Divorce has a way of making everything feel urgent. By the time you’re in the final stretch, you’re likely tired, ready for it to be over, and just hoping life can settle down again. And it will.
But here’s the part most people don’t expect: those final weeks, and the few months that follow, are important when it comes to getting your financial life set up correctly.
A little preparation now can help prevent unnecessary stress, delays, and costly mistakes later.
Let’s walk through a few of the most practical steps you can take before your divorce is official.
1. Open Accounts Before Assets Are Divided
One of the most common, and avoidable, delays happens when accounts aren’t set up in advance.
If you are going to receive investment assets, retirement funds, or cash as part of your settlement, you’ll need accounts in your own name to receive those assets.
Here’s what to know:
- Even if you plan to move the money later, the initial transfer almost always happens where the account is currently held (common examples are Fidelity, Schwab, Vanguard, etc.)
- That means you will need to have an account open at the same financial company, in your individual name (if you don’t have one already, and remember, a joint account with your ex won’t work)
So, before your divorce is finalized, if you don’t already have these accounts:
- Consider opening an individual brokerage account (if you will be receiving taxable/brokerage/non-retirement assets)
- You may need to open an IRA (if you will be receiving retirement funds)
- In some cases, a Roth IRA may also be needed if you are receiving Roth IRA assets
Think of this as setting up the “landing place” for your assets. Without it, receiving your money can be slowed down.
2. Be Thoughtful About How Investment Accounts Are Divided
Not all dollars are created equal, especially in taxable investment accounts.
When non-retirement (brokerage) accounts are divided, there is something called cost basis, which determines how much tax you may owe when you sell investments in the future.
Here’s the issue:
- Financial institutions often default to dividing assets in a way that is not proportional
- Even when forms are completed correctly, errors are surprisingly common
This won’t necessarily impact you immediately after divorce, but it can affect your taxes for years to come.
What to keep in mind:
- It’s important to ensure division instructions are clear and intentional
- Following up after the transfer can help confirm everything was completed correctly
- It may be worth confirming accuracy rather than assuming everything was handled correctly
This is a detail that may have financial implications if overlooked.
3. Establish Banking and Credit in Your Own Name
If you’ve shared finances throughout your marriage, now is the time to fully separate.
You’ll want to have:
- A checking account in your own name
- A credit card in your own name
Unlike investment accounts, these do not need to be at the same institution as your spouse’s accounts. You can choose a bank that feels right for you.
This step isn’t just logistical, it’s foundational. It gives you independence and control over your day-to-day finances.
4. Plan for Health Insurance Changes
Health insurance is one of those details that becomes very important to sort through as your divorce is finalized.
If you’ve been covered under your spouse’s employer plan:
- You may want to contact the HR department to ask about COBRA coverage
- Understanding what your monthly premium could be is an important step
COBRA is often used as a temporary solution, but it can be expensive.
If you want to be proactive:
- It can be helpful to speak with a health insurance agent
- You may want to explore individual plans through the marketplace or private options
Most women stay on COBRA for a few months, then transition to a longer-term solution.
Knowing your options now helps you avoid scrambling later.
5. Prepare for the “After” No One Talks About
There is often a sense of relief when the divorce is finalized. But what many women don’t expect is this:
the few months after the divorce can feel just as busy, just in a different way.
There are:
- Accounts to transfer
- Paperwork to complete
- Financial systems to rebuild
It’s not hard—but it does require coordination.
Going into this next phase with realistic expectations can be helpful. You’re not doing anything wrong if it still feels like a lot, you’re just in the middle of a transition.
A Final Thought
These final weeks are not just about closing a chapter. They’re about setting up the foundation for everything that comes next.
You don’t have to do everything perfectly. But taking a few thoughtful, proactive steps now can potentially save you time, money, and unnecessary stress later.
And more importantly, it can help you to move forward with greater clarity and confidence.
If you’re approaching the final stages of your divorce and want guidance on how to navigate these financial decisions thoughtfully, we invite you to schedule a meeting with us. LINK
Our goal is to help you better understand what to expect and consider next steps with greater confidence.
