Financial Planning for Divorce — Complete Checklist

Divorce is one of the largest financial events most people will ever experience. It restructures everything — income, expenses, assets, debts, taxes, insurance, and retirement plans. The people who come through it in the best financial shape aren't necessarily the ones with the most money. They're the ones who prepared.

Estimate the financial impact of your situation with the Divorce Financial Calculator.

Before You File: The Financial Preparation Checklist

Phase 1 — Gather Documents (Weeks 1–2)

Document	Why You Need It
Last 3 years of tax returns	Establishes income history
Last 6 months of pay stubs	Current income verification
Bank statements (all accounts, 12 months)	Shows spending patterns and hidden transfers
Investment account statements	Retirement, brokerage, 529 plans
Mortgage statement and home value estimate	For equity calculations
Auto loan and title documents	Vehicle ownership and debt
Credit card statements (12 months)	Marital debt documentation
Insurance policies (health, life, auto, home)	Coverage and beneficiary review
Social Security statements	Spousal benefit eligibility
Business financial records (if applicable)	For business valuation

Make copies of everything. Store them outside the marital home — a safe deposit box in your name only, a trusted family member's house, or a secure cloud drive.

Phase 2 — Establish Your Financial Identity (Weeks 2–4)

Open individual accounts. If you don't have a bank account and credit card solely in your name, open them now. You'll need them post-divorce regardless of the outcome.

Check your credit report. Pull all three bureau reports (annualcreditreport.com). Look for accounts you didn't know about and ensure your credit history is accurately reflected.

Understand your household cash flow. List every source of income and every monthly expense. This becomes the basis for your post-divorce budget and any spousal/child support arguments.

Document valuable assets. Photograph or video-record valuable items in the home (jewelry, art, electronics, furniture). Note serial numbers and estimated values.

Phase 3 — Protect Yourself Financially (Ongoing)

Don't make sudden financial moves. In most states, once divorce is filed, an automatic temporary restraining order (ATRO) prevents both spouses from dissipating assets. Even before filing, moving large sums or closing joint accounts can look bad to a judge.

Monitor joint accounts. Don't empty them, but watch for unusual withdrawals from your spouse. Document anything suspicious.

Set aside an emergency fund. Legal fees, deposits on a new apartment, and other unexpected costs add up fast. Having 3–6 months of personal expenses set aside is ideal.

The Biggest Financial Mistakes in Divorce

Mistake	Why It's Costly
Fighting over the house emotionally	The house may be a liability, not an asset — especially if you can't afford the mortgage alone
Ignoring tax implications	Assets aren't equal after taxes — a $100K 401(k) is worth less than $100K in cash
Not accounting for inflation on support	$3,000/month in alimony buys less every year
Hiding assets	Courts punish this severely — forensic accountants will find hidden accounts
Rushing to settle	Accepting a bad deal to "get it over with" costs years of financial recovery
Not updating beneficiaries	Ex-spouses can inherit life insurance and retirement accounts if you forget to update

Post-Divorce Financial Checklist

Once the divorce is finalized, work through these within 30 days:

Update beneficiaries on 401(k), IRA, life insurance, and bank accounts
Change your tax filing status (you can file as single or head of household starting the year the divorce is final)
Update your will, power of attorney, and healthcare directive
Reassess your insurance needs (health, auto, home/renters)
Create a new household budget based on your single-income reality
Adjust tax withholding (W-4) to reflect your new filing status
If receiving alimony, plan for the income (it's not taxable for divorces finalized after 2018)
Transfer retirement funds via QDRO (if applicable)

For understanding how assets split in your state, see How Assets Are Divided in Divorce. For retirement account questions, read Divorce and Retirement Accounts. And for tax implications, check Tax Filing Status After Divorce.