If you’re considering divorce, or will be going through a divorce in 2026, don’t do it alone. Build a team of trained professionals, gather key financial documents early, and understand your legal options before you act. With recent changes in tax laws and new savings opportunities taking effect, being informed – and prepared – can make a big difference in your financial outcome.
1. Don’t Go Through Divorce Alone
Divorce can be overwhelming, especially when finances are involved. One of the most important steps you can take is to build a strong team of professionals. Beyond your attorney, consider working with:
- A Certified Divorce Financial Analyst® (CDFA®) to help you understand asset and debt division options, Spousal Support, and Child Support, and future financial planning. (https://institutedfa.com/find-a-cdfa)
- A Certified Divorce Lending Professional® (CDLP®) if a home, refinancing, or mortgage is part of your matter. (https://www.divorcelendingassociation.com/)
- A Certified Divorce Real Estate Expert® (CDRE®) for guidance on property sales or valuations.
Think of this as assembling a sports team – each professional has a position, and a skill set that helps you reach the best outcome. You don’t have to play every position yourself.
2. Gather Financial Documents Early
Organization is your best ally. Before negotiations begin, collect at least three to five years of:
- Tax returns (Personal and Business)
- Bank, Credit Union, and investment account statements
- IRA, Annuity, and employer retirement account, such as 401(k) statements
- Mortgage and loan documents
Also pull Credit Reports (www.annualcreditreport.com), and collect all insurance (Life, Disability, Long Term Care, and Property and Casualty) policy details.
Avoid accessing your spouse’s accounts without permission; focus instead on obtaining the information that legally pertains to you. Bringing accurate records to your financial and legal professionals saves time, reduces stress, and leads to better decisions.
3. Know the Difference Between Legal Roles
Not every attorney-client relationship looks the same. Some attorneys act as Consulting Attorneys, offering advice or answering specific legal questions without representing you in Court. Others are Retained Attorneys, meaning they handle all legal filings, negotiations, and Court appearances.
When interviewing attorneys, ask about both options. Consulting Attorneys can be a cost-effective way to get guidance while maintaining more control over your process.
4. Choose the Right Divorce Path
Many people assume divorce must happen in Court, but that’s not the only path. Litigation often leads to higher costs, more stress, and less control. Other approaches – such as Collaborative Divorce, Mediation, or Negotiated Settlements – can help you and your spouse reach agreements respectfully and privately.
Before deciding, explore all of these options. Choosing the right process for your family can help preserve relationships and reduce long-term financial harm.
5. Be Aware of Tax and Financial Changes
The “One Big Beautiful Bill” signed into law on July 4th, 2025, introduced several updates that may affect divorcing couples. Here are a few highlights:
- Child Tax Credit (CTC) Enhancements: Increased and now indexed for inflation.
- Mortgage Interest Deduction: Made permanent the deduction limit of $750,000, for most homeowners.
- State and Local Tax (SALT) Deduction: Increased from $10,000 to $40,000 for most filers. Temporary increase and applies through the 2029 tax year.
- 529 Education Accounts: Expanded eligible uses to allow more flexibility for children’s educational expenses, such as credentialing programs, professional licensing exams, tutoring, and educational therapies for children with disabilities. Starting in 2026, the annual distribution limit of K-12 expenses doubles from $10,000 to $20,000 per child.
- “Trump Accounts”: A new tax-advantaged savings plan for children, allowing up to $5,000 of after-tax dollars annually in contributions starting in 2026, without requiring the child to have earned income. Even employers are eligible to contribute up to $2,500 to their employees’ accounts. The funds will be invested in an index fund that tracks the S&P 500, and withdrawals are prohibited before the beneficiary is 18. For children born in 2025 through 2028, the Federal Government is seeding the account with a $1,000 grant.
These changes could directly impact your settlement terms, especially if you have children, own property, or plan for college expenses. Work with your financial team to understand how these updates fit into your strategy.
FAQs
- Why do I need a financial professional during my divorce?
Divorce often involves complex tax and retirement issues. A financial professional trained in divorce can help you make informed choices and avoid costly mistakes. - What if my divorce is already finalized – do these changes still affect me?
Possibly. Tax laws and financial benefits can influence ongoing support, custody, or modification discussions. It’s worth reviewing your situation with a tax professional. - How soon should I start collecting financial documents?
Start as soon as possible. Early preparation helps your legal and financial team create an accurate financial picture and negotiate more effectively.
