Divorce Financial Playbook

First 48 hours

Secure your accounts. Open a separate bank account in your name only at a bank where your spouse has no access. Set up an emergency account that only you control. This is about safety, not hiding money — you'll disclose everything in the divorce process.

Freeze your credit. Contact all three bureaus (Equifax, Experian, TransUnion) and place a fraud alert. Your spouse cannot take out new credit in your name, and you cannot accidentally take out credit in theirs.

Document your finances. Photograph or print statements for all accounts, debts, and assets as they exist TODAY: bank balances, credit cards, retirement accounts (401k, IRA), home equity, vehicles, and any significant possessions. Date everything. These are evidence of what you had going in.

Collect tax returns. Get the last 3 years of joint tax returns. You'll need them for the divorce settlement and for understanding income/deductions.

Gather paycheck stubs. Collect the last 3 months of stubs from both spouses. Alimony and child support calculations depend on documented income.

Write it down. List all debts — mortgage, car loans, credit cards, student loans, medical debt. Note whose name is on each and the current balance. During divorce, you're responsible for debts in your name, so you need to know what those are.

First month

Hire a divorce attorney. A consultation costs $200-500 and is worth every penny. You need a lawyer who understands your state's property laws (some states are community property, others equitable distribution, and the difference is huge). The attorney will advise on what to do next and what NOT to do.

Use the Divorce Financial Checklist to track immediate actions: notify insurance companies, update beneficiaries, freeze shared credit cards, and secure retirement accounts. This is not legal advice — it's a checklist of financial moves thousands of people have found essential.

Understand 401k division. If either of you has a 401k or pension, a Qualified Domestic Relations Order (QDRO) will divide it fairly WITHOUT penalty. This is critical: the wrong move costs 10% withdrawal penalty + income tax. Use the QDRO and 401k Split Guide to understand what's at stake, then your attorney files the QDRO.

Calculate what alimony might be. State formulas vary widely. Use the Alimony Calculator to see what judges in your state typically award — this frames negotiations.

Separate HSA/FSA accounts. If you have health savings or flexible spending accounts together, they must be split. Use the HSA/FSA Split Calculator to understand the tax implications of dividing them.

Plan health insurance. Your coverage ends when the divorce is final. Read the COBRA and Post-Divorce Insurance Guide — COBRA lets you stay on the plan for 18 months (expensive but uninterrupted coverage), or you can switch to ACA marketplace or your own employer plan.

First year

Rebuild credit carefully. After divorce, your joint accounts close and your credit rebuilds. The Divorce Credit Score Repair Guide shows how to recover from a 550 to 700+ in 2 years using a secured card and timely payments.

Finalize the settlement with an attorney. This is non-negotiable. The agreement protects both of you and prevents future disputes. Your attorney will ensure the QDRO is filed, retirement accounts are divided correctly, and the home (if any) is handled.

Update your estate plan. Your will, beneficiaries, and power of attorney all need updates. Use the Estate Plan Update Guide so that if something happens to you, your money and children go where you intend, not to an ex-spouse.

Understand the tax impact of the settlement. In 2026, alimony is no longer tax-deductible (receiver does not pay tax on it). This changed the whole negotiation landscape. See the 2026 Alimony Tax Treatment guide.

Plan housing if you're selling. If the home is being sold to split equity, the Home Sale or Buyout Guide walks through timing (capital-gains tax implications change if you owned it long enough), realtor costs, and how to split proceeds fairly.

Women: Additional recovery guidance. The Women's Financial Recovery After Divorce guide addresses income gaps, retirement catch-up, and rebuilding from a divorce where the spouse controlled finances.

Frequently asked questions