Divorcing in January? Don't Let Your Finances Be the First Casualty

Divorcing in January? Don't Let Your Finances Be the First Casualty

By Kristen Shearin, JD, CDFA® On 01/01/2026

January has a reputation. It’s the season of fresh starts — gym memberships spike, planners fly off the shelves, and vision boards get taped to refrigerators. Everyone’s chasing that “new year, new me” energy.

It’s also the season of divorce. In fact, family law attorneys often call January “divorce season” because filings consistently rise right after the holidays. For many, the New Year feels like the clean slate they’ve been waiting for.

But here’s the catch: just like New Year’s resolutions, divorce without a strategy can backfire fast. Signing up for a gym doesn’t make you fit, and filing for divorce doesn’t guarantee a better life — not if your finances unravel in the process.

The emotional toll of divorce is obvious, but the financial toll? That’s the sneaky resolution-breaker. Without the right plan (and the right support), your money becomes the first casualty of a January divorce — with ripple effects that last far longer than the holiday credit card hangover.

Why Finances Blow Up In January Divorces

• Holiday spending hangover. Just like overeating in December makes January diets harder, December’s credit card bills show up in January — and money fights quickly escalate into divorce filings.

• Tax season is looming. Think of it like skipping leg day: ignore deductions, exemptions, or refunds, and the imbalance will catch up with you.

• Rushed decisions. Resolutions fail when we sprint instead of pacing ourselves. In divorce, rushing to “just split everything” is one of the costliest mistakes you can make.

The “Hidden” Casualties of Divorce Season

1. Lost paperwork. Ever start a resolution strong, then realize you don’t even know where your sneakers are? Same with divorce: those bank statements, tax returns, and retirement balances you desperately need suddenly vanish.

2. Short-term thinking. Grabbing the house feels like grabbing a quick-fix diet shake — but can you sustain the mortgage, taxes, and upkeep long term?

3. Budget blindness. Resolutions fail when people underestimate the daily grind. Divorce is no different: two households cost more than one, and many are shocked at how fast their salary gets stretched thin.

What About No Fault Divorce?

Most states in the U.S. allow no-fault divorce, meaning you don’t have to prove wrongdoing (like infidelity) to file. While this makes the legal process smoother, it doesn’t automatically make the financial process fair. Whether you’re divorcing in a no-fault divorce state or not, you’ll need to evaluate spousal support, alimony, child support, and asset division — the financial equivalents of healthy habits you can actually stick to.

What Is Alimony (and Spousal Support)?

Alimony (also called spousal support) is like the meal plan of divorce finances: it’s meant to provide stability and balance when one spouse has been the main breadwinner. But it looks different depending on the “lifestyle” of the marriage:

• Alimony after 20 years of marriage is like long-term training — more substantial and ongoing.

• Short-term marriages might involve smaller, transitional support.

• States use different definitions (spousal support, spousal maintenance, alimony), but the principle is the same: creating financial equity.

And just like fitness plans, no one-size-fits-all. That’s why you need a CDFA® to crunch the numbers for your situation.

Divorce Statistics Don’t Lie

When you look at divorce statistics and the top reasons for divorce, money issues consistently rank near the top. It’s the financial equivalent of the treadmill gathering dust by February — people know it’s important, but they avoid facing it.

Why do people divorce? Sometimes it's love lost. Often, it’s budget battles. And if money contributed to the breakdown of the marriage, it will almost certainly become a sticking point in the divorce process.

A Smarter Approach to Divorce Finances

Here’s how to avoid becoming a financial casualty of divorce season (and avoid being another failed January resolution):

• Collect documents early. Like setting out your workout clothes the night before, get tax returns, W-2s, bank statements, and retirement accounts organized now.

• Think equitable, not equal. A $100,000 401(k) is not the same as $100,000 in checking once you factor in taxes and liquidity. It’s like comparing protein shakes to ice cream — same calories, totally different impact.

• Pause before you sign. Resolutions fail when people rush. Divorce settlements fail when people sign without projecting 10, 20, or 30 years ahead.

• Bring in the right guide. A Certified Divorce Financial Analyst® is your financial personal trainer. We don’t just hand you a plan — we help you stick to it, adjust it, and make sure it works long term.

Final Spin: Don’t Divorce Without a CDFA

The truth is that divorce is more than a legal event — it’s a financial transformation. And just like resolutions, you won’t reach your goals without a plan, accountability, and a little expert guidance.

That’s exactly what a CDFA® provides. Think of us as the personal trainers of divorce finances: helping you pace yourself, avoid costly mistakes, and build long-term strength.

You don’t have to do this alone — and you shouldn’t.

Tagged with: divorce season, cdfa, january divorce, alimony, spousal support

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