More than 40% of married Americans go through a divorce, and navigating the financial aspects of such a change can be overwhelming, particularly if you weren't the person who handled the primary financial responsibilities beforehand.
The following tips from Mandy Kelso, Head of Financial Education, TD Bank U.S., and Olivia Howell, a divorce coach and co-founder and CEO of Fresh Starts Registry who is frequently quoted by major media, can help with planning your financial future as you take the first steps for the next phase of your life.
Become more familiar with your financial situation
Start by taking an inventory of your finances. Things to consider when creating this overview include bank accounts, credit cards, student loans, auto or other loans, mortgage(s), investment accounts and retirement funds. Then list all sources of income to provide a clear picture of your overall finances. Depending on your situation, child support or alimony also may be a debt or income.
Determine additional monthly household expenses that need to be covered, such as rent or mortgage payments, utility bills, groceries, subscriptions and other expenses. If you have children, list key costs such as medical care, daycare or after-school care, activities, clothing and other expenses related to your child.
The earlier you can do this, the sooner you will be able to spot gaps, such as accounts or debts you may not have previously known about. After identifying your household and other debts and income, you have the basics to build a budget.
Taking time to gather key documents can make ongoing financial management easier, including recent tax returns, pay stubs, bank and credit card statements, insurance policies, loan statements and annual credit reports.
Manage and rebuild credit
Review your credit reports from all three bureaus to confirm what’s listed under your name and Social Security number. Take time to dispute any errors, unfamiliar accounts or unknown authorized users.
Changes to joint accounts following divorce can influence factors like credit history length and credit utilization. For example, accounts where someone was previously an authorized user may no longer appear on their credit report, which can affect overall credit history. Credit scores can also change as joint debts are divided or refinanced (for example, moving a joint mortgage into one person’s name), which may change your debt-to-income ratio.
Because credit reports and scores continue to evolve over time, Mandy emphasized that reviewing reports periodically — rather than only once — can help people stay aware of changes and catch potential issues earlier.
Review joint accounts, beneficiary designations and potential Social Security benefits
After a divorce is finalized, reconfirm which financial accounts are now held individually or whether accounts still need to be updated. Make sure you also have changed all direct deposits and automatic payments to the new account.
Olivia sees this as part of the broader process of establishing financial independence following a major life transition.
This often includes reviewing retirement accounts, pensions and insurance policies to determine whether updates to beneficiary designations may be needed based on post‑divorce arrangements. For example, Social Security and retirement benefits are areas where post‑divorce rules can differ from what many people expect.
Rules around Social Security and retirement benefits can be complex after divorce, and many people are surprised to learn that prior marital history may factor into how benefits are evaluated. For more information, visit the Social Security Administration’s guidance on benefits for divorced spouses.
Review insurance coverage
Insurance is another area that may look different after divorce. Health, homeowners, renters and auto insurance needs can change as households separate or living arrangements shift. Check with your insurer to understand any specific requirements, including considerations for adding a child on your policies as appropriate.
Extra considerations for financially supporting children
For parents, financial planning after divorce often comes with additional layers of responsibility.
Emergency savings, for example, can help households manage timing gaps or unexpected costs. Setting up other support where possible, such as a life insurance policy that names the child(ren) or responsible party as the beneficiary, can provide an additional sense of family financial security. Building resilience over time — rather than perfection — is often the goal.
Don’t fall for quick money-making schemes
A major transition and financial pressure can increase vulnerability to fraud — especially “easy money” offers.
Mandy encouraged skepticism around guarantees of earnings and a reminder that trusted financial institutions offer educational resources to help people recognize common red flags.
Remember: This can’t be done in a day
Rebuilding financial confidence after divorce rarely happens overnight. Take one task at a time, use trusted resources, and focus on steady progress as you rebuild your financial footing.
For additional resources
If you need to build your own financial knowledge and comfort, TD offers an online library of foundational financial topics. TD also offers a downloadable worksheet to map your income and expenses. You can also work with a Certified Divorce Financial Analyst (CDFA) for a deeper financial review, according to Olivia.
We hope you found this helpful. This article is for informational purposes only and is based on information available as of May 2026 and is subject to change. This content is not intended to be used or acted upon with respect to any client's specific circumstances. For specific advice about your unique circumstances, consider talking with your qualified professionals.
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