Divorce Settlement Calculator

See a full Pro analysis with your settlement numbers

A divorce settlement is the agreement that divides a couple's assets, debts, and financial obligations. It can be reached through direct negotiation between spouses, through mediation with a neutral third party, or by a judge's order after trial.

Settlements typically address several major areas: division of property (the family home, retirement accounts, investments, and vehicles), allocation of debts (mortgage, credit cards, student loans), spousal support or alimony terms, and child support if children are involved.

The goal is to reach a division both parties can live with — or that a judge considers fair under the state's laws. Most divorces settle out of court. According to the American Bar Association, roughly 95% of divorce cases are resolved through settlement rather than trial. This is generally faster, less expensive, and less emotionally draining than going before a judge.

But reaching a settlement is only half the challenge. The other half is making sure that settlement actually works long-term. A deal that looks fair on paper today can leave one spouse financially vulnerable 10 or 20 years from now — especially after alimony ends, expenses rise with inflation, or retirement changes the income picture entirely. That's what a forward-looking projection helps you evaluate before you sign.

The United States has two systems for dividing marital property. Which one applies depends entirely on your state.

Community property states

Nine states follow community property rules: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In these states, most assets and debts acquired during the marriage are considered jointly owned and are generally split 50/50. Property you owned before the marriage, or received as a gift or inheritance during the marriage, is typically considered separate property and is not divided.

Equitable distribution states

The remaining 41 states and the District of Columbia follow equitable distribution. Assets are divided “fairly” but not necessarily equally. Judges consider factors like each spouse's income, earning potential, length of the marriage, age and health, and contributions to the marriage (including homemaking and childcare).

“Equitable” does not mean “equal.” A judge might award a 60/40 or even 70/30 split based on the circumstances. This makes outcomes less predictable than in community property states, but it also allows for more nuanced consideration of each spouse's situation.

Assets to account for

Include all marital assets: savings and checking accounts, retirement accounts (401(k), IRA, pensions — these often require a QDRO, or Qualified Domestic Relations Order, to divide), home equity, investment and brokerage accounts, vehicles, business interests, and stock options or RSUs. Each asset should be evaluated based on its after-tax value, not just its face value.

Debts to account for

Don't forget the other side of the balance sheet: mortgage balance, credit card debt, student loans, car loans, and medical debt. Debts acquired during the marriage are typically considered marital debt regardless of whose name they are in. How debt is divided varies by state, but you need to know the full picture to evaluate whether a settlement is truly fair.

Income sources

Map out all post-divorce income: salary, bonuses, freelance income, rental income, alimony (if receiving), child support (if receiving), and Social Security (especially important for older divorcing couples). Understanding your income timeline is critical — what happens when alimony ends? When can you claim Social Security? These transitions can create financial gaps if you haven't planned for them. Use our alimony calculator to estimate what you might receive or pay.

Expenses to be realistic about

Budget honestly for: housing (mortgage or rent), utilities, food, transportation, healthcare and insurance, children's expenses, and debt payments. Many people underestimate post-divorce expenses. Living as one household costs more than half of what you spent as two — you lose economies of scale on housing, utilities, insurance, and many other costs.

Enter these numbers into the calculator above to see whether your proposed settlement sustains your lifestyle through retirement.

Fighting for the house when you can't afford it. The family home may be your biggest asset, but it's also your biggest ongoing expense. Mortgage payments, property taxes, insurance, and maintenance on a single income can drain savings faster than people expect. Before insisting on keeping the house, run the numbers on keeping vs. selling.

Ignoring the difference between pre-tax and post-tax assets. A $500,000 house and a $500,000 401(k) are not equivalent. The 401(k) will be taxed when you withdraw from it — potentially leaving you with only $350,000–$400,000 in actual spending power depending on your tax bracket. Always compare assets on an after-tax basis.

Not accounting for inflation. $4,000 per month in expenses today becomes roughly $5,400 per month in 10 years at 3% inflation. Settlements that look adequate today can fall short over time, especially after alimony ends. A forward-looking projection accounts for this automatically.

Accepting a settlement out of exhaustion. Divorce is emotionally draining, and many people agree to terms just to be done with it. Running the numbers first takes a few minutes and can save years of financial stress. Use the calculator above before your next attorney meeting or mediation session.

You enter four things: your age, the total assets you will receive in the settlement, your monthly income, and your monthly expenses. The calculator also lets you add alimony details if applicable.

The tool projects your net worth year by year from now through age 90. It uses standard financial planning assumptions: 5% annual investment return and 3% annual inflation. These are conservative, widely used benchmarks in financial planning.

The projection shows whether your settlement sustains your lifestyle long-term or runs out — and if so, when. You can see whether your monthly income covers your expenses, what happens when alimony ends, and whether your assets can bridge any gaps. Results are instant, private, and free.