On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Advisor Jenn Caruso to discuss how to financially prepare for a divorce and how a Certified Divorce Financial Analyst (CDFA) can help. 

Here are some key takeaways from their conversation: 

- As a CDFA herself, Jenn explains that CDFAs can help clients understand the complex nuances of financial impact before, during and after a divorce. 

- Before the divorce process actually begins, it is best to get organized, locate important documents and assess one’s financial situation. 

- Jenn emphasizes the importance of cash flow planning and modeling different settlement options to ensure long-term financial stability.

- It is helpful to have an objective party involved like a CDFA, as they can mitigate the risk of making emotional decisions which can potentially lead to mistakes. 

- After the divorce, Jenn suggests reviewing and updating estate documents, insurance policies and financial plans.

- Alimony is no longer tax-deductible or considered taxable income for divorces finalized after 2019, except in California where certain exceptions apply. 

- A frequent mistake people make is wanting to keep the family home purely because of sentimental reasons, when it may not be financially sustainable.