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Financial Survival After Divorce for Firefighters

Writer's picture: Jim CarlsonJim Carlson
Desk with charts, calculator, orange hard hat, plants, and stationery. The setting is warm and organized, suggesting a workspace.

Divorce is tough. It’s a whirlwind of emotions, paperwork, and big life changes that can leave anyone feeling overwhelmed. For firefighters, the long hours and unpredictable schedules can make an already stressful situation even harder. But you don’t have to face it alone. With some thoughtful planning and guidance, you can take control of your financial future and come out stronger on the other side. Let’s talk about how to navigate the financial side of divorce with practical steps and a bit of clarity.


1. Take a Breath and Process the Emotional Side


Divorce isn’t just a financial event; it’s an emotional one too. Give yourself space to grieve and process. Lean on friends, family, or a counselor to help you sort through the feelings so you can approach the practical stuff with a clearer head. Big decisions are easier to make when you’re not carrying the full weight of the emotional toll alone.


2. Get a Handle on Your Finances


You can’t make good decisions about what comes next if you don’t know where you stand. Take stock of everything: your income, assets, debts, and benefits. Here’s what to look at:


  • Your Paycheck: Include overtime and side gigs.

  • Assets: Think bank accounts, retirement savings, your house, and any vehicles.

  • Debts: Credit cards, mortgages, and loans.

  • Benefits: Pension, health insurance, and deferred comp plans.


If you’re one of our clients, we can help you organize this information and make the process simpler, so you can focus on what’s next.


3. Understand What Happens to Your Pension


For firefighters, your pension is often one of your biggest financial assets. Unfortunately, it’s also something that might be split during a divorce. A Qualified Domestic Relations Order (QDRO) is usually required to divvy it up. This can get complicated, so it’s a good idea to work with someone who really understands firefighter pensions—like us. Our tools can help you model different scenarios so you can see how decisions today might affect your retirement.


4. Redo Your Budget


Your finances will look different after a divorce. Maybe you’ll have new expenses, like child support or alimony. Maybe your income won’t stretch as far when you’re managing a household on your own. A fresh budget can help you regain control. Here’s where to start:


  • Prioritize housing, transportation, and healthcare.

  • Cut back on things that don’t matter as much right now.

  • Start or rebuild your emergency fund.


Consider using tools or apps that simplify budgeting, so you can adjust as life evolves.


5. Update Your Insurance


Divorce changes a lot, including your insurance needs. Take a close look at these:


  • Life Insurance: Make sure the beneficiaries match your new situation.

  • Health Insurance: If you’re losing coverage through your ex, explore your options through work or the marketplace.

  • Disability Insurance: This is especially important for firefighters given the risks of the job.


Reviewing these policies regularly will keep you protected and give you peace of mind.


6. Prepare for Tax Changes


Divorce can make your taxes more complicated. Filing status, dependents, alimony—it all changes. Here’s what to keep in mind:


  • Your marital status as of December 31 determines how you file.

  • Decide who gets to claim the kids.

  • Understand how alimony impacts your taxes.


A tax professional can help you navigate these changes and ensure you’re taking advantage of all available deductions.


7. Protect Your Credit


Divorce can wreak havoc on your credit if you’re not careful. Here’s how to protect it:


  • Close joint accounts and open individual ones.

  • Pay off or refinance shared debts.

  • Monitor your credit regularly to catch any issues early.


By staying proactive, you’ll keep your credit score intact and set yourself up for future success.


8. Lean on Professionals


You don’t have to go through this alone. A financial planner, a family law attorney, and even a therapist can make a huge difference in how you navigate this transition. Professionals can provide clarity and peace of mind as you make decisions about your future.


9. Set New Goals


Divorce might mean letting go of some old dreams, but it’s also a chance to set new ones. Whether it’s rebuilding your savings, planning for retirement, or exploring new opportunities, start thinking about what’s next. Break your goals into manageable steps and track your progress.


Start small and build momentum toward a brighter financial future.


Final Thoughts


Divorce isn’t easy, but it doesn’t have to derail your future. By taking control of your finances and leaning on the resources available to you, you can navigate this transition with confidence. Remember, firefighters are built to handle challenges—this is no different.


If you’re feeling overwhelmed, we’re here to help. Let’s work together to build your brighter future. Schedule an Introduction Call to get started today.



 

Disclosures

This content is for informational purposes only and does not constitute legal, tax, or financial advice. Please consult a qualified professional for advice specific to your situation. Carlson Planning is not affiliated with or endorsed by any firefighter pension or benefit organizations. All tools and services mentioned are intended to provide general guidance and should not replace personalized advice.

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