--- title: "Unemployment & Divorce: The Financial Considerations" description: In this post, we explore factors to consider when facing unemployment or underemployment during the divorce process. image: https://amf-divorce.com/hubfs/Imported_Blog_Media/qtq80-BiVPMT-768x512.jpeg --- ## A.M. Financial - [Services](https://amf-divorce.com/divorce-transition-services) - [Service Plan](https://amf-divorce.com/service-plan) - [Frequently Asked Questions](https://amf-divorce.com/frequently-asked-questions) - [Our Blog](https://amf-divorce.com/our-blog) - [About Amy](https://amf-divorce.com/about-amy) - [Contact Us](https://amf-divorce.com/contact-us) - [Services](https://amf-divorce.com/divorce-transition-services) - [Services](https://amf-divorce.com/divorce-transition-services) - [Service Plan](https://amf-divorce.com/service-plan) - [Frequently Asked Questions](https://amf-divorce.com/frequently-asked-questions) - [Our Blog](https://amf-divorce.com/our-blog) - [About Amy](https://amf-divorce.com/about-amy) - [Contact Us](https://amf-divorce.com/contact-us) [Book a Meeting](https://calendly.com/amymahlenmelander/consultdivorcefinancialplanning) # Unemployment & Divorce: The Financial Considerations March 04, 2024 3 minutes to read Divorce is undoubtedly a challenging period, and when coupled with a significant shift in employment, the financial and emotional pressure can be overwhelming. The impact of losing your source of income not only takes a personal toll on you and your former spouse, it also affects how crucial aspects of your divorce, such as property division, spousal maintenance, and child support obligations. Keep in mind that you definitely should seek legal guidance on this topic and this article is intended to explain general concepts that can be involved in the state of Colorado. In this post, we explore factors to consider when facing unemployment or underemployment during the [divorce process](https://amf-divorce.com/our-blog/a-m-financial-protect-your-finances-in-the-divorce-process). ## Understanding Underemployment & Unemployment Underemployment refers to a situation where an individual voluntarily earns less than their full earning capacity, whether through part-time employment, choosing not to work outside the home or earning a wage well below their earning potential.  In most instances of underemployment, an income will be "imputed" to the spouse based on their qualifications and earning potential. This imputed income is calculated including factors such as age, education level, [previous work history](https://amf-divorce.com/our-blog/reentering-the-workforce-mahlen-financial), and marketable skills and any health issues to be considered. If parties can not agree on an income, a vocational assessment may be completed where a professional will conduct this analysis considering all factors including local employment landscape. This ensures that a fair and appropriate income is used for spousal support or child support calculations, even if the unemployed spouse's income is currently zero. The imputed income is what will be used in support calculations. If unemployment is involuntary, such as a job loss, it is important to document your efforts and attempts in finding employment. Document items such as positions applied for, potential income range, job requirements, and dates of interviews. This information will show that you are actively and sincerely looking for work. If you are receiving unemployment benefits, you will need to report it as income. ## Impact on Support Obligations & Overall Finances The loss of employment or a deliberate decision to quit a job can significantly affect spousal and [child support](https://amf-divorce.com/our-blog/what-does-child-support-cover) obligations. Be sure to work with your attorney to understand what factors the court will consider such as the financial circumstances of both parties, historical income, and present incomes, to calculate child support.  Keep in mind that regardless of the legal consequences that a loss of income can  have on support, it can be financially devastating if a large amount of debt is incurred or assets liquidated.  Generally divorces are financially challenging enough therefore putting in every effort to prevent a large financial hole to dig out of will certainly pay off as you move forward. Efforts to minimize the potential negative impacts such as temporary part-time employment of a position below your earning capacity until a more permanent solution is found can make a big difference in the long run. ## Emotional Stress The [emotional toll](https://amf-divorce.com/our-blog/managing-the-money-crazies-in-divorce-navigating-emotional-turbulence) of job loss, combined with the stress of divorce, can create a challenging situation. Emotional strain may impact decision-making and the willingness for parties to compromise during negotiations, leading to prolonged and heated divorce proceedings with high legal fees. Despite financial constraints, individuals facing divorce and unemployment are advised to maintain their expenses, including paying the minimum balance on debts. Employers often scrutinize financial histories, and overdue payments or bankruptcy could make future job opportunities difficult. Regardless of if you are or are not the spouse with job loss, it is important to discuss the dynamics of your situation closely with your attorney. Monitoring if and when strategies such as temporary support or establishing separate banking accounts would help protect you financially is essential.  Navigating the intersection of unemployment and divorce requires careful consideration of financial implications, legal strategies, and resources to support your emotional well-being. Seeking guidance from a financial advisor can provide valuable insights and help navigate the complexities of this challenging period. At A.M. Financial, [we offer a free consultation](https://amf-divorce.com/contact-us) to help you learn more about our services and how they can support your needs. - - - - - [mailto:?subject='https://amf-divorce.com/our-blog/unemployment-divorce-the-financial-considerations'](mailto:?subject='https://amf-divorce.com/our-blog/unemployment-divorce-the-financial-considerations') [Finances](https://amf-divorce.com/our-blog/tag/finances), [Child Support](https://amf-divorce.com/our-blog/tag/child-support), [Maintenance](https://amf-divorce.com/our-blog/tag/maintenance) ### Related Posts ## [Part 2: Top Spousal and Child Support Questions: An Interview with Rachel Anderson, Family Law Attorney](https://amf-divorce.com/our-blog/part-2-top-spousal-and-child-support-questions-an-interview-with-rachel-anderson-family-law-attorney) In [part one of this post](https://mahlenfinancial.com/part-1-top-divorce-questions-aninterview-with-rachel-andersonfamily-law-attorney/), we introduced Rachel Anderson, [family attorney](https://mahlenfinancial.com/finding-the-right-divorce-attorney-6-questions-to-ask/) at [Anderson Allen, LLC](http://www.andersonallen.com/).... [CONTINUE READING](https://amf-divorce.com/our-blog/part-2-top-spousal-and-child-support-questions-an-interview-with-rachel-anderson-family-law-attorney) ## [7 Things to Review Before Signing Final Divorce Papers](https://amf-divorce.com/our-blog/7-things-to-review-before-signing-final-divorce-papers) Divorce is a tumultuous time where couples race to the finish line. Although the temptation is... [CONTINUE READING](https://amf-divorce.com/our-blog/7-things-to-review-before-signing-final-divorce-papers) ## [Part 1: Top Divorce Questions: An Interview with Rachel Anderson, Family Law Attorney](https://amf-divorce.com/our-blog/part-1-top-divorce-questions-aninterview-with-rachel-andersonfamily-law-attorney) The most mutually satisfying divorces often involve a [variety of professionals](https://mahlenfinancial.com/divorce-professionals-mahlen-financial/) who serve the... [CONTINUE READING](https://amf-divorce.com/our-blog/part-1-top-divorce-questions-aninterview-with-rachel-andersonfamily-law-attorney) ### Posts by Tag - [Divorce (59)](https://amf-divorce.com/our-blog/tag/divorce) - [Finances (39)](https://amf-divorce.com/our-blog/tag/finances) - [Divorce Budgeting (33)](https://amf-divorce.com/our-blog/tag/divorce-budgeting) - [Planning (33)](https://amf-divorce.com/our-blog/tag/planning) - [Financial Planning (28)](https://amf-divorce.com/our-blog/tag/financial-planning) - [Budgeting (23)](https://amf-divorce.com/our-blog/tag/budgeting) - [Taxes (20)](https://amf-divorce.com/our-blog/tag/taxes) - [Assets (10)](https://amf-divorce.com/our-blog/tag/assets) - [Retirement Accounts (10)](https://amf-divorce.com/our-blog/tag/retirement-accounts) - [Divorce Options and Methods (9)](https://amf-divorce.com/our-blog/tag/divorce-options-and-methods) - [Maintenance (9)](https://amf-divorce.com/our-blog/tag/maintenance) - [Child Support (8)](https://amf-divorce.com/our-blog/tag/child-support) - [Investments (8)](https://amf-divorce.com/our-blog/tag/investments) - [Retirement (8)](https://amf-divorce.com/our-blog/tag/retirement) - [Property (7)](https://amf-divorce.com/our-blog/tag/property) - [Real Estate (7)](https://amf-divorce.com/our-blog/tag/real-estate) - [Spousal Support (7)](https://amf-divorce.com/our-blog/tag/spousal-support) - [Emotions (6)](https://amf-divorce.com/our-blog/tag/emotions) - [Family (6)](https://amf-divorce.com/our-blog/tag/family) - [Mediation (5)](https://amf-divorce.com/our-blog/tag/mediation) - [Property Division (5)](https://amf-divorce.com/our-blog/tag/property-division) - [Separation (4)](https://amf-divorce.com/our-blog/tag/separation) - [Co-Parenting (3)](https://amf-divorce.com/our-blog/tag/co-parenting) - [Coaching (3)](https://amf-divorce.com/our-blog/tag/coaching) - [Court (3)](https://amf-divorce.com/our-blog/tag/court) - [Estate Planning (3)](https://amf-divorce.com/our-blog/tag/estate-planning) - [Kids (3)](https://amf-divorce.com/our-blog/tag/kids) - [Retirement Planning (3)](https://amf-divorce.com/our-blog/tag/retirement-planning) - [Tips (3)](https://amf-divorce.com/our-blog/tag/tips) - [Counseling (2)](https://amf-divorce.com/our-blog/tag/counseling) - [Home (2)](https://amf-divorce.com/our-blog/tag/home) - [Interest Rates (2)](https://amf-divorce.com/our-blog/tag/interest-rates) - [Lawyer (2)](https://amf-divorce.com/our-blog/tag/lawyer) - [Mediator (2)](https://amf-divorce.com/our-blog/tag/mediator) - [CFI (1)](https://amf-divorce.com/our-blog/tag/cfi) - [College (1)](https://amf-divorce.com/our-blog/tag/college) - [Do It Yourself (1)](https://amf-divorce.com/our-blog/tag/do-it-yourself) - [Gifts (1)](https://amf-divorce.com/our-blog/tag/gifts) - [Healthcare (1)](https://amf-divorce.com/our-blog/tag/healthcare) - [Inflation (1)](https://amf-divorce.com/our-blog/tag/inflation) - [Insurance (1)](https://amf-divorce.com/our-blog/tag/insurance) - [Litigation (1)](https://amf-divorce.com/our-blog/tag/litigation) - [PRE (1)](https://amf-divorce.com/our-blog/tag/pre) - [Remarriage (1)](https://amf-divorce.com/our-blog/tag/remarriage) - [Stock (1)](https://amf-divorce.com/our-blog/tag/stock) - [Stock Market (1)](https://amf-divorce.com/our-blog/tag/stock-market) - [Transfers (1)](https://amf-divorce.com/our-blog/tag/transfers) - [Travel (1)](https://amf-divorce.com/our-blog/tag/travel) See all ##### About Amy With compassion and patience, Amy focuses on her client’s unique priorities to build a financial road map that provides clarity to make informed decisions today regarding the future. ##### Links - [Home](https://amf-divorce.com) - [Services](https://amf-divorce.com/divorce-transition-services) - [Our Blog](https://amf-divorce.com/our-blog) - [About Amy](https://amf-divorce.com/about-amy) - [Contact Us](https://amf-divorce.com/contact-us) - [Schedule a Meeting](https://calendly.com/amymahlenmelander) ©2026 Copyright. All rights reserved. A.M. Financial provides supporting financial information, evaluation and analysis to be utilized by the client and the client’s selected attorney if directed, during the process of their divorce. ervices provided in regards to this agreement are solely fee-only and do not involve investment or security advice or insurance transactions. All information is financial in nature and should not be construed or relied upon as legal or tax advice. A.M. Financial IS NOT AN ATTORNEY AND DOES NOT PROVIDE LEGAL OR TAX ADVICE. Individuals are encouraged to seek competent legal and tax advice from professionals who specialize in divorce and tax laws in their respective state. Amy Melander (CRD #4692263) is an Investment Adviser Representative of OneDigital Investment Advisors, LLC (ODIA). ODIA and A.M. Financial are independent and unaffiliated entities. ODIA does not offer or provide divorce financial planning services and any statements and/or opinions expressed by A.M. Financial do not represent the views and/or opinions of ODIA.   This website is a publication of A.M. Financial. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. Content should not be viewed as personalized investment advice or as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. A professional adviser should be consulted before implementing any of the strategies presented. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "2024-03-04T19:29:54.836Z", "datePublished" : "2024-03-04T19:29:54.000Z", "headline" : "Unemployment & Divorce: The Financial Considerations", "image" : [ "https://amf-divorce.com/hubfs/Imported_Blog_Media/qtq80-BiVPMT-768x512.jpeg" ], "mainEntityOfPage" : { "@id" : "https://amf-divorce.com/our-blog/unemployment-divorce-the-financial-considerations", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://amf-divorce.com/hubfs/amf-divorce-logo.jpg" } } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Divorce is undoubtedly a challenging period, and when coupled with a significant shift in employment, the financial and emotional pressure can be overwhelming. The impact of losing your source of income not only takes a personal toll on you and your former spouse, it also affects how crucial aspects of your divorce, such as property division, spousal maintenance, and child support obligations. Keep in mind that you definitely should seek legal guidance on this topic and this article is intended to explain general concepts that can be involved in the state of Colorado. In this post, we explore factors to consider when facing unemployment or underemployment during the divorce process. Understanding Underemployment & Unemployment Underemployment refers to a situation where an individual voluntarily earns less than their full earning capacity, whether through part-time employment, choosing not to work outside the home or earning a wage well below their earning potential. In most instances of underemployment, an income will be imputed to the spouse based on their qualifications and earning potential. This imputed income is calculated including factors such as age, education level, previous work history, and marketable skills and any health issues to be considered. If parties can not agree on an income, a vocational assessment may be completed where a professional will conduct this analysis considering all factors including local employment landscape. This ensures that a fair and appropriate income is used for spousal support or child support calculations, even if the unemployed spouse's income is currently zero. The imputed income is what will be used in support calculations. If unemployment is involuntary, such as a job loss, it is important to document your efforts and attempts in finding employment. Document items such as positions applied for, potential income range, job requirements, and dates of interviews. This information will show that you are actively and sincerely looking for work. If you are receiving unemployment benefits, you will need to report it as income. Impact on Support Obligations & Overall Finances The loss of employment or a deliberate decision to quit a job can significantly affect spousal and child support obligations. Be sure to work with your attorney to understand what factors the court will consider such as the financial circumstances of both parties, historical income, and present incomes, to calculate child support. Keep in mind that regardless of the legal consequences that a loss of income can have on support, it can be financially devastating if a large amount of debt is incurred or assets liquidated. Generally divorces are financially challenging enough therefore putting in every effort to prevent a large financial hole to dig out of will certainly pay off as you move forward. Efforts to minimize the potential negative impacts such as temporary part-time employment of a position below your earning capacity until a more permanent solution is found can make a big difference in the long run. Emotional Stress The emotional toll of job loss, combined with the stress of divorce, can create a challenging situation. Emotional strain may impact decision-making and the willingness for parties to compromise during negotiations, leading to prolonged and heated divorce proceedings with high legal fees. Despite financial constraints, individuals facing divorce and unemployment are advised to maintain their expenses, including paying the minimum balance on debts. Employers often scrutinize financial histories, and overdue payments or bankruptcy could make future job opportunities difficult. Regardless of if you are or are not the spouse with job loss, it is important to discuss the dynamics of your situation closely with your attorney. Monitoring if and when strategies such as temporary support or establishing separate banking accounts would help protect you financially is essential. Navigating the intersection of unemployment and divorce requires careful consideration of financial implications, legal strategies, and resources to support your emotional well-being. Seeking guidance from a financial advisor can provide valuable insights and help navigate the complexities of this challenging period. At A.M. 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