuring high worth assets, such as pensions and businesses are correctly valued.
Determining whether there is sufficient insurance in place to protect spousal/child support, in the event of the death or disability of the paying spouse.
Confirming that income earned by the other party is accurately disclosed, to ensure child and spousal support is correctly calculated.
Take advantage of this expertise!
Divorce is a time of extreme emotional and financial upheaval. Choices you make today will shape your life for the future. A CFDS can help you make the right choices!
What We Can’t Do
• Give legal advice
• Give counselling advice
• Value pensions
• Value businesses
We can assist you to find and hire the relevant expert professionals you need.
FAQs
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Prior to our first meeting:
We are happy to provide a free 15–20-minute phone call with you, to outline our intake process and answer any preliminary questions you may have.
If you then wish to proceed, we will send you a package which includes:
Parts A and B of our Family Law Intake Form, which consists of a questionnaire and checklist of required information and documents (to be brought to our first meeting). Both parts of the Intake Form are available in either an online or fillable pdf format (password protected), whichever is your preference.
Our engagement letter which explains the scope of our work, together with a retainer agreement, for your review prior to our meeting.
Useful information for separated and/or divorcing individuals.
At our first meeting:
We go through our engagement letter with you and explain the scope of our work.
We walk you through the process, using plain language, to outline what to expect and explain some of the terminology.
We work with you to identify your individual concerns, fears and financial goals and provide assistance with such matters as:
Procuring required documents necessary to proceed.
Pre-marriage assets (owned prior to marriage).
Asset values at the date of separation.
We discuss our hourly rates and billing.
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Professional fees are based on hours required to conclude the assignment.
Fees depend on the complexity of the circumstances, the range and types of financial assets, and whether there is a need for specialist valuations.
In cases where we are working with both divorcing parties, our fees are normally split between the couple, rather than each paying someone to work on the financial details.
The longer the process is, the more costly it becomes. We try to identify any potential financial stumbling blocks early on, so that we can work on finding solutions to make the process as smooth and efficient as possible.
Forensic accounting-type work tends to be labour intensive and can be expensive. Where there are high value assets/amounts involved, the financial benefits can outweigh the costs.
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Billing is monthly, based on the time spent and hourly rate.
A retainer is required, in advance of services performed (to be paid by the end of the initial meeting).
We provide a full analysis of time spent and billing amounts at the end of the assignment.
Please note: we currently accept cheques and interac e-transfers.
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The security and privacy of the documents and information you provide is important to us.
Security:
All data provided by you through our online Family Law Intake Form is encrypted end to end and is not stored on any outside platform.
We use Sync.com for secure cloud storage, file sharing and document collaboration. Sync has a high level of privacy, protection and security features, in consideration of the sensitive nature of the information and documents involved in a family law case. Some of the salient features of Sync are as follows:
Client-side end-to-end encryption to protect data from unauthorized access in the cloud;
Certification with the most widely accepted security and privacy regulations worldwide, including Canada;
Compliant with Personal Information Protection and Electronic Documents Act (PIPEDA);
System and organization controls (SOC) 2 Type 1 (which relates to the evaluation of an organization’s cybersecurity controls); and,
Advanced share controls.
Privacy:
Centric Financial CPA is bound by professional confidentiality. We may not disclose any of your confidential information without your written consent, unless required to do so by law.
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No, the role of a CFDS is to deal with the financial issues of a separation or divorce only. We are not trained as lawyers.
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No, a CFDS provides information and specialized reports to give you the tools to make better choices from your options, which 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.
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The value of using a CFDS can be summarized as follows:
A CFDS is able to show the projected consequences of various options, giving clients a reality check to assist in bringing resolution to the stumbling blocks that holds back cases from closing.
A CFDS provides the assurance that all financial facts are analysed by an objective financial professional, with specific training in this area. Our work can reduce the liability of family lawyers, relating to certain financial issues.
A full financial reporting package and/or an executive summary of key facts and findings, is presented to family lawyers, to ensure they have all the necessary financial information and documentation to complete their final due diligence on the file.
With the CFDS working on the financial matters, it allows the lawyer to focus on all other legal settlement issues.
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As a true neutral party, a CFDS can be retained by one or both divorcing parties.
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 financial situation.
Couples with substantial assets can be more likely to seek the assistance of an expert in financial divorce matters.