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529 plan. A tax-advantaged college savings account controlled by its owner, not the child beneficiary.
A
account owner. The person who controls a 529: withdrawals, beneficiary changes, and use of the funds.
add-backs. Personal or one-time expenses added back to reported profit to reveal a business’s real earnings.
add-ons. Child-specific costs added to base support, such as health insurance, childcare, and extraordinary expenses.
after-tax value. What an asset is really worth once the tax eventually owed on it is subtracted; the fair basis for trades.
alimony. Post-divorce support paid by one spouse to the other; also called spousal maintenance or spousal support.
alimony recapture. IRS rules that could claw back front-loaded, deductible-era alimony; mainly a concern for pre-2019 decrees.
alternate payee. The non-employee spouse who receives a share of a retirement plan under a QDRO.
anchoring. The strong pull the first number in a negotiation exerts on where it ends up; counter it by re-anchoring to a fair figure.
annulment. A court ruling that a valid marriage never legally existed, available only on narrow grounds such as fraud or bigamy.
appraisal. A professional valuation of an asset such as a home, business, or collectible.
arrears. Unpaid support that accumulates (often with interest) and generally cannot be erased retroactively.
asset concealment. Deliberately hiding or understating income or assets to keep them out of a divorce division; a form of perjury on a sworn disclosure.
asset-based approach. Valuing a business as its assets minus liabilities; fits asset-heavy firms but undervalues profitable service businesses.
authorized user. A person allowed to use a credit account without being the primary owner; can often be removed by the account holder.
B
BATNA. Your Best Alternative To a Negotiated Agreement: the likely outcome if you do not settle, minus its cost and risk; your walk-away line.
beneficiary. The person an account (such as a 529) is meant to benefit; a 529 beneficiary has no control over the account.
beneficiary designation. The named recipient on an account or policy; it often overrides a will and must be updated manually after divorce.
business interest. An ownership stake in a company, LLC, or professional practice; often a large and undercounted marital asset.
business valuation. The expert process of estimating what a business is worth; a contested range, not a single figure.
buyout. Paying a spouse their share of the home’s equity to take sole ownership, usually funded by refinancing.
C
capital gains exclusion. A tax break letting you exclude up to 250,000 dollars (single) or 500,000 dollars (married filing jointly) of gain on a primary-home sale.
catch-up contribution. Extra retirement contributions allowed above normal limits once you reach a certain age, helping late starters.
centralized exchange. A company (such as Coinbase or Kraken) that holds crypto and its records, and can be compelled by subpoena.
Certified Divorce Financial Analyst. A financial professional (CDFA) trained in the money side of divorce: projecting settlements over time and comparing assets after tax.
child support. Formula-based, non-waivable support that belongs to the child; not deductible by the payer or taxable to the recipient.
child tax credit. A per-child tax credit; in divorce, who claims it follows custody and any Form 8332 release, not who pays support.
CHIP. The Children’s Health Insurance Program, covering children in families whose income is above Medicaid but still modest.
COBRA. A federal law letting you keep an employer health plan after a qualifying event; up to 36 months after divorce, at your own full-premium cost.
coercive control. A pattern of behavior that dominates and isolates a partner, of which financial abuse is one common form.
cohabitation clause. A decree term reducing or ending alimony if the recipient lives with a new partner in a marriage-like arrangement.
COLA clause. A cost-of-living adjustment clause that raises support over time.
collaborative divorce. An out-of-court process where each spouse has a specially trained attorney and all agree to settle; if it fails, those attorneys must withdraw.
college support. Court-ordered payment toward a child’s college; available only in some states, so often handled by agreement.
commingling. Mixing separate property with marital money or assets so that a court may treat the once-separate property as marital.
community property. A system, used in a minority of states, in which marital property is generally owned equally and divided close to fifty-fifty.
contempt of court. A court’s power to compel obedience to its order, backed by penalties, used to enforce a decree.
contested divorce. A divorce in which the spouses disagree on one or more major terms and need help resolving the difference.
cost basis. What was originally paid for an investment; the balance above it is the taxable gain.
coverage gap. An uninsured stretch between old and new coverage; financially dangerous and to be avoided entirely.
Coverdell ESA. A tax-advantaged education savings account like a 529 but with tighter contribution limits.
coverture fraction. A formula for the marital share of a retirement benefit, based on service during the marriage over total service.
credit freeze. A free block, also called a security freeze, that stops new credit from being opened in your name until you lift it.
credit report. A record of your credit accounts and payment history kept by the credit bureaus; available free at AnnualCreditReport.com.
cryptocurrency. A digital asset (such as Bitcoin) treated as marital property subject to disclosure and division.
D
decree. The final divorce judgment: the binding legal contract, enforced by its words, that governs the parties for years.
deferred sale. An agreement to sell the home later, often co-owning until a set event such as a child finishing school.
defined benefit plan. A traditional pension that promises future income based on a salary-and-service formula, with no simple account balance.
defined contribution plan. A retirement account that is a pot of money with a current balance, such as a 401(k), 403(b), or IRA.
deposition. Sworn, out-of-court questioning of a person in person and on the record.
digital assets. Online or intangible holdings such as cryptocurrency, domains, monetized accounts, and rewards points.
discovery. The set of legal tools (written questions, document demands, depositions, subpoenas) used to compel financial and other information in a case.
dissipation. One spouse hiding, wasting, or transferring marital assets to keep them from the other; a court can undo it and count it against that spouse.
divorce. The legal ending of a marriage by a court, which also divides marital property and debt and sets any support and parenting terms.
divorce attorney. A lawyer who advises you on your rights, represents you, drafts and reviews agreements, and speaks for you in court.
E
early withdrawal penalty. An extra tax on retirement money taken out too early, on top of ordinary income tax; a key reason not to cash out.
embedded capital gains. The built-in gain in an investment, and the tax that comes due when it is sold.
emergency fund. Accessible savings that keep a surprise expense from becoming debt; the first savings goal after divorce.
enterprise goodwill. Goodwill tied to the business itself that would transfer to a buyer; generally divisible.
equitable distribution. A system, used in most states, in which a court divides marital property in a way it judges to be fair, which is not always equal.
estimated taxes. Quarterly tax payments on income without withholding, needed after divorce to avoid an underpayment penalty.
F
FAFSA. The federal financial aid application; it counts one parent’s income, and recent rules use the parent who provided greater support.
fair market value. What an asset would sell for today between a willing buyer and seller; the usual value standard in a divorce.
fee shifting. A decree clause making a non-complying party pay the other’s attorney fees to enforce the agreement.
filing status. How you file your taxes (single, head of household, married jointly or separately), set by your marital status on December 31.
financial abuse. The use of money as a tool of power and control over a partner; also called economic abuse, a common form of coercive control.
financial affidavit. A sworn court statement of assets, debts, income, and expenses filed under penalty of perjury; names vary by state.
financial disclosure. The legally required, honest exchange of each spouse’s income, assets, and debts, usually through sworn statements and records.
financial therapist. A professional who works at the intersection of money and emotion to support steadier financial decisions.
flat fee. A single set price an attorney charges for a defined service, often a simple uncontested divorce.
forensic accountant. A financial investigator who traces money, uncovers hidden income or assets, and values a business.
Form 8332. The IRS form a custodial parent uses to release the right to claim a child to the other parent.
fraud alert. A free notice on your credit file telling lenders to take extra steps to verify identity before opening new credit.
G
golden parachute. A large payment triggered by a change of control such as a merger, which can be a marital windfall.
goodwill. The intangible value of a business beyond its physical assets: reputation, relationships, and earning power.
H
hardware wallet. A small physical device (such as a Ledger or Trezor) that stores the keys to self-custodied crypto.
head of household. A favorable filing status for an unmarried person who paid over half a home’s cost and housed a qualifying dependent over half the year.
healthcare directive. A document naming who makes medical decisions for you if you cannot; update it after divorce.
home equity. A property’s value minus the mortgage balance owed on it; the amount actually shared in a divorce.
HSA. A Health Savings Account owned by one individual; marital balances can be divided by a tax-free transfer under the decree.
I
if-as-and-when. A division method paying the non-employee spouse their share of equity only if, as, and when it actually vests and pays.
imputed income. Income a court assigns to a parent who is voluntarily unemployed or underemployed, based on earning capacity.
income shares model. The dominant child-support method: combine both incomes, find the child’s need, and split it by each parent’s income share.
income-based approach. Valuing a business on its earning power by converting profit into a present value; often the fullest picture of a going concern.
income-driven repayment. A federal student loan plan basing the payment on income and household size, which can change after divorce.
index fund. A low-cost, diversified investment that tracks a market; a simple core for rebuilding investing.
injured spouse claim. An IRS remedy recovering your share of a joint refund seized to pay your spouse’s separate debt.
innocent spouse relief. An IRS remedy (Form 8857) that can separate your tax liability from a spouse who was dishonest on a joint return; you must apply.
interrogatories. Written questions in discovery that the other spouse must answer in writing and under oath.
inventory. A complete list of what a marriage owns, owes, and earns; the foundation for disclosure, negotiation, and settlement.
J
joint account. A bank or credit account owned by both spouses, from which either owner can generally withdraw or charge.
joint and several liability. A rule making each borrower on a joint debt independently responsible for the entire balance, not just half.
L
legal aid. Organizations that provide free or low-cost legal representation to people who qualify by income.
legal separation. A court arrangement in which spouses live apart and divide finances and responsibilities but remain legally married; not offered in every state.
liability. Money the marriage owes, such as a mortgage, loan, credit card balance, or tax debt.
lifestyle analysis. A forensic technique that reconstructs actual household spending and compares it to reported income to reveal hidden income.
limited-scope representation. Hiring a lawyer for specific tasks (such as reviewing an agreement) while you handle the rest yourself; also called unbundled services.
liquidation. Selling investments and splitting the cash, which realizes embedded gains and their tax.
litigation. Resolving disputes by presenting them to a judge, who makes the decisions after each side presents its case.
loan assumption. A rarer arrangement in which one spouse formally takes over the existing mortgage in their name, with lender approval.
long-term capital gain. Gain on an asset held more than a year, taxed at lower rates than a short-term gain.
lump-sum alimony. A single fixed payment (or set total) instead of open-ended monthly support, giving a clean break.
M
marital balance sheet. A mental model listing assets on one side and liabilities on the other, with income shaping support.
marital estate. The pool of marital property and debt that is subject to division in a divorce.
marital property. Property either spouse earned or acquired during the marriage, regardless of whose name is on it; generally divided in a divorce.
marital settlement agreement. The written agreement resolving a divorce’s terms, which becomes binding and governs once signed and entered.
market approach. Valuing a business by comparison to what similar businesses have actually sold for.
marketplace. The Affordable Care Act exchange (HealthCare.gov or a state exchange) that sells individual health plans with income-based subsidies.
mediation. A process in which a neutral third person helps spouses negotiate their own agreement; the mediator advises and guides but does not decide.
Medicaid. A program providing free or very low-cost health coverage to people below an income threshold, with no limited enrollment window.
N
net worth. What you own minus what you owe; the marital net worth is the real figure a settlement divides.
non-qualified deferred compensation. Pay an executive defers to future years (NQDC); generally cannot be divided by a QDRO, so it is offset or paid if-as-and-when.
normalized earnings. A business’s true earnings after adding back personal and one-time expenses; the basis for an income valuation.
O
offset. Giving up a claim to one asset (such as a pension) in exchange for another of equal present value.
on-chain analysis. Tracing crypto through the public blockchain using known wallet addresses, even when it is held in self-custody.
online dispute resolution. Conducting mediation or negotiation remotely through digital platforms; best for more straightforward cases.
P
partition. A court-ordered sale of jointly owned property, available when one co-owner refuses to sell.
pension. A defined benefit plan paying monthly income in retirement; valued and divided by sharing payments or by an offset.
percentage-of-income model. A child-support method basing support on a percentage of the paying parent’s income alone.
personal goodwill. Goodwill tied to the individual owner that leaves with them; in many states not divisible.
PITI. Principal, interest, taxes, and insurance; the core recurring cost of owning a home, before HOA dues and maintenance.
power of attorney. A document giving someone authority over your finances; reset it after divorce so an ex no longer holds it.
pre-existing condition. A health condition you already have; under the ACA, marketplace plans cannot deny coverage or charge more for it.
premium tax credit. An income-based subsidy that lowers the monthly premium of a marketplace health plan.
prenuptial agreement. An agreement before marriage making the financial understanding explicit; sensible protection before remarriage.
pro bono. Legal work done for free by volunteer attorneys for people who cannot pay.
protective order. A court order that protects a person from abuse or harassment and can carry financial protections alongside physical ones.
Q
QDRO. A Qualified Domestic Relations Order: a separate court order, approved by the plan, needed to divide an employer retirement plan.
QMCSO. A Qualified Medical Child Support Order requiring an employer health plan to enroll and cover the children.
qualifying life event. A status change, such as divorce, that unlocks special windows to enroll in or change health coverage outside open enrollment.
R
real property. Land and the buildings on it, such as a home, rental, or vacation property.
refinance. Replacing a mortgage with a new loan in one spouse’s name alone; the only sure way, besides a sale, to remove the other’s name.
rehabilitative alimony. Time-limited support to help a spouse become self-supporting, such as while retraining.
reimbursement alimony. Support that repays a spouse who funded the other’s education or training.
request for production. A discovery demand that the other side hand over specific documents, such as statements, returns, and business records.
restricted stock. Shares that carry conditions, such as a holding period, before they can be sold.
retainer. An upfront deposit an attorney draws against as they bill for their work.
reviewing attorney. A lawyer you keep to advise you privately and review an agreement before you sign, often used alongside mediation.
rollover. Moving retirement funds directly into another retirement account so the transfer is not taxed.
RSU. A restricted stock unit: a promise of company shares delivered to an employee as they vest.
S
secured credit card. A starter card backed by a deposit, used to rebuild individual credit through small, fully paid balances.
seed phrase. A list of 12 to 24 words that can restore a crypto wallet; possessing it is effectively controlling the wallet.
self-custody. Holding crypto yourself via a device or key rather than on an exchange, so there is no company to subpoena.
separate property. Property a spouse brought into the marriage, or received during it as a gift or inheritance meant for that spouse alone; generally not divided.
short sale. Selling a home for less than the mortgage balance, with the lender’s agreement to accept the shortfall.
side agreement. Any additional promise between spouses; unenforceable unless written into the decree.
source-and-use analysis. A forensic technique that traces where money came from and where it went, account by account, to expose hidden transfers.
special enrollment period. A limited window (generally 60 days) after a qualifying event during which you can buy a marketplace plan.
stock option. The right to buy company stock at a set price; taxed differently depending on whether it is an NQSO or an ISO.
subpoena. A legal order compelling a third party, such as a bank or employer, to produce records or testimony.
survivor benefit. A QDRO provision that keeps your share alive if your former spouse dies before it is paid; it must be demanded, not automatic.
T
tax-advantaged account. A retirement account taxed on withdrawal (traditional) or generally tax-free out (Roth).
taxable account. An ordinary brokerage account whose growth is taxed when investments are sold.
TCJA. The Tax Cuts and Jobs Act; for agreements after 2018 it made alimony neither deductible by the payer nor taxable to the recipient.
temporary alimony. Support paid while the divorce is pending (pendente lite), ending when the final order takes over.
temporary orders. Interim court orders that set the rules while a divorce is pending, such as temporary support, use of the home, and bill payment.
temporary support. Interim spousal or child support a court can order while a divorce is pending.
title search. A search of public land records to find recorded ownership, mortgages, liens, and undisclosed real estate.
transfer incident to divorce. The tax-free method of dividing an IRA under the decree, done as a direct trustee-to-trustee transfer or rollover.
U
UGMA UTMA account. A custodial account that is an irrevocable gift belonging to the child, not a marital asset to divide.
UIFSA. The Uniform Interstate Family Support Act, which lets a support order be enforced across state lines.
uncontested divorce. A divorce in which the spouses agree on all major terms and ask the court to formalize their agreement.
underwater. Owing more on the mortgage than the home is worth; also called negative equity.
unvested equity. Granted stock or options still subject to conditions; often marital to the extent earned during the marriage.
USFSPA. The Uniformed Services Former Spouses Protection Act, the federal law allowing state courts to divide military retired pay.
V
valuation date. The date a court uses to value an asset; critical for volatile holdings like stock and crypto.
vesting. The point at which granted equity becomes fully owned and can be held, sold, or exercised.
vesting cliff. A date on which a large block of equity vests all at once.
W
wage garnishment. Enforcing support by deducting it directly from the payer’s paycheck.
withholding. Tax taken from each paycheck; update your W-4 after divorce so it matches your new status and income.