As the calendar year winds down, many of the tasks associated with a divorce or separation process naturally slip into the “later” pile. For individuals in transition, however, this quarter offers a strategic opportunity to get ahead of the curve—closing out the year with clarity, structure and control. Whether you are currently in the process, planning for a potential divorce, or recently separated and preparing for what’s next, the following checklist is designed to help you wrap up key items before December 31 and enter the new year with purpose.
Important reminder: This article offers general information only and does not constitute legal advice. Please consult with a qualified family‑law attorney regarding your specific situation.
1. Gather and Organize Your Financial Archive
One of the most fundamental steps in any separation or divorce involves establishing a clear, complete picture of your financial life. Without this foundation, negotiations, disclosures and planning can become slow, costly or tilted unfavourably.
Key tasks for year‑end:
- Pull together the last 3‑5 years of tax returns, W‑2s/1099s, bonus/commission statements and business income (if applicable). Having these early gives you clarity around income trends and supports disclosure. Fidelity+1
- Collect statements for all bank accounts, brokerage accounts, retirement plans (401(k), IRA, pension), real estate valuations, vehicle titles and any other assets. DivorceNet+1
- Catalog all outstanding debts — mortgages, HELOCs, vehicle loans, personal loans, student loans, credit‑card balances and other liabilities. DivorceNet
- Secure a current credit‑report pull on both you and any joint accounts; review for accuracy and items in the joint name. Merrill Edge
- Create a central, secure file (physical or encrypted digital) for all of these materials so they are referenced easily during counsel consultations or settlement discussions.
Completing this task before December 31 means you begin the new year with updated figures (including year‑end statements) rather than scrambling post‑holidays. It also positions you to make informed decisions instead of reacting under pressure.
2. Review Support Orders and Related Agreements
If you have existing support orders—whether child support, spousal (alimony) support or temporary orders—this is a smart moment to review them in light of year‑end changes (taxes, benefits, investments, cost of living).
Checklist items:
- Examine whether your existing orders reflect your current income or expense circumstances. If your bonus, commission or investment income fluctuates, ask your attorney whether a review or modification is prudent. Financial Planning Association
- Check correspondence or updates from your ex‑spouse (or their counsel) and determine whether any obligations or agreements may require adjustments before the new year.
- If you’re anticipating changes (e.g., a relocation, career shift, business sale, new child‐related expense), notify your attorney now so that formal amendments or filings can be evaluated.
- Ensure you have documentation of any support payments made this year; build your ledger so the record is clean and defensible.
Taking stock before year‑end helps ensure that 2026 begins with the correct baseline and that any oversight of obligations doesn’t carry forward unchecked.
3. Update Your Benefits, Estate & Insurance Paperwork
Often overlooked until it’s too late: the administrative side of separation. As of December 31, certain benefits may shift, life insurance and retirement beneficiary designations may require attention, and estate documents may no longer reflect your post‑marriage intentions.
- Action items:
- Review life‑insurance policies, workplace benefits and retirement‑plan beneficiary designations. If the policy or plan allows, update to reflect your changed status.
- Evaluate employer‑sponsored health‑insurance coverage. If you’ve been on a spouse’s plan, determine whether COBRA, your employer’s plan or an individual plan will apply next year.
- Update your will, living will, power of attorney (health & financial) and other estate‑planning documents if they still reference your former spouse or fail to reflect your new reality.
- If you own real estate jointly or hold titles with your spouse’s name, consult your attorney about whether a title transfer or quit‑claim deed should be executed timely (in some cases prior to year‐end to sync with tax or asset planning).
Addressing these items before December 31 helps ensure that you begin the new year operating independently—with clarity about your coverage, designations and protections.
4. Consider Tax Implications and Set Up for the Coming Year
Year‑end brings tax deadlines and planning opportunities. For divorcing or newly separated individuals, being proactive now may reduce surprises and help you plan for the year ahead.
Key considerations:
- If you expect alimony or child‑support changes, discuss with your accountant or attorney how these payments will be reported or deducted (where applicable) under current tax law.
- Review investment accounts (capital gains, dividends) and retirement distributions taken or planned for 2025: timing may affect your tax bracket, cash‑flow needs or settlement discussions.
- Determine if the marital home is being retained, sold or transferred; the December 31 snapshot may affect property‑tax planning, state tax treatment or other obligations.
- Devise a budget or cash‑flow plan for 2026 that reflects your single‐household scenario (if this applies): include anticipated income, support obligations, new housing or child‑care costs, tax‑withholding changes and savings targets.
- Coordinate with your attorney whether any asset transfer deadlines or value assessments should be locked in by December in order to align with settlement strategy
The year‑end period is a strategic moment for tax clarity and financial planning; delaying until January often means missed opportunities or less flexibility.
5. Draft an Action Plan for the New Year
Beyond closing the current chapter, thoughtful next‑step planning sets the tone for how you will move forward. Use this time to define your roadmap for 2026 and beyond.
Plan‑building steps:
- Establish specific milestones: e.g., by Q1 2026, finalise asset division; by Q2, update estate‑planning documents; by mid‑year, finalize custody/parenting schedule adjustments.
- Identify the professionals you will engage in the coming months: your family‑law attorney, financial planner, tax advisor, real‑estate advisor (if applicable), and perhaps a parenting coach or mediator. Contact and schedule‑block time in your calendar now.
- Develop a realistic personal budget aligned with your new living arrangement: housing, taxes, insurance, retirement savings, child/education costs, and discretionary spending.
- Review your network of support—emotional, practical, professional. Separation and divorce are not just legal events; they impact lifestyle, identity and future goals. Having clarity, resources and support in place is as important as the legal tasks.
- Set a check‑in date in early 2026 (e.g., January or February) to review this plan with your attorney and adjust as necessary based on how your calendar‑year and case progress.
By designing next steps first, you reinforce control and move from reactive to proactive.
Final Thoughts
If you are navigating divorce or separation in the Triangle region—and preparing for an important transition—leveraging this year‑end window gives you a significant advantage. By wrapping up documentation, reviewing support and benefits, assessing tax strategy and mapping your path forward, you start the new year anchored in clarity and preparedness.
At Gailor Hunt Davis Taylor & Gibbs, we understand that each situation is unique. While this checklist offers a framework, we encourage you to reach out to our family‑law team for a tailored conversation about how these tasks apply to your circumstances. Timing matters—and beginning now can make all the difference.
Here’s to closing out 2025 with purpose and stepping into 2026 with confidence.
