Divorce Finances: A Financial Checklist Before and After Divorce

Financial planning for divorce starts with facts. Gather every account, debt, income record, tax return, insurance policy, benefit, and ownership document before agreeing to divide anything.

Then compare what each item is worth after taxes, debt, selling costs, and access rules. A house with a mortgage is not equal to the same dollar amount in a retirement account. A divorce decree also does not automatically remove your name from a joint loan.

State law controls many divorce and finances questions. Use this divorce financial checklist as organized divorce financial advice for preparing questions and records. It does not replace qualified legal, tax, or financial advice.

Here is the plain rule. Get the facts first. Do not guess. A balance is not the same as useful value. A name on a deed is not the same as a name on a loan. A court order does not rewrite a bank contract. Each layer needs its own check.

Make one list. Put every asset and debt on it. Add the owner, borrower, balance, rate, tax basis, and key date. Mark any item that you cannot prove with a current record. That short list can keep a hard process from becoming a blind one.

Keep the list up to date. Save each new bill and statement. Note what changed and when. A clean file can save time, fees, and repeat work.

Financial planning for divorce starts with documents

Collect records before access changes or communication becomes harder.

Income and tax records

recent pay statements;

the last three to five federal and state tax returns;

business, partnership, rental, and trust income records;

benefit statements; and

estimated-tax and refund records.

Assets

checking, savings, CDs, and Treasury securities;

brokerage, crypto, stock-option, and equity-compensation accounts;

401(k), 403(b), pension, IRA, Roth IRA, and HSA statements;

real-estate deeds, mortgage statements, and appraisals;

vehicles, valuable personal property, and business interests; and

life insurance cash-value and beneficiary records.

Debts and obligations

mortgages and home-equity debt;

credit cards and personal loans;

student and auto loans;

tax balances;

business guarantees; and

support or legal obligations.

Get the current statement, account number, named owners, named borrowers, beneficiary, balance, interest rate, cost basis when relevant, and any restriction on transfer.

A document map for preparing financially for divorce. The Department of Labor separation and divorce resources explain why retirement-plan records need special attention.

Dividing assets in divorce is not the same as dividing value

Start with net value:

market value - debt - expected selling cost - likely tax cost = useful comparison value

This is not a final legal valuation. It is a warning against comparing only the headline balance.

Asset | Hidden question
House | Mortgage, repairs, sale costs, basis, tax exclusion, and whether one income can carry it
Traditional 401(k) or IRA | Future withdrawals are generally taxable
Roth IRA | Qualified withdrawals may be tax-free, but rules and basis matter
Brokerage account | Unrealized gains or losses and cost basis
Pension | Lifetime income, survivor option, inflation terms, and plan rules
Business | Cash flow, control, marketability, debt, and valuation method

For the home, removing a name from the deed does not remove that person from the mortgage. The lender must release, refinance, or otherwise change the loan.

Joint debt can survive the divorce decree

A court order can assign a debt between former spouses. It does not rewrite the contract with the creditor.

If both names remain on a joint credit card or loan, the creditor may still seek payment from either borrower. The CFPB warns that a debt collector may contact someone about a joint debt after divorce if that person remains contractually responsible.

Before closing or freezing an account, consider automatic bills, pending refunds, direct deposits, and legal restrictions. Do not move or hide property. Ask your lawyer how to preserve money for ordinary needs without violating a court order.

Title, loan liability, a divorce decree, and creditor rights are separate layers. See the CFPB joint-debt explanation.

How a QDRO divides some retirement plans

A qualified domestic relations order, or QDRO, is a court order that meets federal and plan rules for assigning part of certain employer retirement benefits to an alternate payee.

The safest process usually looks like this:

Identify the exact plan and get its plan documents.

Ask the plan administrator for QDRO procedures and any model language.

Have the proposed division drafted and reviewed.

Submit it for the plan administrator's qualification process.

Obtain the signed court order.

Confirm that the administrator accepted it and recorded the alternate payee.

Follow the plan's payment or rollover rules.

Do not assume the divorce decree alone divides the plan. Do not assume one QDRO works for every plan. IRAs use different transfer rules, and government or military benefits can have separate systems.

The QDRO path is based on the Department of Labor practical QDRO guide. Plan procedures control the details.

Taxes that can change a divorce settlement

Tax results can change the useful value of an agreement.

Check:

filing status for the year;

who can claim eligible children and related credits;

sale-of-home ownership and use tests;

basis in property received;

retirement-plan transfer rules;

estimated tax and withholding;

treatment of support under current federal and state law; and

whether a planned sale or transfer creates gain, loss, or a reporting duty.

IRS Publication 504 covers federal tax issues for divorced or separated people. It does not answer state property law or replace tax advice for a complex settlement.

Financial planning after divorce

Use this order once the agreement is final:

Confirm that every required transfer happened.

Refinance, close, retitle, or monitor joint debts as the agreement requires.

Update direct deposits and automatic payments.

Build a budget using one household's real income and costs.

Change beneficiaries where permitted and appropriate.

Update the will, powers of attorney, health directives, insurance, and emergency contacts.

Check the credit reports for accounts that should be closed or changed.

Set new tax withholding or estimated payments.

Rebuild emergency cash.

Revisit retirement contributions and investment risk.

Some beneficiary designations cannot be changed during a case or may be controlled by the agreement, plan rules, or state law. Get legal direction before changing them.

When a divorce financial planner may help

A qualified divorce financial planner can help organize assets, model cash flow, and compare after-tax settlement choices. The person does not replace your lawyer or tax professional.

Ask:

What credential and divorce experience do you have?

Are you acting for one spouse or as a neutral?

How are you paid?

Will you model taxes, debt, insurance, and retirement income?

Which conclusions require a lawyer, appraiser, actuary, or CPA?

Common questions

Is it better to keep the house or the retirement account?

There is no universal answer. Compare the house's debt, repair cost, taxes, selling cost, and affordability with the retirement account's tax treatment, access limits, growth risk, and future income value.

Can a joint credit card hurt me after divorce?

Yes, if your name remains on the contract. A divorce decree may assign payment responsibility between spouses, but the card issuer can still enforce the original agreement unless the account is changed or closed.

Can I get Social Security on an ex-spouse's record?

Some divorced spouses can qualify based on an ex-spouse's record if federal requirements are met. The Social Security Administration, not the divorce court, applies those rules.

When should I update beneficiaries?

Review them during the case with legal advice, then again after the order is final. Plan rules, automatic-revocation laws, court orders, and waivers can affect the result.

This guide is general education. Divorce law, property rules, support, taxes, retirement plans, and creditor rights vary. Use a lawyer licensed in the relevant state and qualified tax and financial professionals for your facts.

Sources

U.S. Department of Labor, QDROs: The Division of Retirement Benefits Through Qualified Domestic Relations Orders. Accessed July 30, 2026.

U.S. Department of Labor, QDROs practical guide. Accessed July 30, 2026.

U.S. Department of Labor, separation and divorce tools. Accessed July 30, 2026.

Consumer Financial Protection Bureau, debt collection after divorce. Accessed July 30, 2026.

Internal Revenue Service, Publication 504: Divorced or Separated Individuals. Accessed July 30, 2026.

Internal Revenue Service, Topic 701: Sale of Your Home. Accessed July 30, 2026.

Internal Revenue Service, Topic 412: Lump-Sum Distributions. Accessed July 30, 2026.

Internal Revenue Service, retirement topics: divorce. Accessed July 30, 2026.

Social Security Administration, benefits for a divorced spouse. Accessed July 30, 2026.

AnnualCreditReport.com, federally authorized credit-report site. Accessed July 30, 2026.