Divorce Financial Planning
Compassionate financial guidance to help you move forward with confidence
Guiding You Through the Financial Aspects of Divorce
A Steady Partner in the Middle of Major Change
Divorce is emotionally draining, and it can be hard to make clear financial decisions when everything feels uncertain. We walk alongside you through the financial side of the process so you don’t have to navigate it alone. Our role is to help you avoid costly mistakes, understand your options, and see how different settlement choices affect your long-term security. We separate emotion from the numbers, while still respecting how personal these decisions are. The goal is to emerge from divorce with a realistic, workable plan for your next chapter.
Understanding the Marital Balance Sheet
Getting a Clear View of What You Own, What You Owe, and What’s Marital
A fair divorce outcome starts with an accurate picture of the financial landscape. We help you list all assets and debts — from bank accounts, investments, and retirement plans to the home, business interests, and loans — and classify what is marital versus separate property where applicable. This “marital balance sheet” becomes the foundation for settlement discussions so nothing important is overlooked. We also highlight which assets may be more or less valuable after tax, so you’re not trading something that looks equal on paper but isn’t equal in reality. With clarity on the numbers, you can negotiate from a more informed and confident position.
Developing a Settlement Strategy
Evaluating Scenarios So You Can Choose What’s Equitable and Sustainable
Dividing assets in divorce is about more than simply splitting things down the middle. We analyze different settlement options to show how they play out over time, taking into account taxes, investment growth, support payments, and changing expenses. A key focus is liquidity and affordability — for example, whether keeping the house is realistic once you consider mortgage, taxes, and maintenance. We help you compare outcomes such as more retirement assets versus more cash, or higher support now versus more assets later. By seeing the long-term impact of each scenario, you gain a clearer sense of what is truly equitable for your financial future.
Retirement Assets, QDROs, and Your New Budget
Protecting Long-Term Savings and Building a Post-Divorce Plan
Retirement accounts are often among the largest marital assets and must be handled carefully. We coordinate with your attorney on Qualified Domestic Relations Orders (QDROs) to divide 401(k)s, pensions, and similar plans correctly, and we help you reposition the assets you receive to support your own retirement goals. Wherever possible, we encourage avoiding cashing out retirement funds to prevent unnecessary taxes and penalties. Once the settlement is clearer, we help you design a new budget that reflects your income, expenses, and any support payments, so you know what life looks like on the other side. This becomes the basis for rebuilding savings, updating your retirement plan, and making confident decisions about housing, work, and lifestyle.
Property, Debt, and Tax Considerations
Making Practical Decisions About the House, Loans, and Your Tax Picture
Key decisions like whether to keep or sell the marital home can have long-term consequences for your cash flow and stress level. We help you evaluate if staying in the home is affordable and wise, or whether selling and splitting proceeds better supports both spouses’ stability. Debt division is also critical — we review mortgages, credit cards, and other loans to ensure they’re allocated and retitled appropriately, and that joint accounts are properly separated. On the tax side, we explain how your filing status will change, how support may be treated under current law, and what to expect in your first post-divorce tax year. With this insight, you can enter your new life with fewer surprises and more control.
Common Questions About Divorce Financial Planning
Your Settlement, Budget, and Long-Term Security Questions, Answered
What does a divorce financial planner do?
A divorce-focused financial planner helps you understand the financial implications of different settlement options and build a plan for life after the divorce. We gather and organize your financial data, model “what if” scenarios, and explain how decisions about assets, support, and the home affect your long-term outlook. We work alongside your attorney, focusing on the financial details while they handle legal strategy. Our aim is to be your advocate on the numbers, so you feel informed rather than overwhelmed.
How should I prepare financially before or during a divorce?
Preparation starts with gathering documents — statements for bank and investment accounts, retirement plans, loans, tax returns, insurance policies, and information on the home or any businesses. We then help you understand your current spending, which is important for support discussions and planning your post-divorce lifestyle. It’s also wise to begin building your own financial identity, such as separate accounts and a clear understanding of your credit, under guidance that respects legal requirements. The more organized you are, the better equipped you’ll be to negotiate a fair settlement and move forward.
How do I know if a divorce settlement is fair financially?
A settlement can look fair on paper but feel very different once you project it into the future. We analyze proposals by modeling income, expenses, taxes, investment growth, and support over time to see whether your needs are likely to be met. We also compare the quality of assets — for example, pre-tax retirement dollars versus after-tax cash — to ensure you’re not trading into a weaker position unknowingly. While “fair” can be subjective, this analysis provides a grounded, objective view to guide your decisions.
What should I know about dividing retirement accounts in a divorce?
Splitting retirement accounts typically requires careful legal and administrative steps, including QDROs for many employer plans. Done correctly, transfers can often occur without immediate taxes or penalties, allowing assets to continue growing for retirement in your own name. We help you coordinate this process, then design an investment approach that matches your new timeline and risk tolerance. Understanding these mechanics early helps you protect your long-term security during settlement negotiations.
How will my budget and lifestyle change after divorce?
After divorce, most people experience changes in income, expenses, or both, and it’s common for budgets to feel tighter for a time. We create a detailed post-divorce budget that incorporates housing, insurance, debt payments, support received or paid, and new priorities. This exercise helps you see where adjustments might be needed and whether your settlement supports a sustainable lifestyle. With a clear plan, you can make informed decisions about work, housing, and savings instead of guessing.
