Managing Finances through Divorce

Divorce is a personal transition that often affects many areas of life, including finances. Whether you are preparing for a divorce, currently navigating the process, or adjusting to life afterward, financial considerations may play an important role.

Our team at StackStone Wealth can work with individuals going through divorce to help them better understand their current financial situation and identify key areas to address, such as cash flow, tax strategies, insurance, and investment accounts. Here are some considerations when managing finances through divorce.

Before the Divorce
If you are anticipating a divorce, preparing your financial documents and accounts can be helpful. Consider the following:

• Gather key documents: Organize tax returns, bank and investment statements, retirement account summaries, and insurance policies.
• Review your credit: Monitor your credit reports and keep accounts current.
• Update your budget: Review and adjust your budget to account for changes in income and expenses.

View a more comprehensive list of considerations and actions to take if you are going through a divorce here.

During the Divorce
As the divorce process moves forward, it is common to encounter decisions involving the division of assets and future financial responsibilities. Some areas that may require attention include:

• Retirement plans and how distributions will be handled
• Ongoing income and expenses, including spousal or child support
• Cash flow and liquidity needs
• Division of investment and bank accounts
• Real estate or property transitions

After the Divorce
Once the divorce is finalized, it may be helpful to:

• Update beneficiaries on retirement accounts and life insurance
• Revisit your estate plan, including your will and power of attorney
• Review all insurance coverage and adjust as needed
• Open individual bank and investment accounts
• Reassess financial goals and timelines
• Establish or revise your financial plan

Connect with our Offices in Illinois, Iowa, Massachusetts, Michigan, and Wisconsin
Each divorce is different, and our team can help you review available options. If you have questions about how this life event may affect your financial situation, we are available to help provide ongoing guidance to bring more peace of mind.