Question 1

How is property divided in a divorce?

Accepted Answer

Property division in divorce depends on your state. Most states follow equitable distribution, meaning marital assets are divided fairly (but not necessarily 50/50) based on factors like each spouse's income, length of marriage, and contributions. Nine community property states (including California and Texas) generally split marital assets 50/50. The Onward Divorce Financial Forecaster models your specific asset mix and estimates how division might look in your situation.

Question 2

Will I have to pay alimony or spousal support after divorce?

Accepted Answer

Whether you'll pay or receive alimony (also called spousal support or maintenance) depends on the income gap between spouses, the length of the marriage, each spouse's earning capacity, and your state's guidelines. In many states it also depends on need: a spouse who can cover their own living costs may receive little or nothing. Longer marriages and larger income gaps generally result in higher or longer-lasting support. The Onward Forecaster uses your income information to estimate a likely spousal support range.

Question 3

What happens to retirement accounts like a 401(k) or IRA in a divorce?

Accepted Answer

Retirement accounts accumulated during the marriage are typically considered marital property and subject to division. A 401(k) or pension is usually divided using a Qualified Domestic Relations Order (QDRO), which allows funds to be transferred to the other spouse without early withdrawal penalties. IRAs are divided via a transfer incident to divorce. The portion earned before the marriage may be considered separate property and excluded from division.

Question 4

Can I afford to keep the house after divorce?

Accepted Answer

Keeping the house after divorce requires being able to refinance the mortgage in your name alone and afford ongoing costs (mortgage, taxes, insurance, and maintenance) on a single income. Many people find that buying out their spouse's equity plus carrying costs on one income is financially unsustainable. The Onward Forecaster models both scenarios (keeping vs. selling the home) so you can see which option leaves you in a stronger financial position.

Question 5

How much does divorce cost financially?

Accepted Answer

The financial cost of divorce includes legal fees (which range from a few thousand dollars for an uncontested divorce to $50,000+ for a contested one), asset division, potential spousal or child support, and the ongoing cost of maintaining two households instead of one. Beyond legal fees, the biggest long-term financial impact is usually the restructuring of income, housing, and retirement savings across two separate lives.

Question 6

How do I create a budget after divorce?

Accepted Answer

Post-divorce budgeting starts with understanding your new monthly income (including any support payments), then mapping fixed expenses like housing, utilities, and insurance, followed by variable expenses. The biggest shifts are usually in housing (you may need to downsize or move) and health insurance (if you were covered under a spouse's plan). The Onward Divorce Financial Forecaster generates a personalized projected monthly budget based on your situation.

Question 7

What is the difference between marital property and separate property?

Accepted Answer

Marital property generally includes assets and debts acquired by either spouse during the marriage, regardless of whose name is on the account. Separate property includes assets owned before the marriage, inheritances, and gifts received by one spouse, though these can become marital property if commingled. In divorce, only marital property is subject to division; separate property typically stays with the original owner.

Question 8

How long does it take to get a financial picture of life after divorce?

Accepted Answer

The Onward Divorce Financial Forecaster takes about 10 minutes to complete. It asks about your income, assets, debts, real estate, vehicles, and retirement accounts, then generates a personalized forecast showing estimated asset division, spousal support ranges, and a projected monthly budget, all for free.

Question 9

How is child support calculated?

Accepted Answer

Child support is set by state guidelines, not a single national formula. Most states use one of two models: the income shares model (which combines both parents' incomes and divides the support obligation in proportion to each parent's share) or the percentage of income model (which applies a set percentage of the paying parent's income). Common factors include each parent's income, the number of children, the parenting time split, and costs like health insurance and childcare. Because the rules vary by state, two families with identical incomes can owe very different amounts.

Question 10

What is the difference between community property and equitable distribution states?

Accepted Answer

The nine community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin) generally treat marital assets and debts as owned 50/50, so they are usually split evenly. The remaining states follow equitable distribution, which divides marital property fairly but not necessarily equally, weighing factors like each spouse's income, the length of the marriage, age, health, and contributions to the household. Equitable does not mean equal; one spouse may receive more than half.

Question 11

How does the length of the marriage affect a divorce settlement?

Accepted Answer

Marriage length is one of the most influential factors in a settlement. Longer marriages tend to produce more intertwined finances, a stronger case for longer or permanent spousal support, and division that leans closer to equal because both spouses are seen as having built a shared life. Shorter marriages more often end with each spouse keeping closer to what they brought in, and support, if any, tends to be shorter in duration. The Onward Forecaster factors marriage length into both its asset-division estimate and its spousal support range.

Question 12

Is alimony taxable?

Accepted Answer

For divorces finalized on or after January 1, 2019, alimony is not tax deductible for the paying spouse and is not counted as taxable income for the receiving spouse under federal law, a change made by the Tax Cuts and Jobs Act. For divorces finalized before 2019, the older rules may still apply, where payments were deductible by the payer and taxable to the recipient. State tax treatment can differ, so it is worth confirming the rules in your state.

Question 13

How are debts divided in a divorce?

Accepted Answer

Debts taken on during the marriage are generally treated as marital debts and divided along with assets, even if only one spouse's name is on the account. This can include mortgages, car loans, credit cards, and personal loans. In community property states, marital debt is typically shared equally; in equitable distribution states, it is divided fairly based on factors like who benefited and each spouse's ability to pay. Note that a divorce decree assigning a debt to one spouse does not remove the other's obligation to the original lender, so refinancing or closing joint accounts is often necessary.

Question 14

What is a QDRO and when do I need one?

Accepted Answer

A Qualified Domestic Relations Order (QDRO) is a court order that lets a portion of an employer retirement plan, such as a 401(k) or pension, be transferred to a former spouse without triggering early withdrawal penalties or immediate taxes. You need a QDRO whenever a workplace retirement plan is being divided in a divorce. IRAs do not require a QDRO; they are split through a process called a transfer incident to divorce. Getting the paperwork right matters, because an incorrectly drafted order can delay the transfer or create unexpected tax consequences.

Divorce Financial Forecaster

Welcome back!

Get a preview of your post-divorce reality.

About Your Situation

Income

Your Income

Spouse's Income

Real Estate

Vehicles

Financial Assets

Pre-Nuptial Agreement

Bank Accounts

Investments & Other

Business Interests

Retirement Accounts

Debts

Credit Card Balances

Student Loans

Other Debts

Monthly Expenses

Housing

Other Properties

All Other Expenses *

Essentials

Transportation

Lifestyle

Financial

Health & Life Insurance

Health Insurance

Life Insurance

Child Support

Parenting Time

Monthly Costs & Obligations

Your Financial Forecast

Primary Home Scenarios

Additional Properties

Vehicle Division

Financial Asset Division

Assets Summary

Debt Division

Post-Divorce Net Worth Estimate

Post-Tax Income Estimates

Estimated Spousal Support (sometimes called alimony)

Estimated Child Support

Your Projected Monthly Budget

Insurance Considerations

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