Accredited Domestic Partnership Advisor (ADPA)?

Unmarried couples, that is, those in a domestic partnership, do not always enjoy many of the protections offered to married couples, which can introduce added uncertainty when dealing with financial and tax issues. In this situation, a professional equipped with an Accredited Domestic Partnership Advisor (ADPA) designation can offer much-needed expertise. An ADPA has specialized training to help unmarried partners ensure the protection of both of their interests in the event the partnership ends in death or divorce.

Another smart way to to preempt problems related to a domestic partnership ending is to consult a financial advisor. Get matched with one today.

Considerations for Domestic Partners

Laws related to taxes, retirement, wealth transfer and other such concerns can look much different for those in non-traditional partnerships. For instance, while federal law protects married same-sex couples in many ways, unions of unmarried partners are governed by laws that vary significantly by state. Some states treat unmarried same-sex partners just like married spouses, while others grant them no rights at all.

State laws may require domestic partners to file joint tax returns, which can push a couple into a higher tax bracket. Federal law also provides domestic partners with no rights to a deceased partner’s Social Security benefits or other benefits that they would otherwise be entitled to if married.

ADPA Issuing Body

The ADPA was begun in 2010 by the College for Financial Planning (CFP), which is now part of Kaplan Financial. It was then relaunched in the fall of 2021, though the College for Financial Planning says it is now no longer accepting new applications for the certification. The college says its ADPA certification is the “only designation of its kind and features up-to-date content regarding the distinct planning differences for domestic partners compared to legally married couples.”

The College for Financial Planning also oversees a number of other wealth management and financial planning certificate programs. The most widely recognized and popular is the Certified Financial Planner™ (CFP®) certificate. Many of those who receive ADPA certificates already have designations as CFPs®.

ADPA Certification Requirements

The College for Financial Planning is not currently accepting new applications for an ADPA. However, in the past, applicants must already have a preexisting certification as a financial professional to apply. The list of acceptable prerequisites included the CFP®, Certified Public Accountant, Chartered Financial Analyst, Chartered Retirement Planning Counselor and Accredited Wealth Management Advisor, alongside several more.

Applicants also had to complete a course of study. The online curriculum focuses on teaching students how domestic partners can approach taxes, retirement planning, investing, estate planning, health insurance, debts, child custody, partner benefits, behavioral finance and more.

The course has the option of either live online classes or on-demand classes. Students have 120 days from the time they receive study materials to complete the program and pass a final exam, though 60-day extensions are available for a fee. A passing score on the final exam, which is 50 questions, is 70%.

Alongside completing the coursework and passing the exam, ADPA hopefuls must agree to follow a code of ethics. Additionally, every two years after receiving the certificate, ADPA holders must complete 16 hours of continuing education. The College for Financial Planning charges a $100 fee to renew designations for two years.

ADPA Services for Clients

An ADPA is trained to help domestic partners navigate financial and legal issues that apply specifically to unmarried couples. The curriculum covers tax planning, retirement strategies, investing, estate planning, health insurance, debt management, child custody, partner benefits and behavioral finance.

Tax implications can be significant for unmarried partners. Depending on the state, domestic partners may need to file joint state returns while filing separately at the federal level. An ADPA can help couples understand how different filing strategies affect their overall tax burden.

Estate planning is another area where unmarried couples face unique challenges. Without automatic protections like unlimited spousal transfers and default inheritance rights, domestic partners need deliberate planning to make sure assets pass to the surviving partner. An ADPA can help coordinate wills, trusts, beneficiary designations, powers of attorney and healthcare proxies.

Retirement planning also requires specialized attention. Federal law does not extend Social Security survivor benefits to unmarried partners. Additionally, employer-sponsored plans may not recognize a domestic partner as a default beneficiary. An ADPA can help couples evaluate these gaps and recommend strategies to compensate.

The ADPA is most useful for couples whose partnership falls into a legal gray area. Same-sex couples who are not legally married, cohabiting partners with shared assets and blended households with children from prior relationships are all situations where standard planning assumptions may not apply.

How Much Does an ADPA Cost?

Most ADPA holders already work as financial advisors, accountants, attorneys or wealth planners. Their fee structures reflect those underlying practices rather than the ADPA designation itself. A CFP® with an ADPA may charge a retainer or a fee based on a percentage of assets under management. An attorney may bill hourly, whereas CPA may charge per engagement.

What a client pays depends on the advisor’s primary credential, their firm and the scope of services needed. A full financial plan covering taxes, estate documents, retirement projections and insurance will cost more than guidance on a single issue, like beneficiary designations.

Domestic partnership planning can involve more complexity than comparable work for married couples. Separate wills, individually structured trusts, customized beneficiary arrangements and state-specific legal documents each add time and cost to the engagement.

If the advisor is a registered investment adviser, clients can review their Form ADV Part 2 through the SEC’s Investment Adviser Public Disclosure database ¹ . This filing describes compensation methods, services and conflicts of interest. ADPAs who practice as attorneys or CPAs may not have a Form ADV on file.

Before hiring an ADPA, clients may want to ask whether the advisor has worked with other domestic partners in similar situations. It’s also important to find out how the advisor will structure their fees for the requested services, whether the engagement covers both partners or just one and what happens if relevant state laws change. These questions can help a couple evaluate the advisor’s experience and determine whether the cost is reasonable.

ADPA Certificate Holder Jobs

ADPA certificate holders are usually already working in financial services. They may be financial advisors, accountants, attorneys, wealth planners, bank trust officers or retirement advisors. Often, they hold more advanced licenses as attorneys, accountants or other advisors.

The ADPA certificate is an optional designation that does not give holders any special powers or privileges. It’s considered a mid-level certificate. Generally, it’s suitable for those who are past the beginnings of their careers as financial advisors and looking to make themselves more marketable and knowledgeable.

Comparable Certifications

There aren’t any other certifications that, like the ADPA, focus specifically on the financial advice needs of unmarried couples. However, there are some designations for financial advisors who specialize in advising conventional married couples.

One example is the Certified Divorce Financial Analyst (CDFA). The Institute for Divorce Financial Analysts awards this designation to people who have bachelor’s degree, three years of work experience and complete a course of study and pass an exam. The CDFA courses and exam cost anywhere from $1,600 to $1875, depending on the specific program.

Another is the Chartered Financial Divorce Specialist (CFDS). This is a Canadian certificate that the Academy of Divorce Financial Specialists offers for those with a preexisting financial planning designation. To get a CDFS, it’s necessary to pay $1,500 ($1,700 for a hard copy of course materials), complete a three-day educational curriculum, pass a set of tests and prepare a case study.

Bottom Line

Unmarried couples face special obstacles when planning for taxes, wealth transfer, healthcare and other issues also familiar to conventional couples. The state laws that govern what happens when domestic partners experience divorce or death of one of the partners vary widely. An advisor with an ADPA certificate has received special training to address the unique the needs of domestic partners.

Tips for Same-Sex Couples

• Couples who are trying to prepare for future taxes, wealth transfer and related issues can get expert help navigating these matters from an experienced financial advisor. SmartAsset’s free tool matches you with vetted financial advisors who serve your area. You can then have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Here are a few financial items that gay and lesbian newlyweds might want to add somewhere on their to-do list.

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