What’s The Difference Between A CDFA® And A Forensic Accountant?

For financially complicated divorce cases, your first reaction may be to call in the services of a forensic accountant. While the skillset of a forensic accountant and that of a CDFA® overlap somewhat, there are some significant differences.

As indicated in the table below, forensic accountants and CDFA®s both perform forensic activities. But the biggest difference is that forensic accounts look backward into the finances to determine what took place, while a CDFA® projects into the future. Additionally, forensic accountants provide business valuations, but CDFA®s provide education, handholding, and explanation of proposed settlement agreements for the client.

In summary, a CDFA® is a skilled professional who has

  • Graduated from the Institute for Divorce Financial Analysts™ · 

  • Has received specialized training in the financial issues of divorce

  • Is required to fulfill continuing education requirements

  • Will take more of a blended and forward-looking approach, attempting to take the known assets that are in place and craft an optimal strategy to protect a client from any downside while maximizing the upside investment and allocation strategy for the future.

Terrie Austin