Commonly Asked Questions - AFDS



Commonly Asked Questions

From the Media:

Why does one choose to become a Chartered Financial Divorce Specialist?

To better serve existing client and the clients of other financial professionals on a referral basis.

To provide a much needed service to those separating and divorcing individuals at a difficult time in their lives when they require competent financial advise for their long term well being.

What does a Chartered Financial Divorce Specialist do?

Assists clients in understanding their financial situation and the process they are going through and facilitates goal setting for financial security. He/she provides clients with a reality check that could eliminate costly mistakes going forward. An FDS provides information as to the implications of the choices being considered taking into account tax costs, inflation, growth and cash flow both today and for years ahead.

How does an CFDS become qualified?

Financial professionals must have an existing financial designation as a base criteria before they are accepted to take the FDS 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 work practically on a number of cases to apply that Canadian rules to various situations. Upon successful completion of an intense case study exam, they receive the FDS designation.

What type of clients use the services of an CFDS?

Although there is no one type, statistically more women than men seem to use these services, perhaps due to a gap in salary or understanding of investment assets. Certainly those with substantial assets seek out the assistance of an expert in financial divorce matters.

How much does the average case cost?

Depending on the community the average case would generally cost from just under a thousand dollars to over $2,500 and could even be as low as the financial divorce professional’s hourly rate if the client only needs a little information to help their understanding.

Is there any upgrading required for an FDS?

It is necessary to have 15 annual education credits showing evidence of keeping up to date on changes in the financial field that could impact on legal, separation and divorce areas.

Are there Financial Divorce Specialists across Canada?

The course is offered to financial planners in all provinces including Quebec and the territories. All members are listed on the website. There are as many currently taking the training as there are active members. It is anticipated that there will be continued growth of this professional category.

From Clients:

Why do I need an FDS when I already have a lawyer?

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

Would it cost more by using a lawyer and FDS?

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 or issues that are not really worth battling over.

What is the approximate cost?

It depends on the situation for the amount of hours involved and complexity of the specific circumstances. The range is as low as a few hundred dollars to several thousand if a complex case.

Will an FDS do the complete divorce without a lawyer?

No, the role of an FDS is to deal with the financial areas of a separation or divorce as they are not trained as lawyers. It is recommended that you use a lawyer to deal with the legal aspects of your case.

Will using an FDS mean getting a bigger settlement or more support?

No, an FDS 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.

From Lawyers:

How does using an FDS bring any value to me, my clients or my work?

An FDS 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 holds back cases from closing. An FDS 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.

What qualifications are necessary to become an FDS and maintain the designation?

An existing financial designation, successful completion of the FDS educational program, and continual upgrading by maintaining 15 education credits annually related to financial issues that could impact separation and divorce matters.

Is a lawyer able to take the FDS course?

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

What type of communication would occur between an FDS and a lawyer if working together or a case?

Written and verbal correspondence regarding the financial aspects of the client cases, including specialized reports with projections taking into account tax aspects, inflation, growth earnings, cash flow, etc. If required, an FDS may be an expert witness.

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