It can be easy to assume that divorce requires a full team of attorneys, financial professionals, and tax professionals. In reality, the appropriate level of support depends on the couple and their situation.
Some couples choose to handle much of the divorce process themselves rather than rely on professionals for every step. This is often referred to as a DIY divorce.
While a DIY approach may help reduce costs, it also places more responsibility on each spouse to understand the decisions being made and how those decisions could affect their finances in the years ahead. Before deciding whether a DIY divorce is right for you, it can be helpful to consider the complexity of your situation, what may be overlooked, and whether additional support may be worthwhile.
📌 Learn more about Divorce Financial Planning for Women
When Might a DIY Divorce Be an Option?
A DIY divorce may be an option when both spouses communicate well, agree on the major decisions, and have finances that are fairly easy to untangle.
For example, they may:
- Have a full picture of their income, expenses, assets, and debts
- Agree on how property and debts will be divided
- Have no significant disagreements about major divorce-related decisions
- Have no complex assets, such as a jointly owned business
- Feel comfortable completing the required paperwork
Divorce requirements vary by state, so couples should understand the applicable court procedures and forms before deciding how to proceed.
Why Do Some Couples Consider a DIY Divorce?
Cost is often one of the main reasons couples consider a DIY divorce. Rather than paying for professional involvement throughout the process, they may choose to manage much of it themselves.
However, the potential savings depend heavily on the couple’s circumstances. Both spouses need access to complete financial information and a clear understanding of what is being decided. If the finances are complex, important information is missing, or the spouses do not agree on the major terms, additional support may be worth considering.
What Can Be Overlooked in a DIY Divorce?
One of the challenges of a DIY divorce is looking beyond the immediate decisions and considering their long-term implications. Reaching an agreement is important, but so is understanding how the terms of that agreement could affect each spouse after the divorce is finalized.
For example, two assets with the same value today may differ in several important ways:
- How and when they may be taxed
- Whether they produce income
- How easily they can be converted to cash
- What they cost to own or maintain
- How their value may change in the future
A retirement account, family home, taxable investment account, and pension may have similar estimated values but serve very different purposes within a financial plan. Depending on the type of account, dividing retirement assets may also require specific legal and administrative steps, making it important to understand the implications before an agreement is finalized.
Divorce decisions are often made while people are focused on immediate concerns, such as where they will live or how they will cover expenses. Those needs matter, but they should also be considered alongside ongoing costs, access to cash, and longer-term financial goals.
📌 Learn more - 3 Financial Trade-Offs to Consider in a Divorce Settlement
Which Professionals Can Help During a Divorce?
Divorce often involves a range of legal, financial, and tax considerations. Depending on the issues involved, different professionals may provide different types of support.
- Divorce attorney: Provides legal advice based on your circumstances, explains your rights and responsibilities, and drafts or reviews legal documents. An attorney may assist with a particular issue or provide representation throughout the divorce process.
- Certified Divorce Financial Analyst® professional: Helps evaluate proposed settlement options and the financial trade-offs involved before a divorce agreement is finalized.
- CERTIFIED FINANCIAL PLANNER® practitioner: Looks beyond the settlement to help you prepare financially for life after divorce. This may include reviewing your cash flow, investments, retirement plan, insurance needs, and broader financial goals.
- Tax professional: Evaluates potential tax considerations related to investments, real estate, retirement accounts, business interests, and filing status. A tax professional can also help identify questions to address before financial decisions are finalized.
- Mediator: Serves as a neutral third party who guides discussions, helps spouses identify areas of agreement and disagreement, and supports them in working toward mutually acceptable terms. A mediator does not make decisions for the couple or represent either spouse.
- Legal aid or community organization: May provide free or lower-cost legal support to individuals who qualify. Available services may include help with legal questions, paperwork, and court procedures.
You may not need every or even any professional on this list. What matters is understanding the terms of your divorce, the decisions involved, and how they may affect your finances after the divorce is final.
When a DIY Divorce May Not Be the Right Fit
A DIY divorce may work well for some couples, but it is not for everyone. It can be harder to manage when spouses disagree on major issues, finances are complex, important information is missing, or one spouse feels uncertain about the decisions being made.
In these situations, the potential cost savings should be weighed against the value of professional guidance and the importance of understanding the agreement's financial implications. Decisions made today may affect your cash flow, retirement, and broader financial plan long after the divorce is final.
If you have decided that you would prefer professional guidance with the financial side of your divorce, we’re here to help. You can schedule a complimentary introductory meeting with our team in Glastonbury or Wilton, Connecticut, to discuss how different settlement options may affect your life after divorce.
Have a quick question instead? Send us a note.
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Kelsey Conklin is a CERTIFIED FINANCIAL PLANNER® professional and Certified Divorce Financial Analyst® professional who helps individuals and families plan for their financial future. Based in Glastonbury and Wilton, CT, she also specializes in financial planning for women, guiding her clients through divorce, widowhood, career transitions, caregiving responsibilities, retirement planning, investing, and managing longevity risks. As a female financial advisor, Kelsey is passionate about financial empowerment for women and provides personalized financial strategies designed to help women take control of their wealth with clarity. Whether you’re navigating major life changes or planning for retirement, she is committed to providing guidance tailored to your goals. Schedule a complimentary Women and Wealth introductory meeting with Kelsey and start building a financial plan designed for you.
This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete, it is not a statement of all available data necessary for making an investment decision and it does not constitute a recommendation.
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Any opinions are those of the author, and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice.