Summer Vows and Split Paths: Financial Planning for Marriage and Divorce

By Brandon Miller–

Ah, summer—the season of sunshine, signature cocktails … and a surge of wedding bells. Whether you’re tying the knot on a beach or in a backyard, this time of year often marks the beginning of a new chapter in love and partnership. But while wedding planning typically focuses on florals and first dances, it’s also a critical time to get your financial life in order. And, on the flip side, if your relationship is taking a different turn, this is equally the time to be practical and prepared—because divorce, too, has financial implications that can affect your future well-being.

Let’s look at both sides of the aisle.

Getting Married: Financial Steps for a Solid Start

1. Merge (or Don’t) with Intention
Will you combine finances, keep things separate, or do a hybrid? There’s no one-size-fits-all answer, but the key is open communication. Discuss spending styles, debt, and savings goals.

2. Update Estate Documents & Beneficiaries
Once you’re legally bound, your spouse may have rights to your assets—whether you intended that or not. Update your will, power of attorney, and health care directives. Review beneficiaries on retirement accounts, life insurance, and bank accounts.

3. Review Tax Filing Status
As a married couple, you’ll likely file jointly, which can have significant tax advantages—or not, depending on your combined income. A tax pro can help determine your best option.

4. Health Insurance & Benefits
Getting married may open a special enrollment window for switching health insurance plans. Coordinate benefits to maximize value; sometimes one partner’s coverage is better for both.

5. Talk Goals—Big and Small
Whether it’s buying a home, traveling the world, or starting a family, your shared dreams have financial price tags. Build a joint financial plan that supports them.

If You’re Getting Divorced: Plan First, React Later

Not every love story ends with a “happily ever after,” and if divorce is on the horizon, emotions can run high. But from a financial standpoint, staying grounded and proactive can make all the difference.

The Road to Divorce: Tackle the Emotional First, Then Financial

Don’t rush decisions—take time to process before making major financial moves. Bring in objective third parties (like a financial planner or lawyer) to guide you with a clear head.

As for practical matters, if possible, address living arrangements before the situation becomes contentious. Secure separate housing, if possible.

It’s also a good time to button up your passwords and privacy. Change all logins for your accounts and devices, especially anything financial or shared.

Estate Planning
Update wills, healthcare proxies, and beneficiary designations to reflect your new status as a single individual.

Health Insurance
If you were covered under your spouse’s plan, research COBRA or other coverage options as soon as possible.

Social Security
If you were married for at least 10 years and never remarry, you may be eligible for benefits based on your ex’s record—without impacting their benefit.

Timing Considerations

• California has a mandatory 6-month waiting period.

• Your marital status on December 31 determines your tax filing status for the entire year.

Redefining Your Financial Life, Budget & Cash Flow
With two households, expenses shift dramatically. Build a new budget that reflects your solo lifestyle.

Spousal Support
If there’s a significant income gap, plan how money will flow post-divorce, whether through alimony or negotiated support.

Dividing Assets (CA Edition)

California is a community property state, meaning assets acquired during the marriage are typically split 50/50. But that doesn’t always mean each account is split in half.

•  Equal ≠ Identical: $1M in a taxable account isn’t equal to $1M in a Roth IRA—consider taxes and liquidity.

• Valuation Date: Assets are valued at the time of separation, not when the divorce is finalized.

Real Estate
Options include selling, buying each other out, or temporary shared ownership for the sake of children.

Equity Compensation
For vested vs. unvested stock matters, get a clear picture of the current and future value.

Pensions
Determine how much the non-employee spouse is entitled to and when they can receive it.

The Marital Settlement Agreement

This is the blueprint for your financial and custodial arrangements going forward. Almost everything is negotiable, but be thoughtful as renegotiation is rare unless there’s a major life change.

Children and Custody

•  Decide on custodial arrangements and how child support will be structured.

•  Clarify who can claim children on their tax return—it can’t be both of you.

Marriage and divorce both bring financial complexity, but also opportunity—for clarity, for a new plan, and for the life you want to build. Whether you’re walking down the aisle or through a courtroom, take the time to get the advice and support you need. And remember: your financial life doesn’t just reflect your past—it shapes your future.

This material presented by Brio Financial Group (“Brio”) is for informational purposes only and is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product. Facts presented have been obtained from sources believed to be reliable, however Brio cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. This information may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance, and actual results or developments may differ materially from those discussed. No investor should assume future performance will be profitable or equal the previous reflected performance. Any reference to an index is included for illustrative purposes only, as an index is not a security in which an investment can be made. They are unmanaged vehicles that serve as market indicators and do not account for the deduction of management fees and/or transaction costs generally associated with investable products. The S&P 500 Total Return Index represents U.S. stock returns. This includes 500 leading companies in the U.S. and is widely regarded as the best single gauge of large-cap U.S. equities, where dividends are reinvested. The holdings and performance of Brio client accounts may vary widely from those of the presented indices. Brio does not provide legal or tax advice, and nothing contained in these materials should be taken as legal or tax advice. Advisory services are only offered to clients or prospective clients where Brio and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Brio Financial Group unless a client service agreement is in place.

Brandon Miller, CFP®, is a financial consultant at Brio Financial Group in San Francisco, specializing in helping LGBT individuals and families plan and achieve their financial goals. For more information: https://www.briofg.com/

Money Matters
Published on July 31, 2025