Divorce Financial Planning

Financial Clarity During a Major Life Transition

Deciding to divorce is one of the most emotionally and financially challenging life events an individual or family can experience. When a marriage ends, there are many important financial decisions that must be made, often in a short period of time and during an emotionally charged process.

While every divorce is unique, the goal of divorce planning is consistent:
to help individuals understand what their financial life will look like after the divorce is finalized, and to ensure decisions made today support long-term stability and peace of mind.

Why Financial Planning Matters in Divorce

The method used to divorce—whether mediation, collaborative divorce, or litigation—can have a significant impact on both the emotional and financial outcome. Regardless of the approach, financial decisions made during divorce are often permanent and difficult to reverse.

Having a financial professional involved can help bring objectivity, structure, and clarity to the process.

At Greenbush Financial Group, we have financial planners who have completed Certified Divorce Financial Analyst (CDFA®) curriculum and are well-versed in the financial issues that are unique to divorce.

Key Financial Decisions Made During Divorce

Divorce involves far more than simply “splitting assets in half.” Many assets are not created equal, and how they are divided can significantly affect future taxes, income, and financial security.

We assist clients with:

  • Evaluating equitable asset division scenarios

  • Understanding tax consequences of splitting assets

  • Comparing different settlement options

  • Identifying hidden or overlooked financial considerations

Our role is not to replace attorneys or mediators, but to support the process with financial insight that may otherwise be missed.

Retirement Accounts and QDROs

One of the most complex aspects of divorce involves retirement accounts.

Many retirement plans require a Qualified Domestic Relations Order (QDRO) to divide assets properly. Without a QDRO:

  • Transfers can be delayed

  • Taxes and penalties may apply

  • Assets may not be divided as intended

We help clients understand:

  • Which accounts require a QDRO

  • How retirement assets are divided

  • The long-term implications of retirement account decisions

Tax Considerations in Divorce

Divorce can significantly change a person’s tax situation.

Common tax-related considerations include:

  • Capital gains exposure when selling assets

  • Tax treatment of retirement accounts

  • Changes to filing status

  • Future tax brackets and cash flow

  • Alimony and child support tax implications (when applicable)

Understanding these issues in advance can prevent costly mistakes.

Modeling Life After Divorce

One of the most common—and important—questions during divorce is:

“Am I going to be okay financially after the divorce is complete?”

We help answer this question by:

  • Modeling post-divorce cash flow

  • Projecting retirement outcomes

  • Evaluating housing affordability

  • Assessing investment and savings strategies

  • Identifying gaps or risks early

As part of the divorce process, we work with each individual to develop a personal financial plan that reflects their new reality and future goals.

Schedule a Free Call
 

Our Divorce Planning Articles

Frequently Asked Questions About Divorce Financial Planning

  1. What does a financial planner do during a divorce?
    A financial planner helps analyze assets, taxes, cash flow, and future financial outcomes to support informed decision-making.
  2. Do I need a financial planner if I already have an attorney or mediator?
    Yes. Attorneys and mediators focus on legal matters and the divorce process, while financial planners focus on the financial and tax impact of segregating the marital assets.
  3. What is a QDRO and why is it important?
    A Qualified Domestic Relations Order allows retirement accounts to be divided without triggering taxes or penalties.
  4. Are all assets split 50/50 in a divorce?
    Not necessarily. Asset division depends on state law, asset type, and individual circumstances.
  5. How does divorce affect retirement planning?
    Divorce can significantly alter retirement timelines, income sources, and savings strategies.
  6. Can financial planning help avoid costly divorce mistakes?
    Yes. Many mistakes occur due to lack of understanding of taxes, retirement assets, and long-term implications.
  7. When should I involve a financial planner in the divorce process?
    Ideally early—before agreements are finalized—so all options can be evaluated properly.
  8. What happens after the divorce is finalized?
    We help individuals build a new financial plan based on their post-divorce assets, income, and goals.
 

Contact Us . . . .

partners-1.png

All of our services start with a complimentary consult. No high pressure sales tactics. We are financial planners, not salesmen.


Schedule a free consult call

About Our Firm:  Greenbush Financial Group is an independent registered investment advisory firm based in Albany, New York, that provides four main services to clients: fee-based financial planning services, investment management, employer-sponsored retirement plans, and retirement planning services.  The firm serves clients locally in the Albany region and virtually across the United States.

 
 

Posts By Topic