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Divorce Settlement Comparison Calculator

Compare two divorce settlement proposals side-by-side — monthly income, assets, debts, and after-tax net position — to make an informed decision.

Updated April 2026 NPV + Tax-Adjusted Comparison Private — runs in your browser

Monthly Income

$
$
$

Assets You Receive

$
$
Pre-tax value
$
$

Debts You Assume

$
$
$
$
%
For retirement asset haircut
Proposal A — Net Position
$235,000
Monthly Income
$8,500
Total Assets
$265,000
Total Debt
$13,000
After-Tax Net
$235,000
Advanced Calculator

Factor-by-factor dual bar chart comparing Offer A vs Offer B across all settlement components, plus risk-adjusted analysis with litigation discount modeling.

+ Open Advanced Calculator
Offer A
$
$
$
$
$
yrs
$
$
$
$
Offer B
$
$
$
$
$
yrs
$
$
$
$
Offer A Total
$410,000
Offer B Total
$410,000
Factor-by-Factor Chart
Home Equity
A
$140,000
B
$0
Retirement (Your portion)
A
$85,000
B
$120,000
Retirement (QDRO portion)
A
$45,000
B
$60,000
Cash / Liquid Assets
A
$25,000
B
$18,000
Alimony (Total NPV)
A
$108,000
B
$210,000
Vehicle
A
$22,000
B
$18,000
Other Assets
A
$15,000
B
$10,000
Debt Assumed
A
-$18,000
B
-$8,000
Legal Costs
A
-$12,000
B
-$18,000
Professional Simulator

Tax basis analysis (capital gains on home/stocks, retirement liability), 10-year cash flow projection, and Monte Carlo portfolio simulation with percentile outcomes.

+ Open Professional Simulator
Your Tax Bracket
Primary Home
$
$
$
Retirement Accounts
$
%
Stock / Investment Portfolio
$
$
yrs
Tax-Adjusted Settlement Values
$55,900 in hidden taxes
Home Capital Gains Tax$0
Home Net After Tax$420,000
Retirement Tax Liability$48,400
Stock Capital Gains Tax$7,500
Stock Net After Tax$77,500
Cap Gain Rate Applied15%

How the Settlement Comparison Calculator Works

Divorce settlement proposals can look very different on paper. One might offer higher monthly support but less property; another might offer more assets but less ongoing income. This calculator helps you compare two proposals on an apples-to-apples basis by calculating your total net financial position under each scenario.

What the calculator analyzes

Why after-tax matters

A $100,000 IRA and $100,000 in a bank account are NOT equal. The IRA has never been taxed — when you withdraw it, you'll owe income tax (typically 15–30%) plus a 10% penalty if under 59½. A $100,000 retirement account may only be worth $70,000–$80,000 after taxes. This calculator applies an 80% factor to retirement assets (assuming 20% combined tax/penalty) to show true equivalent value.

Settlement Comparison Formula

Total Monthly Income = Earned Income + Spousal Support + Child Support Total Assets = Cash + Retirement + Home Equity + Other Assets After-Tax Retirement = Retirement Assets × (1 − Tax/Penalty Rate) Liquid Assets = Cash + Home Equity + Other Assets + After-Tax Retirement Net Position = Liquid Assets − Total Debt Better Proposal = Higher After-Tax Net Position

Real-World Example

Case Study — Two Offers, One Choice

Jennifer receives two settlement proposals. Proposal A looks better on the surface, but Proposal B wins after-tax analysis.

Proposal A: $2,000/mo support + $150,000 assetsMonthly: +$2,000
Proposal B: $1,500/mo support + $200,000 assetsMonthly: +$1,500
But: Proposal A assets = 100% retirement (pre-tax)After-tax: $120,000
Proposal B assets = 50% cash, 50% retirementAfter-tax: $180,000
5-year support difference: $500/mo × 60+$30,000
Proposal A 5-year total value$150,000
Proposal B 5-year total value$210,000

Despite lower monthly support, Proposal B provides $60,000 more in 5-year value when after-tax asset values are properly accounted for. Never compare proposals without adjusting for the tax status of assets.

Official Sources & References

Frequently Asked Questions

A fair evaluation looks beyond face value numbers. Key factors: (1) Tax implications of each asset type, (2) Liquidity — can you access the money when needed?, (3) Risk — investment accounts fluctuate; cash doesn't, (4) The reliability of support payments — alimony can be modified or terminated, (5) Long-term income trajectory — will your earning capacity improve?, (6) Housing stability — does the proposal allow you to maintain stable housing?
This is one of the most consequential divorce decisions. Key considerations: Can you afford the mortgage on your solo income? Do you have liquidity to cover maintenance and repairs? Is the home in a market likely to appreciate? Keeping a house you can't afford while giving up liquid assets is a common financial mistake. In many cases, taking cash or a larger retirement account is more financially sound than fighting for a house with high ongoing costs.
A Qualified Domestic Relations Order (QDRO) is the legal mechanism for dividing retirement accounts (401k, 403b, pension) in a divorce without triggering immediate taxes or penalties. The receiving spouse takes their share as their own retirement account. Without a properly drafted QDRO, the transfer may be treated as a distribution subject to taxes and penalties. Always have a QDRO prepared by a specialist when retirement accounts are in the settlement.
Alimony is enforceable as a court order. If your spouse fails to pay, you can file a motion for contempt of court, which can result in wage garnishment, asset seizure, suspension of licenses, or even jail time. However, enforcement takes time and legal resources. When evaluating a settlement, consider how dependent you are on support payments versus liquid assets you control directly — assets in hand are more reliable than future payment obligations.
The decision depends on the gap between the offer and what you'd likely receive at trial, the cost of getting to trial (typically $20,000–$80,000+ more in attorney fees), the time involved (12–24+ months), and the emotional toll. A useful rule of thumb: if a settlement offer is within 15–20% of the best-case trial outcome, accepting often makes financial sense. Courts are unpredictable, and the certainty of a settlement has real value.

When to Consult a Certified Divorce Financial Analyst (CDFA)

This calculator provides a high-level financial comparison but cannot account for all factors a court or mediator would consider. Consult a CDFA or family law attorney if your settlement involves: retirement accounts requiring a QDRO, real estate with complex capital gains exposure, a business interest subject to valuation, stock options or deferred compensation, or international assets. A CDFA can model the long-term, after-tax trajectory of each proposal — often saving far more than their fee.

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Not legal or financial advice. This calculator provides estimates based on published guidelines and formulas. Family law varies by jurisdiction and individual circumstances. Always consult a qualified attorney or financial advisor before making decisions. Full disclaimer · Our methodology