Financial planning is crucial, but within a divorce, it can reshape your financial life in ways that are both immediate and long-term. Whether you’re managing a substantial settlement, reestablishing financial independence, or planning for your next chapter, what you do in the months following a divorce matters.
At Whiting, Ross, Abel & Campbell, we regularly work with clients who are not in crisis, but who want to avoid costly mistakes, protect what they’ve built, and set a foundation for long-term security. Here’s what to consider as you navigate financial planning after divorce, and how to make smart, informed choices that serve you now and in the future.
One of the most important steps after a divorce is reassessing your financial picture from top to bottom. The goal isn’t to strip everything down to the essentials, but is instead to create a clear, workable structure for managing wealth on your own terms.
Start with the basics:
Even clients with robust financial backgrounds can find post-divorce logistics surprisingly complex. Overlapping accounts, deferred compensation packages, or complicated asset transfers can lead to missed details if not reviewed carefully. That’s where professionals, including certified financial planners and knowledgeable family law attorneys, can bring peace of mind.
Our team helps you protect your assets, plan wisely, and take confident steps toward long-term financial peace.
Many clients walk away from divorce with a meaningful financial award: a buyout for their share of the marital home, a portion of a retirement account, or a negotiated spousal support structure. While that’s a critical step toward financial stability, it also comes with new responsibilities.
If you’ve never managed a portfolio independently, or if this is the first time you’ve had a seven-figure amount in cash or assets in your name alone, you need a plan. Not just to preserve value, but to ensure it works for your future.
A certified financial planner, for example, can help you:
For example, if you received a share of your former spouse’s retirement account through a QDRO (Qualified Domestic Relations Order), rolling it into your own IRA might shield you from tax penalties. But if you make a withdrawal instead, you could be hit with taxes that reduce your net benefit significantly.
Many people approach divorce as a short-term financial hurdle. But what often matters more are the decisions you make in years two, three, and beyond. Whether you’ve returned to the workforce, sold shared assets, or are maintaining your lifestyle on a single income, your long-term plans should reflect your new position. Thoughtful financial planning after divorce helps ensure those decisions support lasting stability and growth.
Post-divorce, retirement planning deserves a fresh look. Even if you received part of a former spouse’s retirement account, that may not be enough, especially if you’re accustomed to a certain lifestyle. Contributing to your own retirement vehicles, adjusting target dates, or working with a planner to project income needs are all wise steps.
Data from the U.S. Government Accountability Office shows that household income drops by about 41% for women and 23% for men after divorce. That makes it all the more important to be proactive if you intend to maintain your quality of life.
If your estate plan still names your ex-spouse, or if you never had one at all, now is the time to put protections in place. That might include:
For high-net-worth individuals or families with generational wealth, this isn’t just about paperwork. It’s about preserving control, minimizing tax exposure, and protecting your legacy from avoidable risk.
Divorce changes your exposure, too. You may no longer be covered under a spouse’s employer health plan, or you might now be solely responsible for life and disability coverage to protect your children or dependents. Insurance gaps can be especially risky for clients with substantial assets or business holdings, so a review with your advisor or planner is essential.
Even financially sophisticated individuals can misstep when emotions are high. A few pitfalls to be aware of:
Overlooking professional advice. Even if you’ve managed finances before, post-divorce planning has unique legal and strategic considerations.
At Whiting, Ross, Abel & Campbell, we work closely with professionals who specialize in post-divorce financial transitions. We understand that our clients aren’t starting from scratch; they’re seeking clarity, protection, and an informed path forward.
You may be adjusting to life with sole control over a family business, a new set of investment responsibilities, or managing a large financial award. In all these situations, smart planning is less about restriction and more about freedom—the freedom to make decisions confidently, and to move forward without second-guessing whether something critical was overlooked.
If you’re navigating the financial side of divorce and want to make sure your next chapter is built on solid ground, we’re here to help. Schedule a consultation to explore how our team (and our extended network of trusted financial experts) can support your goals.
The above is not meant to be legal advice, and every case is different. Feel free to reach out to us at Whiting, Ross, Abel & Campbell, LLP if you have any questions. Information contained in this content and website should not be relied on as legal advice. You should consult an attorney for advice on your specific situation.
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Start by gathering detailed records of all assets, debts, and accounts, and work with a qualified attorney and financial advisor to ensure a fair and accurate division.
People often underestimate future expenses, overlook tax implications, or rush into decisions without a clear financial plan. Skipping professional advice can lead to costly and avoidable outcomes.
Check your credit report for errors, separate joint accounts, and make consistent on-time payments to establish a solid credit history in your name. Opening a secured credit card or small line of credit can also help reestablish your score.
When one spouse hides money or property during divorce, it’s more than unfair—it’s illegal. In California, both partners must fully disclose assets, debts, and income, but that doesn’t mean everyone plays by the rules. From hidden bank accounts to concealed business interests, finding hidden assets is often the key to protecting your financial future.
When substance abuse enters a custody case, everything changes. In California, children’s safety comes first, and drug or alcohol use can tip the scales in visitation, parenting rights, and even financial outcomes. These cases are complex, emotional, and often unpredictable—making it critical to understand how the courts view addiction and custody.
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