Did you know women, on average, see their financial status drop by 41% after divorce?
It’s a harsh reality and a much bigger hit than men typically face. The good news? Knowing these challenges means you can take steps to protect your financial future. With a clear plan & us by your side, you can take control. You’re stronger than the stats, and with the right planning, you’ll beat them. 💪💫
Check out our Step-By-Step Guide to help you feel prepared and confident →
Step 1: Get Organized
Getting organized is one of the most important (and often most daunting) steps to take in divorce. We promise you, it’s worth it.
Gather all of your financial documents. Our list below isn’t necessarily every single thing you need, but it’s a great start to organizing yourself →
- Tax returns (3+ years)
- Pay stubs, W-2s, 1009s, and other employment verifications
- Statements – Bank, credit card, retirement, investment accounts
- Mortgage and/or loan documents
- Insurance policies (health, life, car, home, disability)
- List of all assets (what you own) and debts (what you owe)
Know where you stand financially. This means check your credit report and review it to make sure it’s accurate!💡 READ our 7 Tips To Protect Your Credit for more detailed info!
And make sure you understand your budget. Track income and expenses, identify needs and obligations, plan for emergency savings. 💡 READ- Creating Your Post-Divorce Budget for can’t miss details.
Open individual accounts. If you don’t already have them, open your own checking and savings accounts. Get a credit card in your name. Remove your spouse as an authorized user, and check that credit report often! 💡 Get more tips HERE 👉 Divorce and Your Credit
How to do it? Create a folder (digital or physical) for all documents. Use a budgeting app to track your income and expenses. Work with a professional like a Certified Divorce Financial Advisor.
Step 2: Build a Financial Team
Find your pros to support you through all of this. How? → Search our site for your perfect fit. Ask for referrals from trusted friends or professionals. Interview to make sure it’s a good fit – and ask all your questions so you feel confident.
- Divorce lawyer – Find one who aligns with your goals and fits your personality. Don’t Miss→ 7 Tips For Finding Your Divorce Lawyer where we break it down for you 👏
- Certified Divorce Financial Advisor. They can be your secret weapon during divorce. With their expertise in tax law, asset division, and financial planning, they bring clarity to the chaos. They’ll help you understand the true value of your marital assets (and spot any tax traps), walk you through settlement options, and even help with your required financial disclosures.
- Therapist or counselor – They support your mental health and emotional well-being through stressful money conversations and planning sessions.
Step 3: Protect Your Assets
Protect yourself by protecting your assets. Think proactively and take steps to safeguard your future with these steps →
- Close or Freeze joint accounts 👉 Check out Dividing Bank Accounts in Divorce
- Secure valuables (documents, heirlooms, personal items)
- Update beneficiaries (insurance, retirement accounts, and wills)
Step 4: Assess Your Needs During Divorce
Now that you’re organized, it’s time to craft your financial game plan. Take a deep dive into your financial situation to get a clear picture of what’s coming in, what’s going out, and what you truly need to make things work. This step is all about setting yourself up for success—by understanding your numbers, you’ll be able to confidently identify what you need and start planning for your next chapter.
- Negotiate spousal support, if applicable to you based on your situation. (*Child support is often based on state guidelines and not eligible for negotiation.)
- Understand which of your assets are considered marital vs separate property. Know the laws of property division in your state (ie community property or equitable distribution.) Get clear on how to divide your retirements and get guidance on QDROs and other pieces of this process.
- Focus on long-term goals. Focus on sustainable decisions (ie keeping the house or selling and dividing profit) and be clear about your financial priorities and goals. Everyone’s is different and there’s no shame in being 100% clear about what you need or value. Get guidance or support from a CDFA to help.
Step 5: Plan for Post-Divorce Finances
Managing your finances post-divorce can feel daunting, but building a budget is a powerful way to regain control and set yourself up for success.💪💫
- Create a new budget
- Rebuild your savings
- Invest in your future
- Monitor your credit
💡 READ the full breakdown here 6Tips For Creating Your Post-Divorce Budget 💡
Step 6: Stay Powerful
Remember, this is tough stuff—but you’ve got this! We believe in you and your ability to handle it all, one step at a time. As you tackle the financial side of your divorce, here are a few final tips to keep in mind to help you stay focused and empowered on your journey.
📣 Education is Power 📣 Learn as much as you can. Read, watch, and listen with us! If there’s something we haven’t talked about, tell us HERE and we’ll get on it ASAP.
📣 Lean on Your Support System 📣 Reach out to friends, family, or professionals for guidance and support.
📣 It’s OK to ask for help 📣 No one expects you to know everything. Give yourself grace ♥️
Celebrate the small wins, take it one step at a time. You’ve got this. And we’ve got you.