What to Consider When You’re Considering Divorce: Understanding Your Financial Landscape: What You Must Know Before Considering Divorce
One of the biggest reasons people stay in unhappy or unsafe marriages isn’t love—it’s money. Financial fear is often the heaviest chain. But here’s the truth: you don’t need to know everything right now. You just need to start getting clear.
Before you even say the word divorce out loud, you deserve to understand your current financial picture—so you can move forward with confidence, not chaos. Below are the most important areas to review, why they matter, which expert can help, and what one small action you can take today looks like.
1. Know Your Income and Expenses
Why this matters:
You can’t make a plan for the future without knowing what’s coming in and what’s going out. Understanding your income and fixed vs. variable expenses helps you assess whether your current lifestyle is sustainable—and what might need to shift post-divorce.
Who can help:
A financial coach or certified divorce financial analyst (CDFA) can help you understand cash flow and create a budget for your next chapter.
Action step:
Download 3 months’ worth of bank statements and highlight all sources of income and recurring expenses. Add them into a simple spreadsheet or budget tracker.
2. Gather Your Financial Documents
Why this matters:
When divorce becomes real, you’ll need documentation to understand assets, debts, and financial history. Starting early puts you in a position of power, not panic.
Who can help:
A divorce attorney or paralegal can help you understand what documents will be important for legal proceedings.
Action step:
Start a secure digital folder (Google Drive, Dropbox, etc.) and upload or scan the following:
Tax returns (last 2 years)
Pay stubs
Credit card statements
Retirement account statements
Mortgage/lease documents
Insurance policies
Any shared debt records
3. Check Your Credit Report
Why this matters:
Divorce can impact your credit—especially if you share debt or if a partner has opened accounts in your name. Knowing your credit standing helps you prepare to apply for housing, open your own accounts, or refinance debt.
Who can help:
A credit counselor or financial advisor can help you understand your report and dispute any errors.
Action step:
Request a free copy of your credit report from AnnualCreditReport.com. Review it for accuracy and make note of anything unfamiliar.
4. Understand Shared and Individual Debt
Why this matters:
Not all debt is treated equally in divorce. Some debt that’s technically in your spouse’s name may still be considered marital debt, and vice versa.
Who can help:
A divorce attorney or financial planner can explain your state’s laws and help you determine who is responsible for what.
Action step:
Make a list of all known debts (student loans, credit cards, car payments, personal loans). Note whose name each is in and whether they were acquired during the marriage.
5. Identify Your Assets
Why this matters:
Property, savings, investments, and even heirlooms may be subject to division. Knowing what you own—and what matters most to you—can help you make strategic decisions.
Who can help:
A CDFA or estate planner can help you value and organize your assets.
Action step:
Create an inventory of all assets, including:
Bank accounts
Investment/retirement accounts
Real estate
Vehicles
Business ownership
Jewelry, art, collectibles
6. Think About Housing
Why this matters:
Where you’ll live after divorce is one of the biggest emotional and financial decisions. Will you stay in the marital home? Rent something new? Can you afford a mortgage alone?
Who can help:
A real estate agent who specializes in divorce or a mortgage broker can help assess your options.
Action step:
Research the cost of rent or mortgage payments in your area. Get pre-qualified (if you're thinking about buying) to understand your potential budget.
7. Learn About Alimony and Child Support
Why this matters:
If you’re financially dependent or a stay-at-home parent, spousal support or child support might be part of your post-divorce reality. Understanding the basics helps you plan and advocate for what you need.
Who can help:
A family law attorney or local legal aid office can walk you through your rights and state guidelines.
Action step:
Visit your state’s family court website to review how alimony and child support are calculated. Write down questions to ask a lawyer during a free consultation.
8. Plan for Health Insurance
Why this matters:
If you’re on your spouse’s health insurance, you’ll likely lose that coverage after divorce. You’ll need to explore alternatives like COBRA, the ACA marketplace, or employer options.
Who can help:
An insurance broker or divorce financial planner can help find the best plan for your budget and needs.
Action step:
Look into the cost of COBRA coverage vs. healthcare marketplace plans. Note your current providers and needs so you can compare plans.
9. Understand the Cost of Divorce Itself
Why this matters:
Legal fees, mediation, therapy, and new household expenses can add up quickly. Knowing what to expect helps you prepare—not panic.
Who can help:
A divorce attorney, mediator, or divorce coach can offer insight into the process and likely costs.
Action step:
Get 2–3 free consultations and ask about hourly rates, retainers, and flat-fee services. Ask whether sliding scale options are available.
10. Build Your Financial Support Team
Why this matters:
You don’t have to do this alone. A financial support team helps you make informed, empowered decisions—and reduces the overwhelm.
Who can help:
Your team might include:
A CDFA
A divorce attorney
A therapist
A real estate agent
A divorce coach
Action step:
Start with one free consultation. At Fresh Starts Registry, we offer referrals to vetted experts who understand the emotional and financial sides of starting over.
You don’t have to be “ready to leave” to start learning. Understanding your financial landscape isn’t about preparing to walk away tomorrow—it’s about standing on solid ground no matter what you decide. You deserve clarity, support, and stability, even in uncertainty. And the more you understand your finances, the more empowered your next steps—whatever they may be—will be.