Navigating Finances During Divorce

Divorce impacts every part of your life, from your emotional well-being to your financial situation. One of the most important—and overwhelming—steps of a divorce is exchanging financial information. While this can feel intrusive, it’s essential to reaching fair agreements and avoiding costly disputes later on.

Fortunately, you don’t have to do this alone. With the right financial professionals (and a good family law attorney!), this process can be far more manageable.

Why Financial Disclosure Matters

Courts require full financial transparency in divorce. Both parties must provide accurate, complete information so that appropriate decisions can be made about property division, support, and long-term financial planning.

Incomplete, inaccurate, or delayed disclosure can slow down the divorce process and lead to unfair outcomes—for you or your partner.

Key Financial Documents to Exchange in Divorce

While every case is unique, most divorces require the exchange of the following categories of documents:

Income

• Recent pay stubs

• W-2s and 1099s

• Personal and business tax returns (typically the last 2–3 years)

• Profit and loss statements for self-employed spouses

• Documentation of bonuses, commissions, or other variable income

Bank and Cash Accounts

• Checking and savings account statements

• Money market accounts

• Online payment accounts (such as Venmo or PayPal)

Retirement and Investment Accounts

• 401(k), 403(b), and pension statements

• IRAs and Roth IRAs

• Brokerage and investment account statements

• Stock options or restricted stock documentation

Real Estate

• Deeds and mortgage statements

• Home equity lines of credit

• Recent appraisals or market analyses

• Rental property income and expense records

Debts and Liabilities

• Credit card statements

• Student loans

• Auto loans

• Personal loans or lines of credit

Insurance and Benefits

• Health, life, and disability insurance policies

• Cash value life insurance statements

• Employee benefits documentation

Business Interests

• Business tax returns

• Operating agreements or partnership documents

• Valuations or buy-sell agreements

How can a Financial Planner Help?

A financial profession, like a Certified Divorce Financial Planner (CDFP), can set you up for success during and after your divorce. Here are a few ways a financial professional can help.

• Create a clear picture of your marital finances. They can review everything you have—income, expenses, assets, and debts—to understand the current state of your finances and your options going forward.

• Understand how your taxes will be affected. In the chaos of a divorce, many people don’t think about the tax implications until the next tax season rolls around. A financial professional can explain how dividing assets, paying child support, changing your tax filing status, and more will impact your tax burden. 

• Prepare you for the future. After a divorce, you may feel like you’re entering uncharted financial waters. With a financial professional in your corner, you can step into this new phase of life with a realistic plan that will meet your new needs. They can review your expenses, determine investment strategies, set savings goals, and make sure that you have a clear path forward.

Divorce can be one of the largest life transitions a person faces. With the right information and support, it can also be the start of a more stable and empowered financial future.

Whether you’re just beginning the divorce process or are in the thick of financial disclosures, our team at Thrive Family Law can help you understand the requirements and get the best possible outcome for your family. Reach out today to learn more!