Divorce impacts every part of your life — especially your finances. At Divorce Smart, we combine divorce mediation services with expert financial guidance as Certified Divorce Financial Analysts® (CDFA®). Whether you're facing an uncontested divorce or a more complex split, following these 10 essential steps to financially prepare for your divorce can help protect your financial future.
1. Inventory Your Financial Life
Before filing for divorce, gather all financial documents: tax returns, pay stubs, investment accounts, retirement plans, real estate deeds, and debt statements. A complete financial inventory lays the foundation for a smooth and equitable divorce process.
2. Evaluate Marital vs. Non-Marital Assets
Understanding the difference between marital and non-marital property is critical. Knowing which assets are shared and which are considered separate can help you negotiate a fair settlement during mediation.
3. Create a Post-Divorce Budget
Divorce often means adjusting to a single income. Mapping out your expected income and expenses now will prepare you for the financial realities ahead and guide better decision-making during your divorce.
4. Protect Your Credit
Joint debts can complicate your financial future. Monitor your credit report, pay down shared debts if possible, and avoid taking on new financial obligations while your divorce is pending.
5. Open Separate Financial Accounts
Establishing your own checking, savings, and credit card accounts is a crucial step toward building financial independence after divorce.
6. Work with a CDFA® for Financial Clarity
At Divorce Smart, we offer Certified Divorce Financial Analyst® services to help you fully understand the long-term financial impacts of divorce. From property division to retirement planning, we guide you toward smart, informed decisions.
7. Update Legal and Financial Documents
After divorce, update your will, healthcare directives, powers of attorney, and beneficiary designations on retirement accounts and life insurance policies to reflect your new circumstances.
8. Plan for Health Insurance Changes
If you were previously covered under your spouse’s insurance, securing new health coverage is essential. Explore options like COBRA, private insurance, or Minnesota’s MNsure marketplace.
9. Think Beyond Sentiment When Dividing Property
While keeping the family home might seem important emotionally, the ongoing financial burden may outweigh the benefits. Evaluate property division decisions carefully with your long-term financial health in mind.
10. Stay Focused on Long-Term Financial Health
Prioritize a settlement that supports your long-term security rather than making decisions based on short-term emotions. A well-planned financial strategy will help you rebuild with confidence after divorce.
At Divorce Smart, we offer both divorce mediation and divorce financial analysis to help you move forward with clarity, confidence, and peace of mind. Our unique combination of mediation experience and CDFA® expertise ensures that every client receives personalized, financially sound solutions for a smarter, more affordable divorce.
Ready to prepare for your financial future?
Schedule a Consultation with Divorce Smart Today!
Check the background of your financial professional on FINRA's BrokerCheck. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
