Divorce often comes down to money, and walking into it without a clear financial picture can leave anyone vulnerable. In her Divorce Hour segment with Ilyssa Panitz, Christie Whitney, CERTIFIED FINANCIAL PLANNER™ and Senior Vice President of Wealth Management at Rebalance, shares how to build that picture and protect what matters most. She starts with a basic financial blueprint: assets, debts, household expenses, and the bills that must be paid and when. In many couples, one person manages the investments or the bills while the other is less involved, so this step helps both sides understand the new reality and negotiate what is fair. Christie also recommends a regular check-in with a financial advisor, ideally one who is not also advising the former spouse, since one advisor serving two newly separate households can be a conflict of interest. For those in a gray divorce who may receive an inheritance, she offers an important reminder: inherited money placed in a joint account can, in most states, become a joint asset of the marriage. Keeping it separate is a choice, but it should be an informed one.
Christie then turns to saving when budgets are tight. Her first step is a small emergency fund of $2,000 to $5,000, building toward six months of essential expenses for a single-income household or three months for a dual-income one, so a broken car or surprise medical bill does not lead to credit card debt. From there, she encourages contributing to a 401(k), especially when an employer match is available. Small changes add up: a few lunches out or coffee runs each week can free up $150 to $200 a month. Christie also cautions against tapping retirement savings early. Withdrawals from a traditional 401(k) or Individual Retirement Account (“IRA”) before age 59½ generally mean income taxes plus a 10% penalty, with a few exceptions, such as certain 401(k) withdrawals starting at age 55. Retirement assets divided through a qualified domestic relations order (“QDRO”), however, can move between spouses without triggering taxes. Her final advice is a budget that separates must-pay expenses like housing, transportation, and food from discretionary spending, where most of the room to adjust can be found. Listen to the part the second episode here, and find more planning insights at rebalance360.com/divorce.
