Divorce finances, explained in plain English.

Money paid by one spouse to the other for financial support after a separation or divorce. It's sometimes called spousal support or spousal maintenance depending on the state. It's not automatic — a court has to order it, or both spouses have to agree to it. The amount and how long it lasts depends on things like how long you were married, what each person earns, and what state you live in.

Temporary financial support paid from one spouse to the other while the divorce case is still going through the court. It ends the moment the final divorce decree is signed. Pennsylvania is one state that uses this term specifically, but the concept — paying support during the proceedings — exists in most states under different names.

When something you own becomes worth more over time. In divorce, the question is whether that increase in value happened during the marriage — and if so, whether it counts as marital property that gets divided. Generally, if a marital asset appreciates, that growth is marital property. If a separate asset appreciates due to market forces alone, it often stays separate — but if your spouse's efforts contributed to the growth, courts may treat some of it as marital.

Anything with monetary value — your home, car, bank accounts, retirement accounts, investments, business interests, jewelry, or personal property. In a divorce, all assets get classified as either marital (subject to division) or separate (stays with the owner). The classification depends on when and how you got it.

An unusual custody arrangement where the children stay in the family home full-time and the parents rotate in and out. The idea is to minimize disruption for the kids. It's rare because it requires both parents to maintain a separate residence when it's not their turn — which is expensive — and it requires an unusually cooperative relationship between ex-spouses.

A short-term form of alimony — available in Florida and a few other states — designed to help a spouse transition from married life to single life. It covers specific, identifiable needs like paying rent while waiting for the marital home to sell. It can last a maximum of two years and cannot be modified once it's set.

Regular payments made by one parent to the other to help cover the cost of raising the children after separation. It's calculated using a state formula — not a guess. Most states use both parents' incomes to figure out the amount. It covers basics like housing, food, clothing, and healthcare — but childcare and medical costs are often added on top.

A federal law that lets you continue your ex-spouse's employer health insurance for up to 36 months after a divorce. You pay the full premium yourself — no employer subsidy — which makes it expensive. But it buys you time while you find your own coverage. You have 60 days from losing coverage to sign up.

When separate property — money or assets you owned before the marriage — gets mixed together with marital property until it's hard to tell which is which. For example: depositing an inheritance into a joint checking account and spending from it over the years. Once funds are commingled, it can be very difficult to prove what portion is still separate. Courts may treat it all as marital property if you can't trace it clearly.

A property division system used in 9 states — including California, Texas, and Arizona — where assets and debts acquired during the marriage are generally considered equally owned by both spouses. When the marriage ends, community property is typically divided 50/50. Assets owned before marriage, or received as gifts or inheritances, are usually separate property and stay with whoever owns them.

When spouses can't reach agreement on one or more major issues — property division, alimony, child custody, child support — and need a judge to make the decision. Contested divorces take longer, cost significantly more in legal fees, and give you less control over the outcome. Most divorces settle before going to trial, even if they start out contested.

A calculation used to determine what share of a pension or retirement benefit is marital property. It compares the years the employee worked during the marriage to their total years of work before retirement. For example: if someone worked 30 years total and 20 of those years were during the marriage, the coverture fraction is 20/30 — meaning roughly two-thirds of the pension benefit is marital and subject to division.

The date spouses stopped living as a married couple. This date matters financially because in most states it marks the end of the period during which assets and debts accumulate as marital property. Anything acquired after the date of separation may be considered separate property. The definition of this date varies by state — some states require physical separation, others look at intent.

The final court order that ends a marriage. It contains all the terms of the divorce — how property is divided, what support is owed, custody arrangements, and more. Once a judge signs it, the divorce is final and legally binding. Also called a divorce decree or final judgment of dissolution.

When one spouse deliberately wastes, hides, or misuses marital assets — especially after the marriage has started falling apart. Examples include gambling away joint savings, making large unexplained purchases, or transferring money to someone else. Courts in many states can compensate the other spouse for dissipated assets by awarding them a larger share of what remains.

A North Carolina-specific term for changes in asset value that happen after the date of separation but before the divorce is finalized. If your home goes up in value during that period, that appreciation is divisible property — still subject to equitable distribution. The same applies to decreases in value.

A form of alimony paid for a defined period of time. It's now the most common type in many states — including Florida since its 2023 alimony reform. The length is typically tied to how long the marriage lasted. Unlike permanent alimony, it ends on a specific date unless a court modifies it first.

The legal process by which a minor child becomes independent from their parents before reaching the standard age of majority. When a child is emancipated — through marriage, military service, or a court order — child support obligations generally end. The specifics depend on the state and what the divorce agreement says.

The property division system used in 41 states. A judge divides marital property in a way that's fair given the specific circumstances of the marriage — which may or may not be 50/50. Factors like how long the marriage lasted, what each spouse contributed, and each person's financial situation all go into the decision. "Equitable" means fair, not equal.

The difference between your home's current market value and the remaining balance on your mortgage. If your home is worth $500,000 and you owe $300,000, your equity is $200,000. In a divorce, equity is what actually gets divided — not the home's total value.

The branch of the court system that handles divorce, child custody, child support, alimony, and related matters. Some states have dedicated family courts; others handle these cases in general civil courts. Family court judges specialize in these cases and apply family law statutes and precedents.

Your tax status for the year — Married Filing Jointly, Married Filing Separately, Single, or Head of Household. Your filing status is determined by whether you were legally married on December 31 of the tax year. If your divorce finalizes before December 31, you file as single (or head of household if you qualify) for that year. If it's still pending on December 31, you're still legally married for tax purposes for the whole year.

A Michigan-specific government office that administers and enforces child support, custody, and parenting time orders. The FOC handles wage withholding, tracks payments, and can take enforcement actions — like suspending a driver's license — when support isn't paid. All child support payments in Michigan flow through the Michigan State Disbursement Unit, not directly between parents.

A tax filing status available to single or divorced parents who paid more than half their household costs for the year and had a dependent child living with them for more than half the year. It offers lower tax rates than filing as Single — so it's worth understanding whether you qualify.

Assets that one spouse conceals or misrepresents during divorce proceedings to avoid having them counted as marital property. Common tactics include understating income, overpaying taxes to get a refund later, deferring bonuses, or transferring money to a friend or relative. Courts take this seriously — if hidden assets are discovered, the offending spouse typically faces significant consequences including a less favorable settlement.

Legal protections that limit a court's ability to force the immediate sale of the family home in a divorce, especially when children are involved. Texas is well known for its strong homestead protections under the state constitution. The specifics vary significantly by state.

When a court assigns a hypothetical income to a spouse based on what they're capable of earning — not what they're actually making. This comes up when a spouse is voluntarily unemployed, underemployed, or has deliberately reduced their income to lower a support obligation. A judge might say: "You could earn $60,000 a year based on your education and work history" and calculate support based on that figure instead of actual earnings.

The most common method states use to calculate child support. Both parents' incomes are combined to determine what a child would have received if the family stayed together, and each parent pays their proportional share. Used in most states including California, Florida, New York, Illinois, and many others.

A promise in a divorce agreement where one spouse agrees to be responsible for a specific debt and to protect the other spouse from any financial harm if that debt isn't paid. Important caveat: indemnification only binds the spouses to each other — it doesn't stop a lender from coming after both of you if the debt goes unpaid.

Any debt where both spouses signed as borrowers — a joint mortgage, joint credit card, or co-signed loan. In divorce, joint debts are typically divided between spouses. But assigning a debt to one spouse in a divorce decree doesn't remove the other spouse's name from the lender's records. If the assigned spouse doesn't pay, the lender can still pursue both.

The standard Texas courts use to divide community property. Instead of requiring a strict 50/50 split, judges divide the marital estate in a way that's "just and right" given the circumstances — which can include fault, earning differences, and other factors. This means a Texas divorce can produce an unequal split even though Texas is a community property state.

A court-recognized arrangement where spouses live separately and have formal agreements about finances, support, and children — but are still legally married. Not available in all states. Some couples use legal separation as a step before divorce; others use it long-term for religious or insurance reasons. It does not automatically become a divorce.

A single, one-time alimony payment instead of ongoing monthly payments. Some couples prefer this for a clean financial break — once it's paid, there's no ongoing financial relationship. A key feature: lump-sum alimony typically cannot be modified later and usually is not affected by the recipient remarrying.

Assets and debts acquired by either spouse during the marriage — regardless of whose name is on the account or title. This includes income earned, homes purchased, retirement contributions made, and debts taken on during the marriage. Marital property is what gets divided in a divorce. What counts as marital property varies slightly by state.

The legal document that records every financial decision in a divorce — who gets which assets, who pays which debts, how much support is paid and for how long, and how custody is handled. Once both spouses sign it and a judge approves it, it becomes a binding court order. Most divorces are resolved through an MSA rather than a trial.

The deliberate misuse or destruction of marital assets — similar to dissipation. Examples include gambling with joint savings, destroying shared property, or making gifts to a romantic partner using marital funds. Courts may compensate the other spouse by awarding them a larger share of whatever remains.

A process where a trained, neutral mediator helps both spouses work through disagreements and reach their own agreement. The mediator doesn't make decisions — they facilitate the conversation. Mediation is faster and less expensive than going to trial, and it gives both spouses more control over the outcome. Agreements reached in mediation still need to be approved by a judge.

A Texas-specific calculation of income used for child support. It includes wages, self-employment income, rental income, and other sources — minus certain deductions like federal taxes, Social Security, and health insurance premiums paid for the child. It is not simply take-home pay. Texas applies child support percentages to net resources up to a statutory cap, which increased to $11,700/month in September 2025.

A type of divorce where neither spouse has to prove the other did something wrong — like adultery or abuse — to get divorced. Most divorces today are no-fault. The most common grounds are "irreconcilable differences" or "irretrievable breakdown of the marriage." All 50 states allow some form of no-fault divorce, though a few still allow fault-based grounds that can affect financial outcomes.

When one spouse keeps an asset entirely and the other receives something of equivalent value in return, rather than dividing each asset individually. A common example: one spouse keeps the family home while the other keeps a larger share of the retirement accounts. The total value should be roughly equal — but the individual assets aren't split.

A lien placed on the family home that gives the departing spouse a legal claim to their share of the equity — without requiring an immediate sale or refinance. Used mostly in Texas, it allows one spouse to stay in the home while the other gets paid their equity share later (typically when the home is eventually sold or refinanced).

A detailed written document that spells out how parents will share time with their children — including the regular schedule, holidays, school breaks, and how major decisions about the child's education, healthcare, and activities get made. Most states require a parenting plan as part of any divorce involving children.

A Latin term meaning "while the litigation is pending." Pendente lite orders are temporary court orders issued during the divorce process — covering things like temporary support, temporary custody, and temporary use of the family home — until the final divorce decree is entered.

A retirement benefit — typically offered by government employers, schools, and some unions — that pays a fixed monthly amount for the rest of your life after you retire. Unlike a 401k, you don't have an account balance you can see grow. The benefit is calculated based on your salary and years of service. Dividing a pension in divorce requires special court orders — a QDRO for private pensions, or a state-specific equivalent for public pensions.

A North Carolina-specific form of temporary financial support paid from the higher-earning spouse to the lower-earning spouse from the date of separation through the final alimony determination. It's a financial bridge while the full divorce case unfolds. Once the court makes a final alimony decision, PSS ends.

A legal contract signed before marriage that specifies how assets and debts would be divided if the marriage ends. A valid prenup can override state default divorce rules. For a prenup to be enforceable, both parties generally need to have had independent legal advice, disclosed their finances honestly, and signed it voluntarily without pressure.

A specific type of court order that instructs a retirement plan administrator to transfer part of one spouse's retirement account to the other — without triggering taxes or early withdrawal penalties. Required for 401(k)s, 403(b)s, and private pensions. Not required for IRAs (which use a simpler process). Each retirement plan needs its own QDRO.

An Illinois-specific court order required to divide pensions from Illinois public retirement systems — including IMRF, TRS, and SERS. A standard QDRO does not work for these plans. The QILDRO must comply with the specific requirements of each Illinois pension system.

Alimony paid for a specific period of time to allow the receiving spouse to gain education, job training, or work experience to become financially self-supporting. It requires a clear rehabilitation plan in many states. It's the most commonly awarded type of alimony in states that have moved away from long-term or permanent support.

The process of replacing an existing mortgage with a new one. In divorce, refinancing is typically required when one spouse keeps the home and needs to remove the other spouse's name from the mortgage. A divorce decree alone does not accomplish this — only a refinance does. The spouse keeping the home must qualify for the new mortgage based on their income alone.

Assets owned by one spouse that are generally not subject to division in divorce. Typically includes: assets owned before the marriage, gifts received by one spouse individually during the marriage, and most inheritances. The key is keeping separate property clearly separate — commingling it with marital funds can turn it into marital property over time.

The term several states use instead of "alimony" for financial support paid by one spouse to another after separation or divorce. The concept is identical — it's just called by a different name depending on the state. Illinois, New York, and Minnesota are among the states that use "maintenance" rather than "alimony."

A third common term for the financial support one spouse pays the other after separation. Alimony, spousal support, and spousal maintenance all refer to the same concept. The term used depends on the state.

The process used to divide an IRA (Individual Retirement Account) in a divorce. Unlike 401(k)s, IRAs don't require a QDRO. Instead, the divorce decree must include specific language about the transfer, and the funds move directly from one IRA to another. If done correctly, no taxes or penalties are triggered. If done incorrectly — for example, by cashing out and writing a check — you'll pay income tax and possibly a 10% early withdrawal penalty.

When spouses cannot reach an agreement through negotiation or mediation, a judge holds a trial and makes the decisions for them — on property division, alimony, custody, and support. Divorce trials are time-consuming, expensive, emotionally draining, and unpredictable. Most contested divorces settle before trial. When a trial does happen, both parties lose significant control over the outcome.

A divorce where both spouses agree on all major issues — property, support, custody, debt — before going to court. The judge reviews and approves the agreement without a trial. Uncontested divorces are significantly faster, less expensive, and less stressful than contested ones. They require honest communication and compromise from both sides.

When your mortgage balance is higher than the current market value of your home. In a divorce, an underwater home creates a complication — there's no equity to divide, and selling the home would leave both spouses with a deficit. Options include short sale (with lender approval), continuing to co-own until values recover, or negotiating with the lender.

When an employee becomes entitled to their employer's contributions to their retirement account — typically after a certain number of years of service. Before vesting, those employer contributions may be forfeited if you leave. In divorce, unvested retirement benefits can still be considered marital property and subject to division — even if you haven't yet earned the right to keep them.

The process of determining the fair market value of an asset. In divorce, accurate valuation matters enormously — if an asset is mispriced, the division won't actually be equal. Homes are typically valued through an appraisal or comparative market analysis. Business interests, pensions, and complex investments often require a financial expert or forensic accountant to value properly.

A court-ordered mechanism where child support or alimony is automatically deducted from the paying spouse's paycheck by their employer and sent to the receiving spouse. Wage withholding is the default method in most states for child support. It ensures consistent payment without relying on the paying spouse to remember or choose to pay.

Reckless, negligent, or intentional destruction or dissipation of marital assets — especially after the marriage has begun breaking down. Gambling away savings, destroying property, or making unusual large gifts to third parties are examples. Courts in most states can compensate the other spouse for wasted assets when dividing the remaining estate.