Divorce represents one of life’s most challenging transitions, particularly when it comes to finances. For many individuals, divorce can significantly impact long-term financial stability. At HBKS Wealth Advisors, we understand the unique financial challenges people face during divorce and are committed to providing the guidance needed to emerge financially empowered.
The Financial Reality of Divorce
The statistics tell a compelling story about financial vulnerability during divorce:
- Households typically experience a 25-40 percent decline in income for families that are divorced at least six years.[1]
- The average cost of a divorce in 2025 was $7,000.[2]
- Retirement savings can be significantly impacted, as these assets are often split during divorce settlements.[3]
- The cost of maintaining separate households increases overall living expenses by an estimated 30%.[4]
These numbers highlight why specialized financial guidance during divorce is not just helpful—it’s essential.
Key Financial Considerations During Divorce
1. Understanding Your Complete Financial Picture
Before negotiations begin, compile a comprehensive inventory of all assets and liabilities, including:
- Bank and investment accounts
- Retirement plans and pensions
- Real estate holdings
- Business interests
- Outstanding debts
- Insurance policies
Many individuals, particularly those who weren’t the primary financial decision-makers in their marriages, discover assets they weren’t fully aware of during this process.
2. Evaluating Your Long-Term Financial Needs
Short-term thinking during divorce settlements can lead to long-term financial struggles. Consider:
- Future earning potential and career trajectory
- Healthcare costs, especially if transitioning from a spouse’s plan
- Housing needs and associated costs
- Children’s education expenses
- Retirement funding requirements
Our financial advisors can help create detailed projections to ensure settlement negotiations account for your future financial security.
3. Making Strategic Decisions About the Family Home
While keeping the family home may provide emotional comfort and stability, it’s important to evaluate whether it makes financial sense. Consider:
- Mortgage affordability on a single income
- Maintenance and property tax costs
- Potential future appreciation or depreciation
- Opportunity costs compared to other settlement options
Sometimes, liquidating this asset and investing the proceeds creates a more secure financial foundation.
Building Financial Independence Post-Divorce
Establishing Your Financial Framework
After your divorce is finalized, these steps will help secure your financial independence:
- Create a new budget reflecting your single-income reality
- Build an emergency fund covering 6-12 months of expenses
- Review and update all beneficiary designations on retirement accounts and insurance policies
- Establish credit in your own name if you previously relied on joint accounts
- Reassess your investment strategy to ensure it aligns with your new goals
Navigating Emotional and Financial Decision-Making
The emotional impact of divorce can influence financial decisions, sometimes to your detriment. Research shows that financial decisions made during periods of high emotional stress tend to be more short-sighted.[4] Consider these strategies:
- Separate emotional decisions from financial ones by establishing a structured decision-making process
- Work with a trusted financial advisor who can provide objective guidance
- Give yourself permission to pause before making major financial commitments during the first year post-divorce
Rebuilding Your Financial Identity
Divorce often necessitates reimagining your relationship with money. This process includes:
- Identifying your personal financial values now that you’re making decisions independently
- Setting new financial goals that reflect your individual priorities
- Developing financial literacy in areas where you may have previously deferred to your spouse
- Creating a financial self-care routine that includes regular review of your financial position
Planning for Future Financial Growth
Divorce often necessitates a financial reset, but it also presents opportunities to build wealth on your own terms:
- Maximize retirement contributions to make up for divided retirement assets
- Consider career advancement opportunities or additional education
- Establish clear financial boundaries in new relationships
- Work with a financial advisor who understands your unique situation
- Explore tax-advantaged investment strategies specifically beneficial for single filers
- Consider income diversification through multiple streams of revenue to create additional financial security
How HBKS Wealth Advisors Can Help
At HBKS Wealth Advisors, we specialize in guiding individuals through financial transitions with compassion and expertise. Our team includes myself, Donna Kline, a Certified Divorce Financial Analyst (CDFA®).
As a CDFA®, I bring specialized expertise in navigating the complex financial aspects of divorce. My training focuses on the financial issues that accompany divorce, including tax consequences, dividing marital property, analyzing pension and retirement plans, and determining sustainable spousal and child support. This certification reflects my commitment to providing expert guidance during this critical financial transition in your life.
Our advisors offer:
- Collaborative divorce financial planning to advocate for equitable settlements
- Post-divorce financial roadmaps tailored to your specific goals
- Investment strategies designed to rebuild and grow your wealth
- Ongoing support as your financial journey evolves
- Expert analysis of settlement options and their long-term implications
- Mediation support to help facilitate financial conversations during the divorce process
Our team understands that financial empowerment is not just about numbers—it’s about creating security and opportunity as you begin this new chapter.
Conclusion
Divorce marks both an ending and a beginning. While the financial challenges are real, with proper planning and professional guidance, this transition can lead to greater financial independence and confidence. At HBKS Wealth Advisors, we’re committed to helping individuals not just survive financially after divorce, but thrive.
Take the First Step Toward Financial Empowerment
Don’t navigate this challenging financial transition alone. Donna Kline, CDFA®, at HBKS Wealth Advisors is ready to help you secure your financial future with expertise specifically tailored to the unique challenges of divorce.
Contact Donna directly at (814) 836-5776 or dkline@hbkswealth.com to schedule a confidential consultation. Take control of your financial future today—because you deserve both peace of mind and prosperity in this new chapter of your life.
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References
[1] National Bureau of Economic Research, ” Income Declines after Divorce,” https://www.nber.org/digest/jul02/income-declines-after-divorce
[2] Forbes, ” Revealing Divorce Statistics In 2025,” https://www.forbes.com/advisor/legal/divorce/divorce-statistics/#key_divorce_statistics_in_2025_section
[3] Employee Benefit Research Institute, “Gender Gap in Retirement Savings,” Retirement Security Projection Model, 2022, https://www.ebri.org/retirement/retirement-security-projection-model
[4] Journal of Financial Therapy, “Financial Decision-Making Under Stress,” 2023, https://financialtherapyassociation.org/journal-of-financial-therapy/
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HBKS Wealth Advisors is a registered investment advisory firm. This article is for informational purposes only and should not be construed as financial, legal, or tax advice. Please consult with appropriate professionals regarding your specific situation.
