Divorce is one of life's most significant financial transitions, especially for high-net-worth individuals whose balance sheets often include business interests, concentrated investments, deferred compensation and complex estate structures.
Financial planning during divorce is not just about dividing assets. It’s about protecting wealth, minimizing tax exposure and establishing a solid strategy that supports your financial future.
At Hancock Whitney, our financial planning team works closely with clients and their advisors to bring clarity to complex financial situations, helping you make informed decisions that preserve both liquidity and long-term growth.
Before negotiations begin, a comprehensive inventory of assets, liabilities, and income streams is essential.
Document all financial accounts and ownership structures.
This includes brokerage and retirement accounts, private investments, trusts, deferred compensation, stock options, and business equity. High-value personal property, such as real estate portfolios, art, or collectibles, should also be cataloged and professionally valued where appropriate.
Identify joint debt and contingent liabilities.
Mortgages, lines of credit, partnership guarantees, and business loans may still carry your obligation even if assigned to a spouse in a settlement, making liability management a critical component of divorce planning.
Account for complex or illiquid assets.
Privately held businesses, carried interest, or restricted shares often require specialized valuation and structuring to ensure equitable division without forced liquidation.
For a more detailed outline of assessing your current financial situation, read our Insights blog, The First Step in the Financial Planning Process.
Once your financial picture is clear, proactive planning can protect your interests and maintain stability.
For high-net-worth individuals, divorce planning requires a disciplined evaluation of how wealth is structured, taxed, and sustained, not simply how assets are divided. Decisions made during this period can materially affect long-term liquidity, income stability, and legacy goals.
Spousal support is often one of the most consequential elements of a settlement. The form of support, whether ongoing payments, a lump-sum arrangement, or asset-based offset, should be assessed through both a cash flow and tax lens to understand its true long-term cost or benefit.
Child-related financial planning frequently extends beyond statutory support formulas. Agreements may address private education, healthcare, and future college funding, all of which should be coordinated with an overall investment and cash management strategy to avoid undermining long-term objectives.
Real estate decisions, including the marital residence and investment properties, require careful analysis of ongoing carrying costs, liquidity needs, and opportunity cost. In many cases, reallocating equity into a diversified portfolio may provide greater flexibility and financial resilience following the divorce.
Even sophisticated investors can make costly decisions under stress:
Dividing complex wealth requires coordinated expertise. A divorce attorney protects your legal interests, while a financial advisor helps evaluate settlement scenarios, structure asset transfers, and create a sustainable post-divorce financial plan. Tax professionals and valuation specialists may also be essential for privately held businesses or intricate estate structures.
Hancock Whitney’s financial planning team works alongside your professional advisors to help you:
Divorce is not simply an endpoint—it is a financial reset. With the right planning, you can protect what you’ve built and move forward with confidence.
If you are navigating divorce and need experienced guidance, our team can help you develop a strategy tailored to your financial complexity and long-term priorities.
The information, views, opinions, and positions expressed by the author(s), presenter(s), and/or presented in the article are those of the author or individual who made the statement and do not necessarily reflect the policies, views, opinions, and positions of Hancock Whitney Bank. Hancock Whitney makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information presented.
This information is general in nature and is provided for educational purposes only. Information provided and statements made should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. Hancock Whitney Bank encourages you to consult a professional for advice applicable to your specific situation.
Hancock Whitney offers investment products, which may include asset management accounts, as part of its Wealth Management Services. Hancock Whitney Bank is a wholly owned subsidiary of Hancock Whitney Corporation.
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