Money Smarts Blog

Divorce is one of those life events no one adds to their vision board. Yet here we are. As a branch manager, I’ve sat across the desk from members navigating divorce more times than I can count. And while emotions usually lead the conversation, money is never far behind.

Here’s the thing I want you to know right away: divorce is personal, but the financial decisions you make during it can follow you for years. The good news is that with a little planning and the right support, you can protect yourself and set up a solid next chapter.

Let’s talk about what divorce really costs, what surprises people the most, and what you should think through before signing on the dotted line.

First, a Few Divorce Facts You Might Not Expect

Here’s some facts that might make you raise an eyebrow:

• The average divorce can cost anywhere from $15,000 to $30,000, and that’s before long-term financial changes kick in.
• Studies show that household income often drops by 30 to 40% after divorce.
• Most divorces are filed on a Monday. Apparently, weekends give people time to think.
• Financial disagreements are one of the most common stressors leading up to divorce, right up there with communication issues.

Translation: money matters before, during, and after divorce, even if it’s the last thing you want to deal with.

The Real Cost Isn’t Just Legal Fees

Yes, attorney fees and court costs add up quickly. But the bigger financial impact usually comes from everything else:

• Splitting assets and debts
• Housing changes
• Insurance updates
• Retirement adjustments
• Rebuilding credit or financial independence

This is where I see people get caught off guard. It’s not just about dividing what you have today, it’s about how your financial life works tomorrow.

A Money Checklist Before and During Divorce

If you’re facing divorce, here are some key financial items to think through. Consider this your calm, practical checklist from someone who’s walked many members through it.

Accounts and Cash Flow

• Open a checking and savings account in your own name if you do not already have one
• Update direct deposit and automatic payments
• Track monthly expenses so you know what life really costs solo

Debt and Credit

• Pull your credit report and review all open accounts
• Close or freeze joint credit cards when appropriate
• Decide who is responsible for shared debts and make sure it’s documented

Housing

• Understand the true cost of keeping the home versus selling
• Factor in taxes, insurance, maintenance, and utilities
• Plan for moving expenses or new housing deposits

Insurance

• Review auto, homeowners, renters, and umbrella coverage
• Update beneficiaries where needed
• Consider how health insurance will be handled post-divorce

Retirement and Long-Term Planning

• Understand how retirement accounts will be divided
• Make sure any required legal orders are completed correctly
• Revisit savings goals and timelines

One More Thing People Forget: Confidence

This might be my branch manager soapbox moment, but here it is anyway.

Divorce can leave people feeling unsure about money, even if they handled finances before. Asking questions, double-checking details, and getting help is not a weakness. It’s smart.

At IHMVCU, we talk with members every day who are rebuilding, restructuring, or just trying to feel steady again. Whether it’s setting up new accounts, talking through budgets, or planning next steps, those conversations matter.

A New Chapter Deserves a Solid Financial Foundation

Divorce is not the end of your financial story. It’s a pivot. And like any pivot, it’s easier when you know your options and have people in your corner.

If you’re going through a divorce or thinking about it, stop by a branch or start a conversation with us. We’re here to help you make sense of the numbers, protect what matters, and move forward with confidence.

Because while divorce has a cost, peace of mind is priceless.