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Financial Awareness and Divorce

March 17, 2025

I’ve been approached by many matrimonial attorneys, therapists, and divorce coaches who ask me to help their clients with their finances before, during, and after their divorces. Many people getting divorced, both men and women, may be smart, accomplished, or at their top of their professions, yet were not the ones handling the finances in their marriage.

Many of these clients don’t know what they spend, how much their mortgage is, what assets they have. They’re unaware how much debt they have, what’s in their investment, pension, and retirement accounts. They weren’t the ones paying the bills, managing the investments, or meeting with the wealth manager, so how should they know? They often just signed the tax returns that were placed in front of them and didn’t pay much further attention to the details, so how should they be expected to understand the full picture?

I speak to many clients who say they have no idea what they have and what they’d get if they got divorced (or whether they can even afford it). Sometimes they’re even being told by their spouse that they won’t get maintenance – like spousal support, alimony, or child support – if they divorce. But not being totally financially literate shouldn’t be a source of embarrassment, and it certainly shouldn’t stop you from getting out of an unhappy marriage. If you do decide to divorce, you need to arm yourself with information.

What are the next steps?

First, meet with a matrimonial attorney so you can learn more about the process and understand all your options while going through the divorce.

Then, meet with a wealth manager who is also ideally a Certified Divorce Financial Analyst (CDFA™) for help figuring out what is yours, what is your spouse’s, what you own jointly, and what can be split. A CDFA™ will understand different state rules and can work with your matrimonial attorney to determine the best outcome for your situation.

If you didn’t initiate the divorce and are being told “I’ll take care of you and the kids”, you need to know specifics. How much will you need? A CDFA™ can help look at what you spend now and what you will spend after the divorce. They will work with you on a budget and splitting the assets. They will help you identify what are marital assets that both of you own and what are separate assets that will not be able to be split in the divorce. They can review any pre-nuptial or post-nuptial agreements that lay out the terms of a split. They can also help you consider who will keep the house, whether the house needs to be sold, how the retirement accounts, pensions, and stock options will be split, and equally as important, the tax ramifications of these decisions.

How can I get started?

The best way to get started is by gathering all the documents you can - bank statements, credit card statements, social security statements, retirement plan statements, pension plan statements, and tax returns. If you use an accountant, reach out and get copies of the last three years of your tax returns. If you don’t, you can use IRS form 4506 to request a copy. List everything that you own (jewelry, artwork, wine collections, cars, insurance policies). If your spouse owns part of a business, you should also gather partnership agreements, business documents, assets, and appraisals.

Sometimes clients tell me that they are literally stuck because they are drowning in paperwork. It can be very stressful. Without financial knowledge, it can be overwhelming. If that’s the case, have your CDFA™ work with you and take it step-by-step. They can help you organize the paperwork so that your matrimonial attorney will have everything they need to start the process and understand what the various outcomes might be.

Once these documents are gathered, your CDFA™ can work with you to create a lifestyle analysis, a roadmap of where you are, where you’re going, and how to get there. It will help spell out how you’re living now as a married couple, what you will need to maintain that standard of living in the future, and if that is possible. Now, two households rather than one will have to be supported. Sometimes it’s not possible to live the way you were living when it was just one household. Maybe you’ll need to refinance the mortgage. Maybe you can save on insurance policies. Maybe you’ll have to downsize. Maybe you’ll have to find ways to cut expenses or earn more money by rejoining the workforce if you’re not currently working. A lifestyle analysis lays out the trade-offs of what can and cannot be accomplished.

Conclusion

By following these steps and consulting a professional, you will not only be better able to stand up for yourself and get what you deserve in your divorce, but you’ll also come out of it more financially literate and confident in your abilities to move forward. Knowing what to expect and boosting your financial awareness will empower you and ultimately reduce some of the stress you feel throughout this difficult process. Contact us to learn how we can help you navigate this complex transition.

Wealthspire Advisors LLC and its subsidiaries are separately registered investment advisers and subsidiary companies of NFP, an Aon company. © 2025 Wealthspire Advisors

This material should not be construed as a recommendation, offer to sell, or solicitation of an offer to buy a particular security or investment strategy. The information provided is for informational purposes only and should not be relied upon for accounting, legal, or tax advice. While the information is deemed reliable, Wealthspire Advisors cannot guarantee its accuracy, completeness, or suitability for any purpose, and makes no warranties with regard to the results to be obtained from its use.

Please Note: Limitations. The achievement of any professional designation, certification, degree, or license, recognition by publications, media, or other organizations, membership in any professional organization, or any amount of prior experience or success, should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results or satisfaction if Wealthspire is engaged, or continues to be engaged, to provide investment advisory services.

CERTIFIED DIVORCE FINANCIAL ANALYST® or CDFA® professionals must develop their theoretical and practical understanding and knowledge of the financial aspects of divorce by completing a comprehensive course of study approved by the Institute for Divorce Financial Analysts (IDFA). CDFA® professionals must have two years minimum experience in a financial or legal capacity prior to earning the right to use the CDFA® certification mark.

CDS® and Certified Divorce Specialist® are registered trademarks owned by National Association of Divorce Professionals, LLC.

Aviva Pinto, CDFA®, CDS®
About Aviva Pinto, CDFA®, CDS®

Aviva Pinto, CDFA®, CDS is a managing director in our New York office.

View all posts by Aviva Pinto, CDFA®, CDS®

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