Divorce and finances

Divorce is among the most financially devastating events most adults experience. Net worth for divorcing couples drops by an average of 40–50%, and the effects linger for years. The goal during a divorce isn't to win — it's to protect your ability to recover quickly after it's over.

First 30 days

1. Open a checking and savings account in your own name if you don't have one already.
2. Download and save 12 months of statements from every joint account.
3. Pull a credit report to see every account you're associated with.
4. Document your household's assets and debts with as much detail as you can. Screenshots help.
5. Do not move or hide money — judges notice and it tends to backfire.
6. Get a lawyer before making any irreversible decisions, even in 'amicable' divorces.

The big financial decisions

• Splitting retirement accounts usually requires a Qualified Domestic Relations Order (QDRO) — without it, early withdrawal penalties apply. Your lawyer should know to request one.
• Keeping the house is almost always the wrong financial choice if the mortgage is large relative to income. Sentimentality is expensive.
• Credit cards in joint names may remain joint obligations even if the court assigns them to one person. Close joint lines as fast as practical.
• Health insurance coverage changes — COBRA or marketplace coverage may be necessary immediately.