Financial Lessons from a Divorce

Undoubtedly going through a divorce is one of the most traumatic and life-changing events, especially if it is an acrimonious separation.
We cannot help you with matters of the heart, only to provide moral support. But we definitely can help you through with your finances.

Sharing some financial lessons here after helping a few clients through their divorce.

Re-visit Cashflow & Spending habits

Shared expenses

Now that you have gone your separate ways, you may find that your spending has increased as you take over some expenses.
You might have to temporarily scale back on some discretionary spending while you sort out your cashflow.

Alimony

Depending whether you are the one giving or receiving alimony, manage your expenses accordingly. If you are the one receiving alimony, plan your finances on the assumption that you do not receive the alimony.

Review Insurance policies & coverage

You may have to increase your coverage, as you are no longer covered by your ex-spouse company insurance, or have to shoulder a larger financial burden.

Also ensure that you do not overlook the payments for your insurance policies, as your ex-spouse may have been the one paying for these policies previously.

Take stock of Savings in bank

Divorce is an expensive business, so you would have used up a fair bit of savings for this. Take time to buffer up your emergency cash.

In Singapore, divorce fees generally range from $1,500 to $3,500 for simplified uncontested divorces (where both spouses can agree on all terms of the divorce), and $10,000 to $35,000 for contested divorces (where both spouses are contesting at least one term of the divorce).

Extracted from: Singapore Legal Advice

Will / Nominations

A divorce does not revoke a Will or nomination, so if your ex-spouse is a beneficiary, you may wish to update your Will, as well as CPF and insurance nominations.

Lasting Power of Attorney (LPA)

Upon divorce, your ex-spouse appointment as donee will be cancelled and your LPA will no longer be valid if your ex-spouse is the only donee.
If you have stipulated a replacement donee, he/she can take over the role as your donee.

If you need to apply or amend your LPA, you can do so online from 14/11/2022.
Read more here: Lasting Power of Attorney applications to be made online from Nov 14

Parting Advice

As you move onto the next chapter of your life, my advice would be to rely on your own income & manage your expenses accordingly.

If you know someone going through a divorce, please share this article, or connect us at winniechan@fapl.sg, so that I can help them with their finances during this challenging times.

Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek unbiased financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.

Published By:

Chan Wen Li Winnie

Winnie Chan is a Certified Financial Planner (CFP) and MDRT Court of the Table qualifier (top 5% of advisers) with 15 years of experience in financial advisory services.

She specialises in helping doctors and high-income professionals build sustainable passive income, protect what they’ve worked for, and create a financial legacy for the people they love. Working across different insurers and investment platforms, Winnie focuses on finding the right fit for each client — not the other way around.

Her experience supporting clients through insurance claims has helped families access the financial protection they planned for, providing peace of mind during life’s most challenging moments.

Winnie was recognised as a Top 5 Weighted Premium producer at Financial Alliance in 2025 — out of close to 500 advisers — and received industry-level recognition for Top 3 Single Premium category Insurer award.

She has also brought financial education to organisations including Carousell Group, Singapore National Eye Centre, and Singtel.

Outside of work, Winnie stays active through regular gym workouts and is an accomplished pianist — recently attaining ABRSM Piano Performance Grade 6 (Merit).
She believes balance matters in finances, and in life.

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