Financial Transition Support: Frequently Asked Questions

This website is for anyone navigating a major life transition (divorce, the loss of a spouse or partner, a significant career change, etc.) who wants to better understand the financial landscape they are facing. You do not need to have a financial background to benefit from these resources. My goal is to make financial concepts clear, accessible, and relevant to where you are in life.

 A CDFA is a financial professional trained specifically in the financial aspects of divorce, such as asset division, retirement accounts, tax implications, and long-term settlement impact. An attorney handles the legal process, while a CDFA focuses on helping you understand the financial picture — the two roles complement each other. Working with both can help ensure you are informed on all fronts.

It is important to collect documents such as tax returns, bank and investment account statements, retirement account statements, mortgage documents, pay stubs, and any records of debts or liabilities. Having a clear picture of both your assets and your spouse's assets is essential for understanding what is at stake. The earlier you gather these, the better prepared you will be.

A Qualified Domestic Relations Order (QDRO) is a legal document used to divide certain retirement accounts — like a 401(k) or pension — between spouses as part of a divorce settlement. Without a properly executed QDRO, you may lose your right to a share of those funds. Understanding how QDROs work is one of the most important financial literacy topics in any divorce involving retirement assets.

In the immediate aftermath, focus on locating key documents such as the death certificate, will, insurance policies, and account information. Notify relevant institutions — banks, Social Security, pension providers, and insurance companies — as soon as you are able. You do not have to do everything at once; prioritizing the most time-sensitive items first can help reduce overwhelm.

 Accounts held solely in your spouse's name will typically go through the probate process unless a beneficiary was named or the account was set up with a transfer-on-death designation. Banks and financial institutions will generally require a death certificate and, in some cases, legal documentation such as letters testamentary. An estate attorney can help guide you through this process.

As a surviving spouse, you may be eligible to receive your deceased spouse's Social Security benefit if it is higher than your own; this is known as a survivor benefit. Eligibility generally begins at age 60, or earlier if you are disabled or caring for a qualifying child. The rules around timing and how to claim can significantly affect the amount you receive over your lifetime.

When you leave a job, you generally have several options for your employer-sponsored retirement account: leave it where it is, roll it into your new employer's plan, roll it into an individual IRA, or cash it out. Understanding the differences between these options is an important part of protecting your long-term financial security.

A severance package typically includes a lump sum or continued salary payments for a set period, and may also include extended health benefits, outplacement services, or other provisions. It is important to understand what you are agreeing to, including any non-compete or non-disparagement clauses, before signing. Taking time to review the full terms carefully is always worthwhile.