KristiLyn Wilkinson's CDFA® credential helps address unique financial challenges clients face before, during and after divorce
KristiLyn Wilkinson, a senior lecturer in the School of Financial Planning at the Texas Tech College of Health and Human Sciences, has expanded her professional credentials to include specialized divorce financial planning, responding to an increasing number of clients facing complex financial challenges during and after divorce.
"I started to notice problematic financial situations that my clients were dealing with after the divorce that could have been prevented if certain things had been done differently during the divorce process," Wilkinson said. "I realized that I needed more specialized training in some of the nuances of divorce to properly serve my clients."
The certification process requires candidates to have a bachelor's degree with three years of on-the-job experience or five years of relevant experience without a degree. Candidates must also pass the CDFA® certification exam.
Wilkinson's financial counseling background has proven particularly valuable when working with clients at different stages of divorce.
"All my clients who are currently seeking divorce financial planning are women, and their needs vary greatly before, during, and after divorce," Wilkinson said. "I have some individuals who are considering divorce and want to know if they can even afford to live on their own."
This work includes analyzing potential budgets, housing costs, and possible child support or alimony scenarios to help clients make informed decisions.
For those in the midst of divorce proceedings, Wilkinson's CFP® expertise becomes crucial when examining asset division options.
"My financial planning skillset is utilized during the divorce process when we are looking at the division of assets and their different tax implications as we are dividing retirement accounts, investments, property, and pensions," Wilkinson said.
The CDFA® certification addresses a growing demographic trend in divorce statistics. While overall divorce rates have been decreasing since about 1980, one age group has bucked this trend.
"The past few decades have seen an increase in what has been termed 'gray divorce,' or divorce among those who are 50 and older," Wilkinson said. "Individuals who divorce later in life often have larger investment portfolios and have acquired more assets together, so dividing the assets may be more complicated and require specialized planning by financial planners."
This specialized knowledge extends to addressing the disproportionate financial impact that divorce can have on women, especially those with children.
"Women are more likely to end up in poverty after divorce, especially if children are involved, than men are," Wilkinson said.
Her work also assists clients who have experienced financial abuse, including one 45-year-old woman who "never managed any household money and didn't have any credit in her name" and is now building credit and managing household finances for the first time.
Beyond private practice, Wilkinson incorporates these real-world insights into her teaching at Texas Tech, preparing future financial professionals to understand divorce's substantial financial implications.
"Whether divorce rates are currently increasing or decreasing, divorce is always happening, and what happens during a few days, weeks, or months of litigation can impact someone for the rest of their life," Wilkinson said. "Real world examples and scenarios are some of the most valuable insights I can offer to my students."