Will I be OK? A step-by-step guide to seeing if your divorce settlement covers your life
You’re so close. The hard decisions are behind you, the paperwork’s almost done, and everyone’s ready to sign. But that little voice is still there, asking, “Am I actually going to be okay?”
tl;dr
If you’re about to sign your divorce papers but still wondering, “Will I really be OK?”—this guide walks you through how to find out. Step by step, you’ll see how to check your settlement against your real-life budget, stress-test your numbers, and make sure you’re set up for stability (and peace of mind).
List everything you’re getting in the divorce settlement
Start by writing down everything that’s yours. (Working in a spreadsheet is ideal but old-fashioned pen and paper are OK, of course.) List all the assets, debts, income sources, and support payments you’ll have after the divorce. Include:
Bank accounts
Retirement savings
Investment accounts
Property (like real estate or vehicles)
Any alimony or child support
Any debts in your name
Make sure you include the current dollar value of each item, not what it was worth five years ago. You're doing all of this so you can see exactly what your financial starting line looks like after the divorce settlement. This list isn’t just busywork; you’re finding out your baseline.
Next, understand how each asset gets taxed
Not all money is taxed the same. Know whether each asset has already been taxed or comes with a future tax bill. For example:
A 401(k) is taxed when you withdraw from it later
A Roth IRA is usually tax-free when you take it out
Brokerage accounts can trigger capital gains taxes if you sell investments
Selling a home can also have tax consequences
The goal is to avoid surprises down the road. You want to make sure something like $100,000 is actually worth $100,000. You don’t want the surprise of it being worth $80,000 after taxes.
Understand what’s ready to use now and what’s not
Some assets are liquid (easy to use now), and some are not (illiquid). Some examples include:
Cash and checking accounts: These are your most liquid assets. That means the money is right there when you need it. You can swipe your debit card, take out cash, or pay a bill instantly. No penalties, no paperwork, no waiting. If your assets were people, cash and checking are the friends who show up at your door in five minutes when you say, “I need help.”
Real estate or home equity: Yes, these have value (sometimes a lot of value), but you can’t just use that money unless you do something big, like sell the home, refinance the mortgage, or take out a home equity loan. So even if your name’s on the deed, that money’s not ready for everyday use. Think of your house as a locked savings chest. It’s worth something, but you need the right key, the right timing, and a bit of effort to get to what’s inside.
Retirement accounts: They come with strings attached. That means you can't just take the money out whenever you want. At least, not without jumping through hoops. Retirement accounts are like a secret savings stash with a password only “future you” knows. You can’t get to it whenever you want, but when the time’s right, it’s there to help you live your best life.
If most of what you’re getting isn’t accessible right away, you could end up asset-rich but cash-poor. It’s best to be diversified and have various kinds of assets: some money you can use immediately (cash/checking), some that grow over time (investments/retirement), and some that can build wealth long-term (real estate).
Compare the real value of what you’re getting, not just the number on paper
This part of the checklist is about knowing what your money can really do for you, not just how big it looks on paper. Two assets might both say $100,000, but that doesn’t mean they’re equal.
A $100,000 brokerage account can be accessed now and may have minimal taxes.
A $100,000 traditional IRA will be taxed when withdrawn and may be subject to penalties if used early.
This is where people often lose money without realizing it. They think, “Oh, I’m getting equal value” but they’re trading flexibility for long-term money they can’t use yet.
Build a post-divorce budget based on your real life now, not the one you used to have
This isn’t about guilt or restriction. It’s about creating a clear, honest plan so you feel financially safe, supported, and in control.
Start with the basics:
Your income from work or support
Mortgage or rent
Insurance
Childcare or education costs
Utilities, groceries, transportation
Any new expenses you didn’t have before, like therapy or legal support
Knowing your month-to-month reality helps you spot gaps before they become crises.
Stress-test your numbers with some “what-if” fire drills
Life happens. Don’t be surprised, be prepared. Divorce is already a major transition, so make sure your finances can handle any bumps that may pop up.
Ask yourself things like:
What if child support ends earlier than expected?
What if your car dies or your roof starts leaking?
What if you lose your job or your hours get cut?
Your plan doesn’t have to be perfect, but it does need to hold up when life throws you curveballs.
Plan for health insurance and long-term care
If you were on your spouse’s health insurance, now’s the time to figure out what’s next.
Can you stay on their plan through COBRA for a little while? It’s often expensive, but it can buy you time while you sort out your next step.
Will you need to shop for your own coverage through the marketplace? Compare plans, look closely at premiums and deductibles.
Are you budgeting for new out-of-pocket costs? Think co-pays, prescriptions, or higher deductibles. This is your money now, and you’ve got to plan for it.
If you’re divorcing later in life, you’ve got to think long-term. How will you handle healthcare in retirement? Do you need long-term care insurance or a plan for unexpected medical needs?
Even if this part feels overwhelming or boring, it’s one of the most important steps to protect yourself post-divorce.
Don’t forget your future needs, even when the present feels like a lot
You might be in survival mode right now but know that you deserve more than just getting by. Make space for long-term goals, even if they feel far off.
Start small, but start.
Keep contributing to retirement. Even if it’s less than before. Future-you still needs that nest egg.
If you have kids, think ahead to tuition or big education costs. Even if that’s years away.
Rebuild your emergency fund. You’re on your own team now, and that cushion is key.
Start saving for the big dreams. A new home, a fresh start, visiting your best friend across the country.
Don’t stop dreaming—plan for a future that excites you. It may feel out of reach right now but it’s coming. You’re still allowed to want beautiful things.
Watch for red flags in your divorce settlement
Look closely at the language in your settlement.
Is it vague about who pays what?
Does it gloss over certain assets?
Are you giving up something valuable without knowing what it's really worth?
If anything feels murky, ask for clarification before signing. You can’t fix a bad deal easily once it’s finalized.
Get clarity on your financial responsibilities
Be crystal clear about what you’re responsible for and for what your ex is.
Who’s paying off the joint credit card?
Who’s covering the kids’ extracurriculars or uninsured medical costs?
What happens if the house doesn’t sell as quickly as expected?
Ambiguity now can lead to conflict or unexpected bills later. You don’t want to go back to court later arguing over who owes whom for that $400 graphing calculator your kid used twice.
The verdict: Will you be OK?
If your income covers your expenses and your plan holds up when you test it with “what-if” scenarios, you’re going to be OK. Not by chance, but because you planned for it.
If you notice any gaps, risks, or unclear details, now is the time to address them. Renegotiate, adjust, and ask questions before everything is finalized. Because once you sign your divorce settlement, it’s hard to change.
Add another layer of protection with a CDFA
If you’re still wondering, “Will I be OK?” you don’t have to. CURO can make sure the answer is: Yes, you are going to be OK.
This material is intended for informational/educational purposes only and should not be construed as investment, tax, or legal advice. CURO Wealth Management does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.