Divorce Happens: Planning Steps You Need to Know
If your marriage is strained, it’s not a bad idea to explore some of the basic steps you’d need to take to make a smooth exit. Planning ahead of time in case of divorce can make things easier on everyone involved.


There's a lot of things people plan for in marriage. Buying a new home, joint finances, having kids and plenty of other minor plans you stick on your fridge. Divorce is never one of them.
With divorce rates now hovering around the 50% rate, I’d hate to ignore the unhappily married couples, as there are certainly unique planning circumstances they must address.
Lifelong Commitments in the COVID-19 Pandemonium
During the COVID-19 pandemic, the "in sickness and health" part of the vows has been subject to severe neglect never seen before.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The statistics are terrifying for a nation that had a 50% divorce rate before COVID. For one, the number of people seeking divorce was 34% higher from March through June 2020 compared to 2019. Data shows that 31% of surveyed couples admitted that lockdowns caused irreparable damage to their relationships.
If you find yourself to be one of those whose marriage survived the brunt of COVID-19 by a whisker, it may be time for you to consider planning for a divorce. Here are some tips that may help as you approach and/or become divorced.
Good Documentation Will Pull You Through
The importance of having good documentation throughout and in the tail-end of a marriage cannot be overstated. Money issues are oftentimes what kill marriages and haunt people long after they're separated.
Keeping a good documentation of all your assets and all your debts is what will pull you through a divorce with your sanity intact. It is also highly advisable to have copies of the divorce decree and solid accounting that can be traced back to every single major asset purchase and sale to help with the division of assets.
Always Update Accounts and Notify Institutions
During a marriage, many partners find themselves making legal changes that are binding. These include changing names, addresses, credit cards, filing taxes and work benefits. All these changes and commitments unwind during those last days of marriage.
During your divorce, make sure to notify the necessary departments, such as employers and banks, of the changes or adjustments you are making. If you're changing your name, a visit to your Social Security office is highly advisable. So is changing all your addresses if you plan to move out.
Moreover, in case you have any kids together when you are at the point of divorce, notify your soon-to-be ex-spouse’s employer in case you may be entitled to any benefits. Most importantly, if you have your ex-spouse as a beneficiary in any legal contract, you may want to change that at the point of divorce.
Joint Accounts May Be an Issue
The jury on whether couples should keep joint accounts is still out. However, this does not negate the reality that many couples find themselves in messy divorces with their finances and credit still intact. To keep your physical, mental and spiritual health intact, flee any joint account you're in at the point of divorce or as you approach it.
In the common occurrence that you and your ex have names on bills, remove your name from the aforementioned bills to detach yourself from your ex's ability to pay bills. Failure to do so may affect your credit if your ex-spouse stops paying their bills.
In a divorce, protecting your credit is of utmost importance. If you're a non-working spouse, you will never go wrong with applying for a new credit card before the divorce. You can usually claim all the income in the marriage during the application process. However, if you’re divorced and have no real income, you may not qualify. Also, ensure that the credit card you have is in your name with you as the cardholder and not just the authorized user.
Assemble Your Team
Divorces are some of the most complex things people undergo in their lives. There are many cards in play involving different institutions, lawyers, accountants and tax experts. Don't go through it alone.
The greatest gift you can give yourself during a divorce is to find and assemble a team to help you pull through. It goes a long way in ensuring health, wealth and happiness. You’ll be facing financial and tax-planning issues, among all the other things to consider. This will be an integral moment in understanding your newfound finances.
The process is painful and unpleasant by its nature, so do your best to settle things quickly and with as little back and forth as possible.
Your Take-Away
A happy marriage is not guaranteed, and happily ever after is elusive in many cases. Contrary to popular belief, divorce doesn't always have to be an endless nightmare. With the right advice and planning, you can walk out of it with both your sanity and peace of mind intact.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

In March 2010, Andrew Rosen joined Diversified, bringing with him nine years of financial industry experience. As a financial planner, Andrew forges lifelong relationships with clients, coaching them through all stages of life. He has obtained his Series 6, 7 and 63, along with property/casualty and health/life insurance licenses. Andrew consistently delivers high-level, concierge service to all clients.
-
Get Netflix, Hulu and Apple TV Plus for Free by Joining T-Mobile
T-Mobile customers save up to $35/month on streaming services thanks to this Netflix, Hulu and Apple TV Plus bundle. Here’s how to get it.
By Rachael Green
-
Missed Tax Day? You Could Still Be Eligible for These Valuable Tax Refunds
Tax Refunds As many as one million taxpayers could be missing out on a significant tax refund.
By Gabriella Cruz-Martínez
-
Going to College? How to Navigate the Financial Planning
College decisions this year seem even more complex than usual, including determining whether a school is a 'financial fit.' Here's how to find your way.
By Chris Ebeling
-
Financial Steps After a Loved One's Alzheimer's Diagnosis
It's important to move fast on legal safeguards, estate planning and more while your loved one still has the capacity to make decisions.
By Thomas C. West, CLU®, ChFC®, AIF®
-
How Soon Can You Walk Away After Selling Your Business?
You may earn more money from the sale of your business if you stay to help with the transition to new management. The question is, do you need to?
By Evan T. Beach, CFP®, AWMA®
-
Two Don'ts and Four Dos During Trump's Trade War
The financial rules have changed now that tariffs have disrupted the markets and created economic uncertainty. What can you do? (And what shouldn't you do?)
By Maggie Kulyk, CRPC®, CSRIC™
-
I'm Single, With No Kids: Why Do I Need an Estate Plan?
Unless you have a plan in place, guess who might be making all the decisions about your prized possessions, or even your health care: a court.
By Cynthia Pruemm, Investment Adviser Representative
-
Most Investors Aren't as Diversified as They Think: Are You?
You could be facing a surprisingly dangerous amount of concentration risk without realizing it. Fixing that problem starts with knowing exactly what you own.
By Scott Noble, CPA/PFS
-
Will My Children Inherit Too Much?
If you worry about how your children will handle an inheritance, you're not alone. Luckily, you have options — from lifetime gifting to trusts — that can help.
By Mallon FitzPatrick, CFP®, AEP®, CLU®
-
Charitable Giving Lessons From Netflix's 'Apple Cider Vinegar'
Charity fraud is rife, and a Netflix series provides a timely warning about donating money to a good cause without looking into its background.
By Peter J. Klein, CFA®, CAP®, CSRIC®, CRPS®