Professional Responsibilites Flashcards
Actuary
A person whose work is to calculate statistical risks, premiums, and life expectancies for insurance and pension plans
Pension Valuator
An individual who is qualified to calculate the value of defined benefit plans
Why does the CDFA recommend not working with couples pursing pro se divorce?
Potential liability
What concerns would arise if your existing wealth manage clients were to divorce?
Conflict of interest
Tenants of IDFA Code of Ethics
- integrity
- competence
- objectivity
- fairness
- confidentiality
- professionalism
- scope
- compliance
- unauthorized practice of law
- support
Telling a client what they “should” ask for or receive can be perceived as?
Unauthorized practice of law
Can some collaborative practice groups ban providing wealth management or investment services after the divorce is final?
Yes
Strategist
Supporting role of a CDFA
- CDFA can be used in the litigation process, before the case is even filed
- prepare analysis for lawyers so they know what the financial implications are for different divorce settlements
- helps lawyers negotiate the most advantageous settlement for clients
Financial Expert
Supporting role of CDFA
- CDFA’s role in divorce process
- may be called upon to review and give input on investment data, retirement plans, benefit programs, business records, tax returns, and all other financial data
Data Collector
Supporting role of CDFA
- help client and attorney collect data to prepare the Financial Affidavit and pre- and post- divorce budget
Evidence Presenter
Supporting Role of CDFA
- CDFA is asked to present evidence to show the financial impact of the different settlement options or information related to financial, tax, investment, or retirement plan issues
- sessions may take place in meetings with client, client and attorney, client spouses and attorneys in mediation sessions, arbitration hearings, or in court at the trial
Client Expectations Manager
Supporting role of CDFA
- one of most important roles
- gives clients with unrealistic expectations a reality check
- CDFA needs to be sensitive as divorce is emotional and there will be some issues that fall outside the bounds of financial logic like sentimental value or on principle
Accountant
A person who is qualified to keep, audit, and inspect the financial records of individuals or business concerns and prepares financial and tax reports
Attorney
A person who is legally qualified and licensed to represent a person in a legal matter, such as a transaction or lawsuit
Divorce
The legal proceeding by which a marriage is legally terminated.
It may be contested or uncontested
Contested
One party denies the allegation or wants to keep the marriage in place
Any case where the judge must decide one or more issues that are not agreed to by the parties. All cases are considered tested until all issues have been agreed to
Mediator
An individual who has been trained to assist people in coming to an agreement, especially one that reconciles differences between disputants
What do attorneys not use to determine how the law is likely to be applied to a case?
They don’t use local mediation reports.
They use case law, state litigation and local customs
Providing client with financial information on a different settlement proposal
A CDFA is allowed to provide client with this information
CDFA should not advise clients or recommend which settlement a client should choose
Inappropriate question for a CDFA to ask a client
How much spousal support is needed so you do not have to go back to work
Ok to ask what age they’d like to retire since it would impact an assessment of long term financial needs
Honesty
Not a standard in the code of ethics
