Divorce Planning: Guiding you through divorce with wisdom, care, and confidence.

Divorce Planning

Divorce planning is the strategic, proactive process of preparing yourself—legally, financially, and emotionally—before you file for or even formally decide on divorce. Its main purpose is to reduce stress, avoid costly mistakes, and gain a clear understanding of your financial and legal standing to empower you to make the best decisions for your future.

Divorce planning is typically broken down into three core areas: Legal, Financial, and Emotional/Practical.

Divorce Preparation

Financial Preparation (The Most Critical Step)

This is the most detailed and necessary part of planning, as financial knowledge is power during a settlement.

**First we need to know the GOAL then know the KEY ACTION to take:**

Document Gathering

Collect and securely copy all financial documents from the last 3-5 years: tax returns, pay stubs, bank statements (checking/savings), credit card statements, mortgage documents, investment/brokerage accounts, and retirement account statements (401(k), IRA, pension).

Understand Your Net Worth

Create a comprehensive list of all assets (what you own) and liabilities (what you owe), clearly distinguishing between individual and joint accounts/debts.

Establish Independence

Open an individual bank account and a credit card in your name only. Update your direct deposit information to your new individual account. Consult with an attorney before moving or withdrawing significant funds from joint accounts.

Create a New Budget

Track your current living expenses and create a realistic post-divorce budget. This helps you determine your future financial needs, which is crucial for negotiating alimony (spousal support) and child support.

Protect Credit

Run a free credit report to check for unauthorized or unexpected debts. Consider canceling joint credit cards to prevent your spouse from incurring new shared debt.

Divorce is an emotional journey, and planning helps build resilience.

Build a Support System: Identify trusted friends, family, or professionals (therapist, counselor, support group) who can provide emotional support and stability.
Focus on Self-Care: Prioritize your mental and physical health. Being emotionally grounded allows you to make clearer, more rational decisions throughout the process.
Safety Planning (If needed): If there are any concerns about potential volatility, create a safety plan, which may involve having a temporary place to stay and discussing protective orders with an attorney.
Gather Personal Belongings: Identify and secure important sentimental or personal property you want to keep.

QDRO

Get to know QDRO – Qualified Domestic Relations Ord

If you dedicated your time to caregiving while your spouse was the primary earner, you should be aware of the Qualified Domestic Relations Order (QDRO). A QDRO is a vital legal tool that allows for the equitable division of private pension and/or $401(k)$ retirement benefits earned by your spouse during the marriage.

AS YOU APPROACH DIVORCE, BE WARNED: A STANDARD DIVORCE SETTLEMENT IS OFTEN INSUFFICIENT TO PROTECT YOUR INTEREST IN YOUR EX-SPOUSE'S RETIREMENT ASSETS. YOU MUST ENSURE YOUR RIGHTS TO THAT PORTION ARE SPECIFICALLY AND SEPARATELY ADDRESSED.