Most financial advisors focus on investments—but real financial planning goes deeper. Learn how women in transition can gain confidence, clarity, and peace of mind through comprehensive financial planning that goes beyond the portfolio.
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Divorce brings profound changes to every aspect of your life, and your finances are no exception. Whether you handled the household money before or this is your first time taking full control, you’re entering a new chapter that requires finding your financial voice. While this transition may feel overwhelming, it’s also an opportunity to create a financial future that truly reflects your values and dreams.
Think of organizing your finances after divorce like unpacking after a move – you need to know what you have before you can arrange it properly. Start by gathering all your financial documents in one place. This includes:
Understanding your new financial reality means looking honestly at your income and expenses. Many women find it helpful to use a simple spreadsheet or budgeting app like YNAB or Monarch Money to track money flowing in and out. Don’t worry about making this perfect – the goal is to get a clear picture of where you stand today.
Once you understand where you are and what resources you have available, you can begin to think about where you want to go.
Just as you might change the locks on your house after divorce, it’s time to secure your financial home. Open new bank accounts and credit cards in your name alone. This isn’t about distrusting your ex-spouse – it’s about establishing your independent financial identity.
Next, review and update your important documents. This includes:
While tackling all of these logistics after just completing an emotionally draining divorce might not be something you want to jump into, just think of the alternative. What if something happens to you and your ex-spouse is still listed as your healthcare proxy and financial power of attorney in your estate documents? That means he will be able to make decisions about your life if you become incapacitated. Depending on how your divorce went, that is likely not what you want.
You don’t have to navigate this journey alone. Think of building your financial support team like assembling a personal board of directors. Consider working with:
Beyond professional support, connect with other women who have walked this path. Their experiences and insights can be invaluable as you make decisions about your future. You might find a local support group or an online community to join so that you have other to lean on as you make your way forward.
Now comes the exciting part – envisioning and planning for your future. Start with immediate security by building an emergency fund that covers 3-6 months of expenses. This financial cushion can help you feel more confident as you make longer-term decisions.
Think about what you want your life to look like in one year, five years, and beyond. This is your opportunity to define what you want and then go build it. Your goals might include:
Many women take divorce as an opportunity to think about what they really want after years of prioritizing the needs of others. Let this next chapter be one that you are excited to create.
Learning about money management doesn’t have to be intimidating. Start with topics that directly affect your life, like budgeting, investing basics, or retirement planning. You can find books about personal finance or courses from companies like HerMoney. You can also learn a lot on social media, but keep in mind many “finfluencers” are not licensed or regulated, so be careful who you follow. Many women find that financial knowledge naturally builds confidence in decision-making.
Remember that being good with money doesn’t mean never making mistakes. It means learning from experience and making choices aligned with your values. Trust your instincts – you likely know more than you give yourself credit for.
Your divorce marks the beginning of a new financial journey, not the end of your story. Take it one step at a time, celebrate small victories, and be patient with yourself as you learn and grow. Remember, the goal isn’t to become a financial expert overnight – it’s to create a secure and fulfilling future on your own terms.
Ready to take the next step in your financial journey? Let’s talk about how professional guidance can help you move forward with confidence. Schedule a consultation to discuss your unique situation and goals.
Sara Zuckerman, CFP®, CDFA® is the founder of Reset Financial Planning in Fort Collins, CO. Through virtual planning sessions, she partners with women nationwide who are navigating major life transitions, particularly divorce, inheritance and widowhood. Sara’s mission is to help women create a fresh financial start that aligns with their values and empowers them to move forward with confidence.
If you are interested in learning about how Reset Financial Planning can help you take charge of your finances as an independent woman, please contact us at or schedule a free 20-minute consultation.
Sign up for Reset Financial Planning’s Monthly Newsletter to effortlessly stay on top of my blog posts and occasional extra goodies and receive my Get Your Finances Organized Checklist for free!
Disclaimer: This article is provided for educational, general information, and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for the purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Reset Financial Planning, LLC, and all rights are reserved.
After a couple of very positive years in the stock market, volatility has come roaring back with a vengeance in the past month. The markets are swinging back and forth with each new tariff announcement from the White House. Investors are, understandably, spooked.
Whenever there is uncertainty about the future, the markets aren’t sure how to react and you can see this kind of movement. It is normal for the market to react this way, and it has happened many times in the past, but it can still be hard to stomach. For the most part, your best course of action is to stay the course and stick to your financial plan (assuming you have developed a plan). But that can be easier said than done. Especially if you are in the midst of a divorce while all of this is happening.
Managing volatility is never easy. But managing during a time when your life is filled with uncertainty is even more difficult. Not only are you anticipating dividing your assets in half, but you are also watching the value decrease by the day – how is anyone supposed to remain calm?
In this post we will cover things you should consider as a woman navigating divorce during market volatility. While staying the course may still make sense, there are other considerations, given your pending divorce, that you need to keep in mind.
One of the most important factors in any investment plan is your timeline. When determining your asset allocation and your risk tolerance, you must first understand how long the assets will be invested.
While the market can be very volatile over the short term, history has shown that it generally grows in the long term. Because of this, you generally should not invest the money that you need in the short term in the stock market. This rule applies whether you are getting divorced or not.
As you think about your investment strategy, it is often helpful to think of it in “buckets”:
Typically, the short-term bucket includes things that you may be planning to purchase in the near future like a new car or home improvement project. However, when you are getting divorced, this bucket should also include funds that you anticipate needing to pay out as part of your settlement or to cover your legal expenses. This is money that you want to keep in a high-yield savings account or a money market, generally not in stocks and bonds.
The long-term bucket is usually retirement savings or college funding, depending on your age and life stage. Even if you are approaching retirement in the next few years, you won’t be withdrawing all of your funds on the day you retire so at least a portion of your funds will still be invested for the long term. This longer-term money is what you can invest in the stock market.
One of the biggest assets most couples have is their home. If you are planning to keep your home after the divorce, that likely means that you will need to buy out your spouse’s portion of the home equity. If you are planning to do that with money from your investment accounts, then that is definitely something you should consider short term. As soon as you know you will be using assets to buy out your spouse’s equity, I recommend you move that money out of stock and into savings where it will be protected from market ups and downs.
Also keep in mind any new mortgage you may be taking out as part of the transaction. I recommend getting a mortgage lender (and preferably a Certified Divorce Lending Professional) involved in the process as soon as possible. There are things you will want to consider in terms of moving your assets and structuring your settlement so that you will be able to qualify for a new mortgage when you are ready.
Even if you aren’t buying out a house, you may still be required to split investment accounts. Splitting investment accounts, however, does not require selling any investments. Once you have your settlement agreement (or in the case of a 401k, your QDRO) you are able to request that the investment firm divide your assets into two accounts without selling anything.
This can be preferable because if nothing is sold, there will be no capital gains taxes. You can each take your half of the investments and continue to leave them invested and growing for the future.
However, you still need to consider your liquidity needs. What will be your income situation after the divorce? Do you need to withdraw from assets for a period of time to cover your living expenses? If so, then again, that is money that should probably be moved to a money market or high yield savings account, even if it means you will owe some capital gains tax on the sale of investments.
Whether you are happily married, or newly divorced, one of the key pieces of your financial plan is your emergency fund. It is important to have 3 to 6 months of expenses set aside in cash so that you can cover any unexpected expenses. And as a newly divorced person, I would recommend that you have more like 6 to 12 months of expenses in savings until you can adjust to your new situation. This should also be held in a high-yield savings account or money market so that it is easily accessible when needed.
Between your emergency fund and any cash you are holding for divorce related expenses, this can seem like too much cash to have on hand. However, you want to avoid having your funds fall 20% in a bad market just before you need them. Prioritize safety over FOMO with your settlement money and emergency funds.
And likewise, keeping anything in the market at a time like this, when your life already feels so unpredictable, can seem impossible. But again, you need to think about your timeline. Moving long-term assets to cash out of fear can be detrimental to your future self and your ability to meet your long-term goals. Even if you think it’s only for a short period of time, it becomes very hard to get back into the market once you get out and it frequently leads to greater losses over time as you miss out on the comeback.
Avoiding emotional responses to market volatility is hard, even when your life is otherwise calm and predictable. When market volatility is combined with the emotions and stress of divorce, it can be even more challenging to respond rationally. However, one of the biggest mistakes you can make is letting your emotions drive your investing.
When making decisions on whether to move your assets or change your investments, start first with understanding the timeline for when you will need the money. While you may need to liquidate some funds to cover short term expenses, don’t over liquidate things that are longer term such as your retirement funds.
Figuring out your investment strategy at this point is a balance between maintaining enough cash to meet your liquidity needs while also keeping enough invested so that you don’t jeopardize long-term growth and your future. It may seem like a tall order, but by understanding your timeline, it will be easier to manage.
As you think through the right next step for you, it may be a good idea to engage a skilled professional. A Financial Planner or Certified Divorce Financial Analyst can help you think through what cash you might need and when. And they can make recommendations on how you should be investing that are aligned with both your timeline and your risk tolerance.
This is also a good time to review your investment strategy and your risk tolerance. It is often the case that you feel differently about risk after a divorce then you did while married. And while that does not mean you should move all of your investments to cash, it may be time to rebalance into a lower risk portfolio. Again, a Financial Planner can help you think through what makes the most sense for you.
While market volatility is never fun, and is even more challenging in the midst of divorce, it is something you can manage with the right plan. Remain calm, think about your timeline and engage the right professionals to help. Both market volatility and the divorce shall pass, and you want to emerge on the other side in the best financial position possible.
Sara Zuckerman, CFP®, CDFA® is the founder of Reset Financial Planning located in Scottsdale, AZ. She supports women across the country with a focus on helping divorcees and widows align their financial resources with their values to plan for the next chapter of their lives.
If you are interested in learning about how Reset Financial Planning can help you take charge of your finances as a newly single woman, please contact us at or schedule a free 20-minute consultation.
Sign up for Reset Financial Planning’s Monthly Newsletter to effortlessly stay on top of my blog posts and occasional extra goodies and receive my Get Your Finances Organized Checklist for free!
Disclaimer: This article is provided for educational, general information, and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for the purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Reset Financial Planning, LLC, and all rights are reserved.
As a financial advisor who has worked with hundreds of women navigating post-divorce finances, I’ve seen this same combination of emotions play across many faces. If you’re reading this, you might be experiencing these feelings yourself – and you’re not alone.
The financial landscape after divorce can feel like uncharted territory. Suddenly, you’re solely responsible for your financial future, and while that can be empowering, it can also be overwhelming. But here’s the truth: this transition period is also an opportunity to rebuild your financial life exactly the way you want it.
The first step in any journey is knowing your starting point. Before making any major financial decisions, you need a clear picture of where you stand. Let’s break this down into manageable steps:
Start by creating a comprehensive list of your assets and liabilities. This includes:
Many women I work with are surprised to discover they’re in a better financial position than they initially feared. Others find areas that need immediate attention. Both scenarios are normal, and both are manageable with the right strategy.
The transition from a dual-income household to managing finances solo comes with its unique challenges. You might be facing:
Building a strong financial foundation requires focusing on the right priorities at the right time. While you might feel pressured to make every financial decision immediately, let’s focus on what truly needs your attention first.
If there’s one lesson the past few years have taught us, it’s that life is unpredictable. Your emergency fund is no longer about protecting a dual-income household – it’s about providing security for your independent future. While the traditional advice of 3-6 months of expenses still applies, I often recommend that newly divorced women aim for 6-12 months of coverage. Why? This extra cushion provides peace of mind during your transition and protects you from having to tap into long-term investments if unexpected expenses arise.
Your insurance needs likely changed significantly with your divorce. It’s time to review
Health Insurance
If you were covered under your ex-spouse’s plan, you have options:
Don’t let this slip – you have a limited window to secure new coverage without penalties.
Life Insurance
Review your policies with fresh eyes:
Long-term Care Insurance
Women typically live longer than men and have higher healthcare costs in retirement. Now is the time to consider whether long-term care insurance should be part of your financial planning strategy.
Your credit score might be the last thing on your mind, but it’s crucial for your financial independence. Take these steps:
If your credit score needs work, focus on:
Let’s face it – divorce likely threw a wrench in your retirement plans. But here’s the empowering part: you now have complete control over your financial future. Let’s look at how to reset and strengthen your long-term financial strategy.
First, let’s address what many women in their 40s and 50s worry about: “Am I too far behind?” The answer is no – you have more options than you might think. Here’s where to focus:
Retirement Accounts
Social Security Considerations
A often-overlooked benefit: if your marriage lasted 10+ years, you may be eligible to claim Social Security benefits based on your ex-spouse’s record without reducing their benefits. This could significantly impact your retirement income, especially if they were the higher earner.
Investment Strategy Adjustment
Now is the time to realign your investment strategy with your new life circumstances:
Risk Tolerance Reassessment
Working with Financial Professionals
While you’re taking control of your finances, remember that seeking professional guidance isn’t a sign of weakness – it’s a smart business decision. Consider building a team that includes:
Speaking of planning, this is the perfect time to revisit your estate plans. None of us like thinking about mortality, but protecting your assets and wishes is crucial.
Essential Documents to Update:
Beneficiary Designations
Review and update beneficiaries on:
In my experience working with divorced women, career development often takes on new significance. Whether you’ve maintained a continuous career path or are returning to the workforce, now is the time to maximize your earning potential.
Your career is one of your most valuable assets. Consider these strategies:
Professional Growth
Networking Strategies
Don’t underestimate the power of your network:
Creating multiple income sources provides both financial security and flexibility:
Part-time Work and Consulting
Passive Income Development
Business Ventures
Consider entrepreneurship if it aligns with your goals and your risk tolerance:
Creating a sustainable financial future requires aligning your lifestyle with your new financial reality.
Creating Your New Budget
Start with zero-based budgeting:
Smart Money-Saving Strategies
Success rarely happens in isolation. Surround yourself with professionals who can guide your journey:
As you implement these changes, remember:
Your divorce marked the end of one chapter, but it’s also the beginning of your financial independence. While the journey may seem daunting, remember that thousands of women have successfully navigated this path before you. Take it one step at a time, celebrate your progress, and don’t hesitate to seek help when needed.
Your financial future is in your hands, and with thoughtful planning and decisive action, you can build a secure and fulfilling life on your own terms.
Sara Zuckerman, CFP®, CDFA® is the founder of Reset Financial Planning located in Scottsdale, AZ. She supports women across the country with a focus on helping divorcees and widows align their financial resources with their values to plan for the next chapter of their lives.
If you are interested in learning about how Reset Financial Planning can help you take charge of your finances as a newly single woman, please contact us at or schedule a free 20-minute consultation.
Sign up for Reset Financial Planning’s Monthly Newsletter to effortlessly stay on top of my blog posts and occasional extra goodies and receive my Get Your Finances Organized Checklist for free!
Disclaimer: This article is provided for educational, general information, and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for the purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Reset Financial Planning, LLC, and all rights are reserved.
Divorce in mid-life can throw even the most carefully crafted retirement plans off track. As a professional woman, you’ve likely spent years building your career and planning for your future. Then divorce happens, and suddenly those plans need to be completely reconsidered. While it may feel overwhelming right now, know that it is possible to rebuild your retirement security. In this article, we’ll explore practical strategies for getting your retirement planning back on track after divorce.
The first step in rebuilding your retirement plan is to get a clear picture of where you stand financially. This means taking a thorough inventory of your assets, income, and expenses post-divorce. While this can feel daunting, especially if you weren’t deeply involved in the financial planning during your marriage, it’s crucial for moving forward.
Start by examining what assets you received in the divorce settlement. This might include retirement accounts, investment accounts, real estate, or other assets. Understanding not just the value, but also the tax implications and restrictions on these assets will help you make better decisions about how to use them going forward.
Next, look at your income and expenses. Your household income has likely changed significantly, even if you have a successful career. And your expenses may have changed as well. Perhaps you kept the house but now have higher maintenance costs, or maybe you downsized but have new expenses. Getting clarity on your cash flow will help you understand how much you can save for retirement going forward.
Now that you know where you stand, it’s time to think about where you want to go. What does retirement look like for you now? Perhaps your vision has changed along with your circumstances. Take some time to think about:
Once you have a vision, you can start to put numbers to it. Work with a financial planner to determine how much you’ll need to save to support your desired retirement lifestyle. This may be different from the numbers you were working with when married. Don’t forget to consider things like healthcare costs that might have been covered under your ex-spouse’s plan.
As a professional woman, you likely have access to workplace retirement benefits. Now is the time to maximize these opportunities. Consider the following strategies:
If you’re not already contributing the maximum to your workplace retirement plan, look for ways to increase your contributions. For 2025, you can contribute up to 23,500 to your 401(k), and if you′re over 50, you can make an additional 7,500 catch-up contribution (and an additional 11,250 if you are 60-63). Depending on your company’s plan there may be even more you can do. Certain plans will allow participants to do post-tax contributions up to the participant maximum of 70,000 and then convert those contributions to Roth in what is called a “mega backdoor Roth”. Check with your benefits department or your plan sponsor to see what options you may have.
If you’re 50 or older, you can make catch-up contributions to your IRA accounts as well as your 401(k). For 2025, the IRA contribution limit is 7,000 and the catch-up is 1,000 for both Traditional and Roth IRA’s. A traditional IRA contribution won’t be tax deductible if you are also contributing to a 401(k), but you are still allowed to make the contribution. Catch-up contributions are particularly valuable if you need to make up for lost time or divided assets.
If you qualify based on income, contributing to a Roth IRA can provide tax-free income in retirement. Even if your income is too high for direct contributions, you might be able to use the “backdoor Roth” strategy. The “backdoor Roth” requires additional tracking and tax forms so make sure you understand the process before trying it.
Your investment strategy may need to change post-divorce. Without a spouse’s income to fall back on, you might need to be more conservative with your investments. However, being too conservative could make it difficult to reach your goals. Consider these strategies:
Assess how much risk you’re comfortable taking now that you’re managing your finances independently. Your risk tolerance might have changed, and that’s okay.
Ensure your investments are properly diversified across different asset classes, sectors, and geographic regions to manage risk while still pursuing growth. You can easily diversify your portfolio using broad market index funds rather than individual stocks or more targeted funds.
Look for ways to manage taxes on your investments, such as using tax-loss harvesting or placing tax-inefficient investments in retirement accounts. For example, bonds tend to be less tax-efficient than stocks, so if you can keep them in an IRA or 401(k) rather than a taxable brokerage account, that can be advantageous. However, you want to make sure that you maintain the proper level of risk across your portfolio while moving things around for tax efficiency.
Set up a regular schedule to review and rebalance your portfolio to maintain your target asset allocation. This is not something you need to do every day, but I recommend setting a calendar reminder for once or twice a year to review and rebalance your accounts if necessary. Not doing this can lead to taking on more or less risk than you are comfortable with overtime.
As you rebuild your retirement plan, don’t forget about protecting your assets and income. Consider:
Review your life, disability, and long-term care insurance needs. You might need to replace coverage that was previously provided through your spouse. And if part of your divorce settlement is alimony or child support from your ex-spouse, consider taking a life insurance policy out on your ex-spouse to protect the value of those payments.
Update your estate planning documents, including wills, trusts, and beneficiary designations on retirement accounts and insurance policies.
Build or maintain an emergency fund to protect against unexpected expenses or income interruptions. Work towards having 6 to 12 months of expenses set aside in an emergency fund. As a single person, you may want to target the top end of this range because if you are laid off you won’t have a spouse’s income as a cushion. Keep your emergency fund in a high-yield savings account so that it is easily accessible but also earning a reasonable interest rate (many traditional bank savings accounts are paying significantly less than market rates).
Rebuilding your retirement plan after divorce is complex. Consider working with professionals who can help you make informed decisions:
Work with a financial advisor who understands the unique challenges of divorce and can help you create a comprehensive plan. While many advisors require that you move assets to them to manage, there are a number of advisors that work on an hourly or project basis who can help you build a plan if you don’t have assets to manage (or don’t want to move them to an advisor). Check out networks like XYPN or NAPFA to find these types of advisors.
Consult with a tax professional to understand the implications of your new financial situation and make tax-efficient decisions.
Update your estate plan to reflect your new circumstances and protect your assets. This is particularly important if you have minor children as you want to make sure they are provided for should anything happen to you.
While divorce may have disrupted your retirement plans, it doesn’t have to derail them permanently. By taking a systematic approach to assessing your situation, maximizing your savings opportunities, and making smart investment decisions, you can rebuild your retirement security. Remember, you’ve already showed resilience and capability in your career – these same qualities will serve you well as you reset your retirement strategy.
Take action now by reviewing your current situation and implementing these strategies. Consider working with a financial advisor who can help you create a personalized plan for your new circumstances. Your retirement dreams are still within reach – they might just look a little different than you originally planned.
Sara Zuckerman, CFP®, CDFA® is the founder of Reset Financial Planning located in Scottsdale, AZ. She supports women across the country with a focus on helping divorcees and widows align their financial resources with their values to plan for the next chapter of their lives.
If you are interested in learning about how Reset Financial Planning can help you take charge of your finances as a newly single woman, please contact us at or schedule a free 20-minute consultation.
Sign up for Reset Financial Planning’s Monthly Newsletter to effortlessly stay on top of my blog posts and occasional extra goodies and receive my Get Your Finances Organized Checklist for free!
Disclaimer: This article is provided for educational, general information, and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for the purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Reset Financial Planning, LLC, and all rights are reserved.
As a newly single woman, whether through divorce or the loss of a spouse, benefits open enrollment presents an important opportunity to reassess your health and financial security. Significant life changes often require adjustments to your health, life, and disability insurance to ensure your coverage aligns with your new circumstances and goals.
If you work for a company that provides benefits for you, you typically have open enrollment in October or November each year. Now is the perfect time to review your benefits in light of your new situation and make sure they are appropriate. In today’s post, I am going to discuss some key points to keep in mind during open enrollment.
If you previously shared health insurance with your spouse, this is the time to evaluate your own coverage needs. You may have access to employer-sponsored plans or need to purchase insurance through the marketplace.
If you’re in a new state or anticipate moving, don’t forget to review the availability of Medicare Supplement or Advantage plans if you’re eligible.
As your circumstances shift, so might your life insurance needs. Whether you’re now solely responsible for raising children, funding future goals, or paying off a mortgage, your coverage should reflect your current responsibilities.
It’s also important to update the beneficiaries of your life insurance policies. In the event of a divorce, ensure your former spouse is removed if necessary, and that primary and contingent beneficiaries reflect your new wishes.
Now that you are single, disability insurance can provide crucial income protection in the event that you are unable to work due to illness or injury. Many employers offer coverage, but it’s important to understand what is included in your policy.
As a newly single woman, planning for future healthcare needs becomes even more important. Long-term care insurance can help cover services such as assisted living, nursing home care, or in-home assistance, which may be harder to afford without a partner’s income.
It’s essential to update not only life insurance policies but also retirement accounts and other financial assets to reflect any changes to your beneficiaries. As a newly single woman, it’s even more important to ensure your primary and contingent beneficiaries are up to date.
While this may not be directly tied to benefits enrollment, your retirement planning might also need a fresh look. If you’re now solely responsible for funding your retirement, ensure that your contributions align with your future goals.
Open enrollment is the ideal time to reassess your health and financial coverage, especially if you are navigating life as a newly single woman. Taking the time to carefully review your health insurance, life insurance, and disability insurance will provide peace of mind and help secure your financial future. Make the necessary updates and adjustments now so you can move forward confidently, knowing you are protected and prepared for the next chapter.
Sara Zuckerman, CFP®, CDFA® is the founder of Reset Financial Planning located in Scottsdale, AZ. She supports women across the country with a focus on helping divorcees and widows align their financial resources with their values to plan for the next chapter of their lives.
If you are interested in learning about how Reset Financial Planning can help you take charge of your finances as a newly single woman, please contact us at or schedule a free 20-minute consultation.
Sign up for Reset Financial Planning’s Monthly Newsletter to effortlessly stay on top of my blog posts and occasional extra goodies and receive my Get Your Finances Organized Checklist for free!
Disclaimer: This article is provided for educational, general information, and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for the purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Reset Financial Planning, LLC, and all rights are reserved.
Divorce brings about many changes, and one area that can significantly affect your long-term financial security is Social Security. Whether you’re approaching retirement or planning for the future, understanding how Social Security benefits work after a divorce is crucial—especially for women who may have spent part of their marriage out of the workforce or earning less than their spouse. This guide will walk you through the basics, so you know what to expect and how to make the most of your benefits.
Social Security benefits are a vital component of retirement income for millions of Americans. The amount you receive is based on your earnings history, with credits earned through working and paying Social Security taxes. Generally, the longer you work and the more you earn (up to a certain cap), the larger your benefit.
For divorced individuals, Social Security can also provide spousal or survivor benefits, which may be based on your ex-spouse’s work record. These benefits can be a critical part of your financial plan, especially if your own work history is limited or if your ex-spouse earned significantly more than you.
If you’ve been divorced, you may be eligible to collect spousal benefits based on your ex-spouse’s work record, provided certain criteria are met:
If all of these conditions are met, you may be entitled to receive up to 50% of your ex-spouse’s full retirement benefit, provided you wait until your full retirement age (which ranges from 66 to 67, depending on your birth year). If you claim benefits earlier, the amount you receive will be reduced.
One key point to note: remarrying disqualifies you from receiving spousal benefits based on your ex-spouse’s record. However, you may become eligible to receive benefits based on your new spouse’s earnings record.
The amount you can receive from Social Security as a divorced spouse is tied to your ex-spouse’s full retirement benefit. You’re eligible for up to 50% of that amount if you claim at your full retirement age. However, claiming before your full retirement age will result in reduced benefits. For example, if you start collecting at age 62, the earliest age you can claim, your benefit could be as much as 30% less than the full amount you’d receive at your full retirement age.
It’s important to note that your ex-spouse’s benefits will not be affected if you decide to claim spousal benefits based on their record. They won’t be notified, and their monthly payments will not change.
If your ex-spouse passes away, you may be eligible for survivor benefits, which can be as high as 100% of their Social Security benefit. This is often more than you would receive from spousal benefits alone. To qualify for divorced survivor benefits, you must:
Survivor benefits can begin as early as age 60, although claiming before full retirement age will reduce the monthly amount. If you qualify for both survivor benefits and your own Social Security benefits, you can choose which to take first. This allows for some flexibility—many people opt to collect survivor benefits early and then switch to their own (usually higher) benefits at a later date, once they reach full retirement age.
If you’ve worked enough to qualify for Social Security based on your own earnings, you’ll need to compare your personal benefits with the potential benefits based on your ex-spouse’s earnings. The good news is that you don’t have to choose one or the other right away. If your spousal or survivor benefits would be higher than your own, you can opt to receive the larger of the two.
For instance, if your ex-spouse’s earnings are significantly higher than yours, spousal or survivor benefits may provide a better source of income. However, if your earnings record is strong, your own benefits could end up being higher over time. In either case, you’ll want to strategize the timing of when you claim Social Security to maximize your benefit.
Does my ex-spouse know if I collect benefits based on their work record?
No. Your ex-spouse is not notified, and your decision to collect based on their record does not impact their benefits in any way.
Can I collect benefits if my ex-spouse remarried?
Yes. Your ex-spouse’s marital status does not affect your ability to collect benefits based on their record.
What happens if I remarry?
If you remarry, you are no longer eligible to collect spousal or survivor benefits from your ex-spouse. You may become eligible for benefits based on your new spouse’s work record.
Collecting Social Security benefits after a divorce can be complex, but with proper planning, you can make decisions that enhance your long-term financial security. It’s important to consider your full financial picture, including other sources of retirement income, when deciding when and how to claim Social Security benefits. Working with a financial planner who understands the intricacies of divorce and Social Security can help you optimize your strategy.
Social Security is a vital source of income in retirement, and if you’re divorced, understanding your eligibility for spousal and survivor benefits is key to maximizing your financial security. By knowing the rules and planning ahead, you can make the most of your Social Security benefits as part of a comprehensive retirement plan.
If you’re navigating the complexities of Social Security after a divorce, let’s work together to create a retirement plan that ensures your financial security. Schedule a consultation today to get started on your path to financial independence.
Sara Zuckerman, CFP®, CDFA® is the founder of Reset Financial Planning located in Scottsdale, AZ. She supports women across the country with a focus on helping divorcees and widows align their financial resources with their values to plan for the next chapter of their lives.
If you are interested in learning about how Reset Financial Planning can help you take charge of your finances as a newly single woman, please contact us at or schedule a free 20-minute consultation.
Sign up for Reset Financial Planning’s Monthly Newsletter to effortlessly stay on top of my blog posts and occasional extra goodies and receive my Get Your Finances Organized Checklist for free!
Disclaimer: This article is provided for educational, general information, and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for the purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Reset Financial Planning, LLC, and all rights are reserved.
Navigating life after divorce involves many financial considerations, and one crucial aspect often overlooked is life insurance. I recently had the opportunity to contribute to an article for MoneyGeek on this topic. I shared insights on how life insurance can be vital in securing your financial future post-divorce. Whether you’re reevaluating your policy or considering new coverage, this article provides valuable guidance to help you make informed decisions during this significant transition.
Given the importance of proper life insurance in protecting your financial plan, I wanted to share my thoughts from the article in today’s post. I have also linked to the full article below.
A life insurance policy has three responsibilities:
In order to have a life insurance policy with someone besides yourself as the insured, you must have an insurable interest in that person’s life. You can’t just take out insurance policies on random strangers because that creates dangerous incentives. However, if you receive alimony or child support, you have an insurable interest in your ex-spouse’s life. If your ex-spouse dies, then the alimony or child support will stop immediately, which could be catastrophic to your financial situation.
I always recommend that if you receive any kind of support payment from your ex-spouse, you take out a life insurance policy to protect the lifetime value of those payments. You would be the owner, your ex-spouse would be the insured, and you would be the beneficiary. You must be the policy owner and make the payments to ensure that the policy stays in force and that the beneficiary remains you. If you rely on a policy that your ex-spouse owns, they could stop making payments or change the beneficiary at any time, and you would never know until it’s too late.
After a divorce, reviewing any life insurance policy you own is important to see if it still makes sense. Who is the beneficiary, and does it make sense in light of your current situation? Is the amount of coverage right, or do you need more or less since the divorce? You should also consider if there is a new need for a policy on your ex-spouse to cover any ongoing payments they owe you as part of the divorce should anything happen to them (see prior question).
You can read the full article on MoneyGeek.
Sara Zuckerman, CFP®, CDFA® is the founder of Reset Financial Planning located in Scottsdale, AZ. She supports women across the country with a focus on helping divorcees and widows align their financial resources with their values to plan for the next chapter of their lives.
If you are interested in learning about how Reset Financial Planning can help you take charge of your finances as a newly single woman, please contact us at or schedule a free 20-minute consultation.
Sign up for Reset Financial Planning’s Monthly Newsletter to effortlessly stay on top of my blog posts and occasional extra goodies and receive my Get Your Finances Organized Checklist for free!
Disclaimer: This article is provided for educational, general information, and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for the purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Reset Financial Planning, LLC, and all rights are reserved.
If I had a nickel for every time I was out in the world talking about what I do for a living and a woman said to me “Wow, I wish I knew you when I was going through my divorce,” then I would be a very wealthy woman. Unfortunately, most people do not know that Certified Divorce Financial Analysts (CDFAs) exist, let alone what they do. And yet, if you are facing divorce, it is likely the biggest financial transaction of your life. Having someone who is trained in the financial specifics of divorce by your side can be the smartest decision you will make.
You may be asking yourself, what does a CDFA actually do? Do I really need to spend MORE money on top of paying for lawyers and mediators and maybe therapists? Can’t my existing financial advisor just help me with my divorce? In this post, I will answer all of those questions and help you decide if a Certified Divorce Financial Analyst could be a valuable part of your team. Additionally, I have included some example analysis to illustrate just what kind of information your CDFA can prepare to help you as you work through your divorce.
First and foremost, a CDFA is a divorce financial expert. Their role is to provide a detailed financial analysis covering both the current landscape and making projections for the future given different settlement options. The CDFAs job is not to help you get the largest settlement possible, but to help you understand the short- and long-term impacts of various property division options and to help you create a realistic plan for the future.
As a first step, your CDFA will help you create a realistic budget. How much will each of you need to live on when there are two separate households to support? This is done by reviewing credit card and bank statements to understand the current spending and then adding and removing the things that will change once everything is separated.
Your CDFA will also help you think through things that might not be so obvious, such as who is going to shovel the snow each winter. If that is something your husband previously did, will you be handling that chore going forward, or will you need to add a line item to your budget to hire a service? There are a number of costs that aren’t relevant for you today but could be in the future.
Your CDFA can also help you understand the impact of spousal and child support on your future plans. While you may be thinking about getting through the next year or two, your CDFA will forecast decades into the future so that you can plan for a time when maintenance payments may end. They will also take these payments into account when helping you make decisions like whether you can stay in the home or not.
This can be invaluable in structuring your settlement. If you have been home with the kids for a number of years, and are planning to get back into the workforce, you want to be sure to negotiate enough maintenance to get you through any required education and job search time.
While the most challenging part of a divorce is the emotional aspect, ultimately what you are deciding is how to divide the property. And there is no one way to do that. There are typically things that are important to each spouse to hold on to and so that is where negotiation beings.
Your CDFA can help you decide what trade-offs you can make so that you can keep the things you want and what the implication of those trade-offs will be. For instance, you might want to keep the house but in order to do that you have to give up all of your retirement assets to keep things fair. That is probably not a good decision for you in the long term.
One of the biggest questions my clients typically have is “can I keep the house?”. Especially if the kids are still at home, having the stability of staying in the home can be a primary goal. But rarely do people really think about what that looks like in the long term. While it may make sense to keep the house in the short-term, what happens once maintenance ends? If you have to sell in the future, what will that mean from a tax standpoint as compared to selling it while you are still married? Your CDFA can help you forecast all of these things to understand if keeping the house really makes sense for you or if it will hurt you financially in the long run.
In addition to the primary home, retirement accounts tend to be the largest assets that divorcing couples need to divide. If retirement is still ten or twenty years in the future, it can be difficult to see the impact of decisions you make today on your future self. This is where a projected net worth statement can be invaluable.
Your CDFA can project what your net worth will be compared to that of your ex-spouse in five, ten, fifteen or even twenty years. These projections include the impact of your future income (inclusive of maintenance payments) and market growth on your investments. It can be a very clear way of seeing if a settlement that looks “fair” now might actually be quite unfair in the long term.
While you may not have heard of a CDFA before, if you are going through divorce, it is a good idea to at least consider hiring one. CDFAs have completed specific divorce financial planning education, well above and beyond what a non-divorce specific financial advisor has done. They also use specific tools that help them run a number of calculations and projections on various settlement options so that you can compare your options side by side before making any decisions. Having this level of data will go a long way towards giving you clarity and confidence moving forward.
This is likely the largest financial transaction of your life. And it is a time clouded by emotion and stress. Having the right professionals to educate and guide you can help prevent mistakes that you will regret for the rest of your life. If you have not yet interviewed a CDFA or two, this is your sign to reach out now (check out your options at the Institute of Divorce Financial Analysts).
Sara Zuckerman, CFP®, CDFA® is the founder of Reset Financial Planning located Scottsdale, AZ and serving women across the country with a focus on helping women who find themselves suddenly single in mid-life, align their financial resources with their values to plan for the next chapter of their lives.
If you are interested in learning about how I can help you take charge of your finances as a newly single woman, please contact me at or schedule a free 20-minute consultation.
Sign up for Reset FP’s Monthly Newsletter to effortlessly stay on top of my weekly blog posts and occasional extra goodies and receive my Get Your Finances Organized Checklist for free!
Disclaimer: This article is provided for educational, general information, and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Reset Financial Planning, LLC, and all rights are reserved.
Money is one of the most (if not the most) personal topics for most people. In fact, many women are much more likely to talk about their sex lives or personal health issues with their friends than their financial situation. Many of us were taught from a young age not to talk about or ask about money, and so we don’t.
Now imagine a scenario where someone you trusted with your money broke that trust. Maybe you don’t have to imagine it because you lived that experience with your ex-spouse. You trusted him to manage your finances and he didn’t do a great job – or even worse – hid things or lied about the money to you. How are you ever supposed to trust anyone with your money again?
As I have discussed before, our money is much more than numbers on a spreadsheet or a balance in a bank account. It is an emotional topic and our relationship to it is based on experiences and attitudes formed over a lifetime. It’s important for you to understand your money story and where it comes from so that you can recognize your blind spots and get the right support to move forward with confidence.
Unfortunately, I have seen lots of women who have been victims of bad financial decisions by their husbands. In some cases, it is less than stellar investment performance due to over confidence in investing knowledge. While in other cases it’s a gambling addiction that led the husband to drain all of the retirement and college accounts without the wife’s knowledge.
If you have experienced this kind of mismanagement of your funds or a lack of transparency, it will be difficult to get comfortable letting someone else in. These are valid feelings, and very understandable. But that does not mean it is in your best interest to try to manage everything totally on your own after your divorce.
So, what are you supposed to do if you don’t feel like you have the knowledge to manage your finances on your own, but you also don’t know how you can ever trust anyone with your money again? Well, it might not be easy, but it is possible to find an advisor you can trust to help you get educated and move in the right direction.
There are several key traits you want to look for, including transparency, competence, integrity, and empathy. And you will likely need to interview more than one advisor to find what you are looking for. Unfortunately, not all those who call themselves financial advisors work under the same standards or have the same level of competence. But there are advisors out there who have the skills, experience, and emotional intelligence to help you at this time.
Divorce is not necessarily the time to work with the advisor that your parents work with or that you know from college. While these advisors may be very good at managing investments or recommending insurance, they likely do not have specific skills and experience with the transition you are experiencing. They may not be equipped to help you in the way that will best serve you.
When researching advisors to help you, I recommend finding someone who specializes in divorce. One credential that indicates this is the Certified Divorce Financial Analyst (CDFA). You can find CDFAs near you through the Institute for Divorce Financial Analysts. Another important credential is the Certified Financial Planner (CFP). You can find these professionals through the CFP Board.
Another good resource is referrals. Check with your divorce attorney or mediator for referrals of local professionals they have worked with and liked. And if available, it’s always good to check out client testimonials and reviews. Unfortunately, certain states do not allow financial advisors to publish reviews, so just because they don’t have reviews doesn’t mean they aren’t good, you just have to find other ways to verify their experience.
Once you have a list of recommended advisors, I suggest that you interview several. In addition to skills and experience you want to find someone who you feel comfortable working with. It doesn’t matter how good an advisor is, if you can’t openly communicate with them and understand what they are recommending for you, it likely won’t be a fruitful relationship.
During the interviews, you want to understand their fee structure and if they require that you have them manage your investments. While many advisors do require investment management, there are also many who offer project planning services which do not require a certain level of assets. This can be helpful if you don’t have a lot of assets to manage or just aren’t ready to turn over your life savings to someone else, but you still need guidance and help. If you are considering asset management, be sure to ask about their investment philosophy as well.
As you go through the process, pay attention to how the advisors respond to your questions. Are they collaborative or are they just talking at you? Do you feel that their personality meshes with the way you like to do things? Listen to your gut, if something doesn’t feel right, don’t move forward with it.
Trust is not something you develop overnight. It will take time for you to truly get to know and trust any advisor you are working with. Get as much information as you can up front in terms of the process and what you can expect around communication and updates. If you can work on an hourly or project basis for a period of time before committing to a long-term investment management relationship, that might be ideal. That will give you time to make sure you have found the right person before committing to something that is harder to get out of.
As you are interviewing advisors, or starting to work with someone, there are definitely red flags to look out for. One of the biggest is high-pressure sales tactics. These usually indicate that the advisor is paid on commission, and they don’t get paid until you sign on the dotted line. Unfortunately, they may also be trying to get you to buy something that is more in their best interest than yours.
Also be wary of anyone who is not responsive to your questions. If they are evasive or just not organized in addressing and responding to your questions, it might be time to look elsewhere. Trust your instincts and seek a second opinion if something feels off. There are lots of amazing advisors out there who are fiduciaries (meaning they put your best interests first) and who get paid by you for advice rather than for selling you expensive products. It might take a little time to find one, but in the end, you will be glad you took the time.
Trusting someone to help you with your money after being burned by your ex-spouse is not easy. However, if you need help, you should seek it. There are many reputable advisors who can help you move in the right direction. You just have to know what to look for and where to find them. Ask for referrals, conduct multiple interviews, and trust your gut. With patience, diligence, and the right advisor, it’s possible to move forward with confidence.
Sara Zuckerman, CFP®, CDFA® is the founder of Reset Financial Planning located Scottsdale, AZ and serving women across the country with a focus on helping women who find themselves suddenly single in mid-life, align their financial resources with their values to plan for the next chapter of their lives.
If you are interested in learning about how I can help you take charge of your finances as a newly single woman, please contact me at or schedule a free 20-minute consultation.
Sign up for Reset FP’s Monthly Newsletter to effortlessly stay on top of my weekly blog posts and occasional extra goodies and receive my Get Your Finances Organized Checklist for free!
Disclaimer: This article is provided for educational, general information, and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Reset Financial Planning, LLC, and all rights are reserved.
