Wealth Insights
How to financially prepare for divorce

Article 11 min read Published July 1, 2025

Regions’ Wealth Management professionals say taking this first step can help when facing the challenges of untangling finances.

No one says, “I do,” with the idea they’ll someday say, “I don’t.”

Unfortunately, divorce remains a fact of life. Even though the divorce rate has been declining for decades—and according to the Institute for Family Studies, hit a 50-year low in 2020—more recent data from the Centers for Disease Control reflects that while marriage rates have risen, divorce rates now remain fairly stable.

When taking into account the number of separations, that still translates into roughly half of the married population in the U.S. facing the tough decisions around dissolving a relationship.

How to financially prepare for divorce: First things first

“We find the majority of clients engage with financial professionals at the end of the process once settlements are already made. This can be a costly mistake,” says Jama DeHeer, CFP®, CDFA® and senior wealth planner at Regions.

A Certified Divorce Financial Analyst® (CDFA®), DeHeer has helped advise wealth clients through all stages of divorce for two decades. Her advice: as soon as possible, find a credentialed professional to handle managing the financial complexities related to dividing marital assets both during and after divorce.

“Engaging a financial professional early in the divorce process can help clients identify, organize and interpret financial data in order to help them and their legal team negotiate financial issues and considerations strategically,” says DeHeer.

Having a credentialed professional engaged early on allows them to be part of the divorce team. Together, it’s important to build out a budget and complete a lifestyle needs analysis, which can help frame the foundation of negotiations as the legal team works to equitably divide marital assets through the divorce settlement process.

Seeing the big picture of your marital assets

“I seek to educate our clients on the types of assets they have, the tax implications of the different asset types, and help them understand which assets will likely support their long-term goals of achieving lifetime financial security as we build a divorce proposal,” says DeHeer. “This educational process does not replace legal advice, but the information we share can be provided to guide the process for the best outcomes.”

DeHeer says a Statement of Net Worth is one of the most critical documents in a divorce, as it provides a foundation from which many decisions are based.

Navigating the path forward

If a client has not previously been involved in managing personal finances, they often have many questions.

How much can I afford to spend on a new home?
How can I build an income plan with the assets I receive?
Will the assets I receive support my lifestyle goals?
Do I need to go back to work?
What income tax issues should I anticipate?

Once the proceedings are complete, there are additional financial considerations. Building a plan around your post-divorce life goals is the first step towards creating a comprehensive strategy to build and sustain financial security.

“It starts with establishing a realistic and sound cash-flow plan based on individual financial needs and implementing income tax minimization strategies that may be available,” says DeHeer. The next step involves identifying short- and long-term financial goals.

“For clients with children, there may be additional financial considerations, including increased childcare costs and planning for higher education funding, as well as the day-to-day expenses of raising children,” notes DeHeer.

There are various considerations when contemplating divorce. In addition to engaging lawyers, a financial professional experienced in divorce planning can help make this often emotionally fraught process a bit less stressful.

Once you have a clear picture of current resources and financial needs, a Regions Private Wealth Management wealth advisor can work with you to develop a sound financial plan to manage your income sources and investment portfolio to support your financial needs and wants throughout your life. Think of it as a road map of your financial future.

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