Financial Planning During Divorce

Financial Planning During Divorce

If you're going through a divorce, it probably doesn't feel like a financial exercise. It likely feels personal, emotional, and uncertain. When significant assets are involved, it can also become one of the most important financial turning points of your life.

If you have meaningful income, investments, retirement accounts, or even a business, the biggest financial risks often come from decisions made during the divorce process before there is time to fully understand the long-term impact of those decisions.

It's also common that one spouse is less familiar with the assets than the other. If you are that spouse, it can understandably feel like you're at a disadvantage. Having a team that understands the process and can translate complex financial language can be both helpful and comforting.

At PYA Waltman Capital, we've walked alongside clients through the divorce process and through the years that follow. We've seen what works, what doesn't, and where people most often wish they had slowed down and asked different questions.

Why High-Asset Divorces Are More Complex

High-asset divorces often feel complicated because the assets themselves are rarely simple. You may be looking at:

• Pre-tax retirement accounts
• Taxable investment portfolios
• Real estate
• Life insurance with cash value
• Artwork or collectibles
• A business you helped build

On paper, a settlement may appear fair. In real life, outcomes can feel very different once taxes, cash flow, timing, and accessibility are considered.

Not All Dollars Are Equal

One of the most common mistakes is treating all dollars as if they are equal.

For example, a $1 million retirement account may appear equivalent to $1 million in cash or taxable investments. However, retirement accounts are typically pre-tax, meaning taxes will eventually reduce the amount available for spending.

Liquidity Matters

Liquidity is another important consideration. Business interests often produce income but cannot easily be sold. One spouse may receive an asset tied up in ownership while the other walks away with cash or highly liquid investments.

If these differences are not addressed upfront, they can create financial strain years later.

Retirement Accounts Require Careful Handling

Dividing retirement assets is not simply paperwork. Mistakes in structure or timing can lead to unnecessary taxes, penalties, or reduced flexibility in the future.

The Family Home and Cash Flow Reality

The family home can also become a financial burden. While keeping the home may feel emotionally reassuring, property taxes, maintenance, insurance, and ongoing costs can strain cash flow if income changes after divorce.

Many individuals also struggle to understand what their financial life will look like on their own. Walking through cash flow in detail can provide clarity around spending, saving, and income after divorce. That clarity often replaces fear with understanding.

Slowing Down Financial Decisions

Divorce is emotional, and that is unavoidable. The goal is to slow down important financial decisions, pressure-test different scenarios, and focus on what will support your life not just today but years into the future.

At PYA Waltman Capital, we work alongside your attorney to help you:

• Understand settlement options
• Identify tax and liquidity considerations
• Build clarity around cash flow and investments
• Gain confidence in your financial decisions

Beyond the Settlement

For many individuals, the settlement itself is only the beginning. Turning that settlement into a long-term financial plan is what creates stability moving forward.

A divorce settlement divides assets.
A financial plan helps you live with those decisions.

When individuals clearly understand their financial reality, know what future spending may look like, and align financial decisions with what matters most to them, the transition becomes much smoother.

High-asset divorce involves more than dividing accounts. It requires thoughtful planning, clear communication, and an understanding of how today's decisions will shape tomorrow's life.

If you are navigating divorce in Knoxville or East Tennessee, our team can help bring clarity to complex financial decisions and support you through a difficult transition with experience and perspective.

At PYA Waltman Capital, we help individuals move forward with confidence by aligning financial resources with their priorities now and into the future.