Financial Considerations During Divorce: Where to Start

Take Inventory of Assets and Debts

One of the first financial steps in a divorce is gaining a clear picture of what you own and what you owe—both individually and jointly. 

This includes obvious items like bank accounts, investments, and property, but also less visible connections such as store credit cards, memberships, phone plans, utility accounts, and savings earmarked for children or future goals. 

You can’t address what you can’t see. Creating a complete inventory is often the first step toward untangling shared finances. 

Untangle Joint Accounts Carefully

Joint credit cards and lines of credit deserve special attention. While closing accounts can sometimes affect credit scores, separating shared credit may help limit future financial risk once you’re legally able to do so. 



Because joint debts remain the responsibility of both parties, it’s important to proceed carefully and in coordination with legal guidance. The goal is to reduce exposure while staying compliant with divorce agreements and court requirements. 

Review and Update Estate Planning Documents

Divorce affects more than investment accounts. It’s also a trigger to review your broader estate plan. 

This may include: 

• Beneficiary designations 
• Powers of attorney 
• Healthcare directives 
• Distribution of personal belongings

 

Estate planning updates don’t have to be final or permanent—but they should reflect your current reality. Plans can always be revisited as life continues to evolve. 

Build a New Budget for a New Chapter

Income and expenses often change during and after divorce. Housing costs, legal fees, insurance, and daily spending may all look different than before. 

Creating a working budget—even if it’s temporary—can help you stay grounded during a period of transition. Revisiting and adjusting that budget over time allows it to evolve alongside your circumstances. 

Understand the Tax Implications

Dividing assets equally doesn’t always mean dividing them evenly from a tax perspective. Liquid assets, retirement accounts, real estate, and business interests can all be taxed differently. 

In addition, tax liabilities from prior years may remain a shared responsibility. Understanding how these factors affect future tax filings can help avoid surprises and inform smarter decisions during negotiations. 

Moving Forward with Support

Divorce is not just a financial event—it’s a life transition. While it may take time to regain a sense of stability, thoughtful planning can help you move forward with greater confidence and independence. 

If you have questions about how financial decisions fit into your broader picture, or need help reviewing next steps, we’re here to support you as you navigate this transition. 

Disclosures:

Advisory services are offered through Assurance Wealth Management, a Registered Investment Advisor in the State of Texas. Assurance Wealth Management is not affiliated with or endorsed by the Social Security Administration, Internal Revenue Service, or any other government agency.

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All written content is for information purposes only. The information contained herein has been derived from sources believed to be reliable, but is not guaranteed as to accuracy or completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual adviser prior to implementation.