Divorce brings financial challenges. Learn how to navigate asset division, taxes, and long-term planning with guidance from Certified Divorce Financial Analysts^® at EP Wealth.

How Do I Protect Myself Financially In A Divorce?

Money is a common source of contention when couples divorce. A Certified Divorce Financial Analyst^® (CDFA^®) at EP Wealth can help clients navigate the financial complexities of separation to build a future after divorce. Connect online to find an advisor near you.

PRESERVING YOUR FINANCIAL FUTURE IN DIVORCE

Research confirms divorce is one of the most stressful events one can experience in a lifetime, second only to the death of a spouse. Finances can play a big part in that stress. Separating finances and starting over is no small task for couples whose lives have been intertwined for years.

Enlisting the guidance of a Certified Divorce Financial Analyst^® (CDFA^®) can likely ease the burden of trying to go it alone. These financial professionals can provide financial analysis and advice to attorneys and couples relating to the divorce.

CDFA^® professionals at EP Wealth Advisors know the process can be overwhelming. Our goal is to help you come out on the other side ready to embark on the next chapter of your life.

Ways a CFDA^® Can Guide You and Your Financial Future

A CDFA^® is often called a divorce financial planner, and they focus on the unique concerns of clients who are considering ending their marriage, or who have already filed for divorce. CDFA^® professionals offer custom financial planning that will focus on protecting you as you negotiate the terms of your divorce and as you move toward building a financial foundation as a single person.

Without professional advice, it’s more likely to concede to terms that may negatively impact your outcome and your future. Here are some of the ways a CDFA^® can help clients navigate the financial aspects of divorce.

Assess Your Financial Situation

Do you know how much is in your retirement plans or savings accounts? What about the grand total of your credit bills? Is your name on the mortgage or the car loan?

These are the important questions we ask to get a deeper understanding of your financial situation. Once we have an accurate accounting of your assets, expenses, and liabilities, your CDFA^® can begin building a picture of what your future can potentially look like after divorce.

Separate Finances

Detangling finances in divorce can be challenging, but it’s an essential step in working towards preventing your ex from acquiring more debt or negatively impacting your credit.

We guide you through the steps to establish new bank accounts, credit cards, and other financial resources to keep your income and debt separate going forward. Because you are liable for any debt incurred on joint credit cards, it’s best to do this as soon as possible, even before you file for divorce, if possible.

Divide Debts

When couples divorce, they also split their debts. Your CDFA^® identifies all debts and determines who is responsible for them. We distinguish between shared debts (like a mortgage or medical bills) and individual debts like student loans or balances for personal credit cards.

A CDFA^® may recommend paying off debt before finalizing divorce to cut these ties to your ex. However, this may not be possible for everyone. Our advisors can explore viable options to split and manage debt as efficiently as possible to minimize the impact on your finances.

Establish Credit

Next, we focus on repairing, building, or establishing credit as a single person. It often makes sense for the person who will retain the home or car to refinance loans in their own name.

If everything was in your spouse’s name, or you have joint debt with your spouse, like a car loan or mortgage, establishing or rebuilding good credit can take time. A CDFA^® provides practical action steps with the goal of establishing a healthy credit profile after your divorce.

Budget for a Single Lifestyle

As one household becomes two, you’ll need to set a realistic budget for your new life as a single person.

We consider all available income sources — including child support, alimony, and investments — and account for your expenses to build this budget. Our goal is to help you create a comfortable, post-divorce life considering your situation.

If it makes sense for you, we can also address retirement planning and investment management for the purpose of growing your assets and helping you save more for the future.

CDFA^®s Work With Your Divorce Attorney

CDFA^® professionals are available to work with your divorce attorneys throughout legal proceedings.

We provide clarity for your legal team on how the financial decisions you make today might affect your life after divorce. This includes guidance on the tax implications of real estate, retirement accounts, and other investments to help your attorney build a compelling case for a favorable settlement.

CDFA^® professionals also act as witnesses in mediation or court, as needed.

Divorce Financial Checklist

Taking these steps early on can help plan for financial security after divorce:

TIMELINE OF FINANCIAL DIVORCE PLANNING

Navigating the financial side of divorce requires careful timing. Here's a general timeline to help structure financial planning throughout the process:

Before Filing for Divorce:

Gather financial documents, including bank statements, tax returns, and investment records.
Open individual financial accounts and establish credit in your own name.
Assess joint debts and consider paying down high-interest balances.

During the Divorce Process:

Work with a CDFA^® to evaluate settlement proposals.
Review tax implications of asset division and support agreements.
Update beneficiaries on life insurance, retirement accounts, and estate plans.

After the Divorce is Finalized:

Adjust your budget to align with your post-divorce financial situation.
Reassess long-term financial goals, including retirement savings.
Monitor credit reports to confirm joint accounts have been closed or transferred.

CHECKLIST FOR FINANCIAL DOCUMENTATION NEEDED

Having organized financial records is crucial in preparing for negotiating a fair settlement. Consider compiling:

CHECKING STATE LAWS AND REQUIREMENTS

Divorce laws vary by state, which can significantly impact asset division, alimony, and child support. Key differences include:

Community Property vs. Equitable Distribution: Some states split marital assets 50/50, while others divide them based on fairness.
Spousal Support Guidelines: Alimony laws differ in terms of eligibility, duration, and calculation methods.
Tax Considerations: State tax codes influence how divorce settlements affect financial obligations.

Consulting legal and financial professionals familiar with state-specific rules can help you navigate these differences effectively.

COMMON FINANCIAL MISTAKES DURING DIVORCE

Working with a divorce financial planning professional can help prepare you on how to potentially avoid these common missteps and create a strategy that supports long-term stability.

Benefits of Working with a CDFA^®

BENEFITS OF WORKING WITH A CDFA®, Divorce is financially complex, and when emotions are high, fights about finances can lead to impulsive decisions. But CDFA® professionals aren’t just for couples that can’t seem to find common ground.

Even if your split is amicable, working with a CDFA^® can still make sense. It’s all too easy to make costly mistakes that may impact your ability to maintain your lifestyle and reach your financial goals after your divorce. With our help, you may be able to sidestep these common (and costly) divorce pitfalls.

A CDFA^® provides clarity by:

Offering detailed financial projections to evaluate settlement options.
Identifying potential tax consequences of asset division.
Collaborating with attorneys to build strong financial cases in mediation or court.

Connect with an EP Wealth CDFA^® to start building your divorce financial plan today.

LONG-TERM INVESTMENT CONSIDERATIONS POST-DIVORCE

Divorce often requires adjusting long-term investment strategies. Some key factors to evaluate include:

Asset Reallocation: Shifting from joint investments to individual portfolios.
Risk Tolerance Adjustments: Reviewing investment strategies to align with a new financial reality.
Retirement Planning Reassessment: Develop strategies to keep long-term savings goals on track despite changes in assets or income.

TAX IMPLICATIONS OF DIFFERENT SETTLEMENT OPTIONS

Divorce settlements can have lasting tax effects, depending on how assets are divided. Some key considerations include:

Alimony and Child Support: Tax laws affect whether these payments are deductible or taxable.
Retirement Account Withdrawals: Splitting retirement funds early can trigger penalties and tax liabilities.
Real Estate Transfers: Selling or transferring property post-divorce may result in capital gains taxes.

A professional CDFA^® can help you structure your settlement, striving to be as tax-efficient as possible.

START BUILDING YOUR FINANCIAL FUTURE TODAY

Divorce is a major life change, but with financial planning aligned with your goals, you can move forward with confidence. Whether you need help dividing assets, creating a post-divorce budget, or planning for the future, EP Wealth’s CDFA^® professionals are here to help. Contact us today to get started!

DISCLOSURES

Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. Content does not involve the rendering of personalized investment advice, nor is it intended to supplement professional individualized advice.
As the author of this piece, EP Wealth Advisors, LLC (“EPWA”) has tailored the messaging of this article to align with the categories, services, qualifications, capabilities and services that it offers and can service. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions with the appropriate professionals. EPWA makes no representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information presented. All expressions of opinion by the author are subject to change without notice.
EPWA is not in the business of providing legal services or advice. Always consult your tax advisor and/or attorney regarding your specific situation.
The Certified Divorce Financial Analyst^® (“CDFA^®”) that are employed by EP Wealth Advisors, LLC are not practicing attorney, accountant, tax professional, or legal expert. All assessments and subsequent recommendations limited and are performed exclusively under the guise of financial planning. An attorney must be retained in order to professional and accurately assess legal options and/or to provide counsel. We also recommend consulting a CPA, accountant, or tax professional.
Hiring or working with a CDFA^®professional does not guarantee or ensure that a client or prospective client will experience encouraging or favorable results.
Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment, tax, or legal advice nor is it intended to supplement professional individualized advice by the appropriate professional(s).
The decision to work with a CDFA^® professional will differ amongst clients and depend on individual circumstances of each respective client. There is no guarantee or warrantee that the services offered by EP Wealth Advisors, LLC and/or a CDFA^® will satisfy your divorce service needs. Services offered by other professionals may align more to your specific needs.
EP Wealth Advisors, LLC. is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability. Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions with the appropriate professionals. Content does not involve the rendering of personalized investment advice nor is it intended to supplement professional individualized advice. Please consult a professional Financial Advisor before applying any of the approaches or strategies made referenced directly or indirectly in this publication.
The information presented here is not intended to be regarded as a complete list of things to consider, including but not limited to, categories, services, or qualifications that a client or prospective client should contemplate when assessing or comparing Financial Advisors and/or Firms. As the author of this piece, EP Wealth Advisors, LLC (“EPWA”) has tailored the messaging of this article to align with the categories, services, qualifications, and capabilities that it offers. There is no guarantee or warrantee that the services offered by EPWA will satisfy your financial services requirements. Services offered by other advisors may be more suitable to your specific needs.
There is no guarantee nor is the intention of this article to establish any sense of assurance, that, if followed, the strategies referenced here will produce a positive or desired outcome. In fact, there is no guarantee or warranty that any of the steps detailed will enable the ability to achieve appropriate, successful, profitable or desired results. The possibility of unfavorable and unsuccessful results is not lessened by the information and strategies made referenced here.
Hiring and/or working with a qualified financial advisor or financial planner does not guarantee success and does not ensure that a client or prospective client will experience a higher level of performance, results or level of service. No guaranty or warranty is made that any results, projections, or other information being represented directly or indirectly here will be met or sustained.

How Do I Protect Myself Financially in a Divorce?

About the Author

Divorce Financial Planning | June 09, 2025

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