Financially Preparing for Divorce: 5 Steps You Can Take Today

Jodie Graham
Jun 2
4 min read

Updated: 4 days ago

Divorce changes everything, including your financial life. Whether this decision was mutual, sudden, or long overdue, the reality is that separating your finances is one of the most complex and often emotional parts of the process.

Person in striped shirt working at desk with laptop, calculator, and charts. A small plant and coffee cup are nearby. Bright, focused ambiance. Calculating her finances.

You might be asking yourself:

Where do I even start?
Will I be okay on my own?
What should I be doing now to avoid a financial mess later?

This is not just about dividing assets or figuring out support payments. It is about making sure you are not left scrambling when it is all finalized. Financial preparing for divorce is not something to delay until the court orders are in place. The sooner you begin, the more options and clarity you will have.

Not just during the separation, but long after it.This guide walks you through five practical steps you can take today to get financially prepared. No jargon. No overwhelm. Just a clear path forward.

1. Take Stock of What You Have

The first step is understanding your full financial picture. That includes everything you own, owe, earn, and spend. It is a process of gathering, not fixing, so don’t worry if it feels messy right now.

Start by collecting:

Bank account statements (chequing, savings, joint, individual)
Credit card balances
Mortgage or lease details
Loan documents (car loans, lines of credit, personal loans)
Income tax returns and pay stubs
RRSPs, TFSAs, pensions, and investment statements
Insurance policies
Household bills and ongoing expenses

If your former partner handled most of the money, this step is especially important. You need to know what is registered in your name, what is shared, and what liabilities could follow you. Pull your credit report through Equifax or TransUnion. It is free and gives you a snapshot of all accounts tied to your name.

Do not skip this part. A solid financial plan starts with knowing where you stand, no matter how uncomfortable it may feel at first.

2. Build a Budget That Reflects the Life Ahead

Budgeting after divorce is not about cutting back on everything. It is about creating a financial plan that reflects your new circumstances and aligns with your values.

Start by writing down your fixed expenses:

Housing (rent or mortgage)
Utilities
Childcare
Transportation
Insurance

Then, look at your variable expenses:

Groceries
Dining out
Subscriptions
Clothing
Personal care

Use real numbers wherever possible. If you are not sure, look back at your bank statements from the past three months. Be honest about what you spend and where your money actually goes.

As Barack Obama once said, “A budget is more than numbers on a page; it is an embodiment of our values.” In other words, this is your chance to decide what matters most. If you are rebuilding, your values will lead the way, not just your income.

Whether you use a spreadsheet, budgeting app, or pen and paper, the goal is to build a realistic picture of your day-to-day financial life post-divorce.

3. Separate and Secure Your Finances

As you move through the separation process, it is essential to start establishing financial independence.

Here are a few key steps:

Open your own bank account if you haven’t already
Redirect your income to that account
Apply for a credit card in your own name (to help build or rebuild credit)
Begin saving an emergency fund, even if it is small to start
Review your online banking access and change passwords where necessary

Take time to go through all shared accounts and identify what needs to be closed, separated, or monitored. If you are concerned about money being moved without your knowledge, speak to your lawyer about appropriate steps.

Also review your insurance policies. If your former spouse is still listed as a beneficiary, that may need to change. The same goes for your will, power of attorney, and any other legal documents. Small, proactive moves now can protect you from larger issues later.

4. Get Professional Guidance

Divorce has long-term financial consequences, so it is worth consulting experts who understand the process and the stakes.

Start with:

A divorce coach: They provide emotional support, help you stay focused during difficult conversations, and guide you through decisions and transitions. Some divorce coaches also have a financial background and can support you in understanding your options and organizing your finances.
A Certified Divorce Financial Analyst (CDFA): They can help you model scenarios, compare settlement options, and forecast your future cash flow.
A financial planner: They can assist with budgeting, investments, insurance, and retirement planning post-divorce.
A family lawyer or collaborative divorce professional: They will guide you through your legal rights and obligations in a Canadian context.

If you are worried about costs, look for professionals who offer flat-fee or consultation-based services. The right advice now can save you thousands and give you far more peace of mind.

Trying to navigate this alone can leave you vulnerable. Surround yourself with people who are trained to help you protect your financial future.

5. Plan for the Life You Are Building

Divorce is not just about untangling your past. It is also about designing what comes next.

Start thinking about:

Where you want to live, and what you can afford
What kind of work-life balance you want
Whether you want to go back to school or shift careers
What financial independence really looks like for you

Create short-term goals (for the next six to 12 months) and long-term ones (for the next three to five years). Maybe you want to build your savings, start a side business, or finally pay off debt. Write it down and put numbers behind it.

You do not have to have it all figured out today. But beginning to shape a vision for your future will influence the financial decisions you make during your divorce. Let that vision guide you.