If you think a divorce may be on the horizon, start documenting every asset you and your spouse own. This isn’t just about protecting yourself in negotiations — it’s about creating a paper trail in case your spouse tries to conceal anything. Your list should include:

• Bank accounts (checking, savings, money market)
• Safe deposit boxes
• Taxable brokerage accounts
• Retirement accounts (401(k), IRA, pension, etc.)
• Medical savings accounts
• Real estate holdings
• Insurance policies (including any cash value, death benefit amount and beneficiaries)
• Personal property (cars, jewelry, art, etc.)
• Business interests (stocks, options, partnership interests, etc.)

Alongside your assets, list all your outstanding debts, such as:

• Mortgage balances
• Home equity loans
• Credit card debt
• Student loans
• Auto loans

This exercise will help ensure you have a fuller picture of your overall financial situation, and it will also help your attorney with negotiating a fair settlement.

If you signed a prenuptial agreement, now is the time for your attorney to carefully examine it. Was there a full financial disclosure? Did both parties have independent legal representation? If not, your prenuptial agreement could be subject to revision or even deemed unenforceable.

Next, consider the impact of health insurance. If you and your children are on your spouse’s employer health plan, you'll need to either switch to your own coverage (if you’re working) or continue the existing coverage under COBRA for up to 36 months. Don’t forget to notify the Human Resources department once your divorce is finalized. You’ll also want to reassess your life and disability insurance coverages to make sure they are still sufficient now that you will be on your own.

This is also a good time to revisit your estate planning documents to:

• Update your will, trust, and health care directives to reflect your new circumstances — this may include appointing someone other than your ex-spouse to make medical or financial decisions on your behalf.
• Take time to review the structure, provisions, trustees and beneficiaries of any trusts you and/or your spouse may have created. 

You may have joint accounts with your spouse. It’s essential to freeze or close these accounts (depending on the tax consequences) and open new accounts in your name only. This will help you take control of your finances moving forward.

Don’t forget your beneficiary designations. It’s common for spouses to be listed as primary beneficiaries for life insurance policies, retirement accounts (401(k), IRA, pension), and even annuities. Schedule a meeting with your attorney to update these designations, and review the ownership of any major assets like vehicles and real estate to ensure they’re titled correctly. 

A divorce can have a significant impact on your credit, especially if you’ve shared accounts with your spouse. Many credit card companies offer free access to your credit score, so be sure to check your report and dispute any inaccuracies. It’s also a good idea to open a credit card in your name to begin building or rebuilding your personal credit score.

If you’re approaching retirement, it’s crucial to look at your Social Security benefits. If your marriage lasted 10 years or longer and you haven’t remarried, you may be eligible for a spousal benefit based on your ex-spouse’s work record. You can claim this benefit as early as age 62, as long as you’ve been divorced for at least two years.

Your home will likely be one of the most valuable assets in your divorce settlement. The typical route is to sell the house and split the proceeds, but you might want to explore and consider buying out your spouse’s share or selling your portion to them. Either way, this decision involves major tax and liquidity considerations, so consult your financial advisor before making any moves.

Tax considerations are critical during a divorce. You’ll need to evaluate whether you should file taxes jointly or separately, as each option has its own pros and cons. Filing jointly may offer more tax benefits, but if your spouse misrepresents income or deductions, you could be held liable. Filing separately might limit your deductions, but it can protect you from liability.

Speak with a tax professional to explore the best options for your unique situation. Divorce can be an emotional rollercoaster, and it’s easy to rush to a settlement just to move on. But don’t make hasty decisions — understanding the long-term financial impact is essential.

Certain assets, such as a family business or complex investment portfolios, will take more time to divide fairly. Therefore, it’s important not to rush through these negotiations. Seek expert guidance from your advisors early on, so you don’t miss any important financial considerations.

Too often, people rely solely on their attorney to handle all aspects of their divorce. By creating a team including your attorney, your accountant, your financial advisor, your banker and an insurance agent, you’ll be far better able to assess the long-term impact of various scenarios on all aspects of your financial future.