Divorce affects every part of your life: your emotions, your routines, your children, and your future. But the financial hit? That one can take your breath away.
One of the biggest myths about divorce is that people get rich off it. You’ve probably heard the snide comments about women “taking half the money” or men “paying through the nose.” But here’s the truth: Divorce doesn’t make anyone rich. It makes most people poorer.
Let’s talk about four big reasons why divorce often leaves people financially worse off. These aren’t just theories. I’ve seen them play out over and over again with the women I work with.
1. Two Households, One Income
This one is simple math. During the marriage, one household had one set of bills: one mortgage or rent payment, one utility bill, one grocery budget. Even if both spouses worked, the household shared those expenses.
After divorce, the same income is now being stretched to cover two of everything. Two places to live. Two sets of furniture. Two internet bills. Two sets of kids’ clothes, backpacks, and bedroom setups. Most people underestimate how much more it costs to live separately. It doesn’t just double the bills, it adds new ones. Maybe you need childcare now because you’re working full-time. Or maybe you’re paying for therapy, legal fees, or even a new car to replace the one your ex kept.
This is where the squeeze really begins. And it’s not a short-term problem. Many women feel this financial pinch for years after the divorce is final.
2. Legal Fees Eat Into Your Assets
Divorce attorneys aren’t cheap. Even in the most amicable divorces, you’ll be paying thousands of dollars to get it done right. In high-conflict cases, especially those involving custody battles or hidden assets, those fees can spiral into tens or even hundreds of thousands of dollars. Think about it: every hour your attorney spends on emails, calls, or court appearances is time you’re being billed for. And if your ex is dragging things out intentionally or refusing to cooperate, you’re paying the price. (Literally!)
Legal fees often come straight out of your savings, retirement accounts, or home equity. That’s money you were counting on for your future, now eaten up by the divorce process itself.
3. Asset Division Often Isn’t Fair
You might think splitting everything 50/50 sounds fair, but divorce rarely plays out that cleanly. Maybe your ex hides assets or runs up debt you didn’t know about. Maybe you get the house but don’t have enough income to keep up with the maintenance and mortgage. Maybe he gets the retirement account while you get the checking account, and five years later, you realize the short-term liquidity wasn’t worth sacrificing long-term stability.
Even when everything looks evenly divided, you can still come out behind. Why? Because it’s not just about what something is worth on paper, it’s about what it does for you financially over time. Divorce is full of tough financial tradeoffs, and it’s easy to make decisions under pressure that hurt you in the long run.
4. Lost Earning Power
This one hits especially hard for stay-at-home moms or women who took lower-paying jobs to keep the family schedule running. After divorce, you may be stepping back into the workforce after years away. Or maybe you’re working more hours than ever but still not making enough to cover everything. It takes time to rebuild a career, update your skills, or move up the pay scale.
Even if you receive alimony or child support, it rarely replaces a full-time income. And if your ex stops payingor never pays at all, you’re stuck trying to make ends meet with less than you need. Your earning potential doesn’t bounce back overnight. In some cases, it never fully recovers.
So, What Can You Do About It?
You can’t avoid every financial hit in divorce, but you can be smart and strategic. That starts with getting organized, understanding your finances, and having a plan.
That’s exactly what the Divorce STRATEGY Guide helps you do. You only get one chance at your divorce settlement. Make sure you’re not leaving money on the table.
