As a financial planner with over 14 years of experience, I’ve worked with couples navigating the emotional and financial complexities of divorce. I’ve seen firsthand how this life transition can be both daunting and overwhelming, but also how it can lead to incredible resilience and growth. In this article, we’ll explore financial planning for divorced women—not only the financial side of divorce but also the emotional challenges that often accompany it.
Chavisa Horemans (MES, CDC, CTRC), a trauma-informed Certified Divorce Coach, contributed to the section on financial abuse and economic control. With her unique blend of professional expertise and lived experience, Chavisa helps clients, particularly parents, navigate the complexities of divorce, from amicable separations to high-conflict situations involving hidden abuse. Her insights on trauma recovery and divorce coaching provide invaluable support for those facing financial manipulation, ensuring that individuals are empowered to make informed decisions and lay the foundation for a thriving next chapter.
Who Suffers Most in Divorce Financially?
Divorce can be financially devastating for both parties, but studies show that women often face greater financial challenges post-divorce. According to a report by the Government Accountability Office (US Statistics), the average woman’s household income falls by 41% following a divorce – nearly twice the loss experienced by men.1 This disparity underscores the critical need for financial planning for divorced women before, during, and after divorce proceedings.
Understanding the Unique Financial Challenges for Women
Divorced women often encounter several unique financial hurdles.
Let’s address income loss and the wage gap first. Women typically experience a more significant drop in income post-divorce, partly due to the persistent gender pay gap and time taken off for caregiving responsibilities.
Many women have gaps in employment due to child-rearing or caregiving, making it more challenging to re-enter the workforce or secure high-paying positions. It takes time for women to increase their income; their higher savings and earnings often come later in life.
In addition, women generally live longer than men, requiring more savings for retirement, but often end up with fewer financial resources post-divorce2. To make things more challenging if you were previously covered under a spouse’s health insurance, you may need to secure new coverage, which can be costly.
Essential Steps in Financial Planning for Divorced Women
Seek Professional Guidance
Consulting with financial professionals is crucial for navigating the complex financial landscape of divorce. Consider working with:
- A trauma-informed Divorce Coach (CDC®)
- A therapist or counselor
- A Certified Financial Planner (CFP®)
- An experienced divorce lawyer
- A tax professional
These experts can provide invaluable insights on various matters such as tax implications of dividing property, managing retirement assets, negotiating and evaluating spousal and child support, and understanding potential financial risks.
And most importantly, when things get heated, a counselor or trauma-informed divorce coach can be a lot cheaper than processing big feelings at a lawyer’s hourly rate. When emotions are out of control, the only ones who truly benefit are the lawyers, while everyone else is left paying the price—emotionally and financially.
Create a New Budget
Adjusting to a single-income household requires careful budgeting, especially in provinces like BC, Yukon, and Ontario, where living costs are particularly high.
Start by thoroughly assessing your new financial situation, including any changes in income and new expenses. This is where consulting a financial planner can be beneficial. I advise clients not to rush into financial decisions but instead to slow down and prioritize their needs.
Many individuals need this time to redefine themselves post-divorce and align their financial choices with their new identity. There are numerous decisions to make, and the slower the process, the more thoughtful these choices can be.
Of course, there’s a fine balance between procrastination and taking the time to think objectively. That’s where a Divorce Coach is helpful to understand the terrain of divorce so you have skilled help problem-solving and making informed decisions.
Next, create a detailed post-divorce budget that accounts for all sources of income and expenses. Once you’ve redefined your goals, values, and aspirations, it becomes easier to align your budget with your new perspective.
Review and Update Financial Documents
Post-divorce, financial planning for divorced women includes updating various financial and legal documents. Start by revising your will and powers of attorney, ensuring you appoint trusted individuals to manage your affairs if needed.
It’s also crucial to review and update beneficiary designations on life insurance policies and investment accounts—a common oversight that can have significant consequences. I often see ex-spouses still listed as beneficiaries years after a divorce, highlighting the importance of this step.
Additionally, update or establish new insurance coverage, including health, life, and disability insurance, to align with your post-divorce needs.
Establish Financial Independence
Take steps to secure your financial future:
Open individual bank and credit card accounts. This will help you build or rebuild your credit score by paying bills on time and managing debt responsibly. Consider Credit Karma to help you monitor your score.
A Divorce Coach can help you break big tasks, like financial autonomy, into manageable steps to ensure steady positive momentum.
In addition, consider refinancing shared debts solely in your name3. You want to separate ties with your ex-spouse while your relationship may still be somewhat amicable. Read my related article about divorce and finances in Financial Post.
Reevaluate Your Financial Goals
This is the perfect moment to reassess your financial goals, both short-term and long-term, based on your evolving needs, values, and aspirations. Take a step back and ask yourself:
How do you want to spend your money now?
What experiences truly matter to you?
Creating a thoughtful retirement plan is essential to understand how much you need to save for the future, while still allowing you to enjoy life today. The key is balance.
Many of us experience financial anxiety when we don’t have clear answers to these questions. Without a plan, that anxiety can lead to decisions that don’t serve your long-term financial well-being.
To build a solid foundation, set new savings goals for things like emergencies, education, or other important priorities. You might also explore opportunities for career growth or additional income streams to further strengthen your financial stability.
By defining your path with clarity, you can move forward with confidence and a plan that supports both your present and future.
Understand Tax Implications
Divorce can significantly impact your tax situation. Property transfers may trigger capital gains taxes, spousal support is taxable for the recipient and deductible for the payor, while child support is generally tax-neutral.
Having a trusted tax professional can help optimize your post-divorce tax strategy and ensure compliance with tax laws.
Plan for Long-Term Financial Growth
Look beyond immediate financial stability to build long-term wealth by exploring investment opportunities suited to your new financial situation. Since women often experience financial setbacks during divorce, it’s important to carefully consider the fees for financial planning and investment management advice.
Interview multiple financial planners to understand their fee structures and how they impact your long-term financial well-being. Seek an advisor experienced in guiding clients through life transitions, who focuses on holistic financial planning with a collaborative and coaching approach.
Remember, we thrive when surrounded by supportive professionals who can uplift and guide us toward new heights of financial stability and personal growth.
Financial Abuse & Economic Control
Contributed by Chavisa Horemans from TheMotherCorp.
Financial abuse is a method of exerting power in relationships or after a relationship ends by restricting access to money and economic resources.
Some people, frequently women, experience financial abuse in partnerships or marriage and some experience it after the relationship has ended. Economic abuse is a significant aspect of gender-based violence that can have a long-lasting impact and needs to be very considerately addressed in order to lessen the impact.
Early Stages of Financial Abuse
In its early stages, financial abuse may appear as:
- Controlling how money is spent
- Withholding money or “giving an allowance”
- Withholding basic living resources, medication or food
- Preventing a partner from working or earning money
Economic abuse involves actions that restrict a person’s ability to obtain, manage, or keep financial resources, undermining their financial stability and independence4 (Adams et al., 2008).
Escalations of economic abuse
Economic abuse can escalate to:
- Taking a partner’s money, identity, credit, or property without consent
- Non-consensual debt
- Non-disclosure of accounts, assets, and the entire financial picture/situation.
- Negative impact on credit score
- Financial litigation
Finances have a long-term trajectory that impacts well-being for decades.
More about Divorce Coach Chavisa
As a Divorce Coach, Chavisa frequently works with clients to safeguard their financial wellbeing. For clients experiencing financial abuse, she helps them navigate to safety. She helps clients gather facts to demonstrate their position, safeguard themselves and their accounts, works effectively with their professional team including their lawyer and financial planner.
Chavisa works with clients to demonstrate facts to address child support and spousal support with their lawyer. Further, she helps clients address financial blemishes to rebuild their credit scores.
Towards financial independence, she works with clients to establish the foundations for their next chapter so they can thrive. Often, this includes career-building strategies, monetizing their skill sets, and exploring employment opportunities, including salary and benefits negotiation.
Chavisa finds that her clients make great headway with effective support that acknowledges the complexity they are navigating while breaking substantive tasks into manageable pieces that we accomplish together.
Empowering Financial Planning for Divorced Women
Lastly, remember, financial planning after divorce is not just about survival – it’s about thriving and building a secure future.
By taking proactive steps and seeking professional guidance, divorced women can navigate this challenging transition and emerge financially empowered.
“A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.” – David Bach –
With careful planning and informed decision-making, you can create a strong financial foundation for your post-divorce life.
Financial planning for divorced women doesn’t have to be overwhelming. Take control of your future and book your free 30-minute consultation today!
References
- Woodford Salhappan McGee Law (2025, January 11) How Can Women Plan For Their Financial Future After the Divorce? ↩︎
- RBC Wealth Management (n.d.) Top financial concerns in a divorce and how to plan for them. ↩︎
- RBC Financial Planning (n.d.) Protecting Myself Financially in a Divorce. ↩︎
- Adams et al (2008, May) Development of the Scale of Economic Abuse ↩︎
