Divorce Settlement Calculator
Enter two settlement proposals and compare them by net value today, monthly cash flow, and long-term projected wealth — so you can choose the offer that truly serves you best.
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Settlement Option A — Your Proposed Terms
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Option A — Net Value Today
$370,000
Total Assets$385,000
Debts Assumed−$15,000
Alimony Total$72,000
10-Year Projected Value$593,719
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Advanced Analysis
Scenario Comparison · Risk-Adjusted Values · 10-Year Cash Flow
Scenario A
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Scenario B
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Scenario A
$416,200
Total Alimony$151,200
Liquid Assets$25,000
Illiquid Assets$180,000
Debt$35,000
Net Value$416,200
Scenario B
$325,000
Total Alimony$60,000
Liquid Assets$15,000
Illiquid Assets$220,000
Debt$20,000
Net Value$325,000
Better Deal: Scenario A by $91,200
Professional Model
Full Settlement Model · What-If Scenarios · 10-Year Cash Flow
Full Asset Inventory
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Full Settlement Analysis
$489,777 total value (assets + alimony NPV)
Total Marital Assets$632,000
My Asset Share (50%)$316,000
Alimony Total (nominal)$211,200
Alimony NPV (5%)$173,777
Home Cap Gains Tax$0
Brokerage Cap Gains Tax$6,600
My After-Tax Share$284,700
Liquid Assets (%)22%
Why You Need to Compare Settlement Proposals
Divorce settlements involve trade-offs between different types of assets — liquid cash, illiquid home equity, tax-advantaged retirement accounts, and ongoing income from alimony. A proposal that looks equal on paper may not be equal in real value.
Common Trade-Offs
- House vs. retirement: Home equity feels tangible but is illiquid and costs money to maintain. Retirement accounts grow tax-deferred and are often more valuable long-term.
- More alimony vs. more assets: Alimony is income (taxable in some cases) and ends if your ex-spouse dies or you remarry. Assets are permanent and grow.
- Cash now vs. future value: A lump sum today invested at 6% doubles in 12 years. Monthly payments feel steady but don't compound.
The Formula
Net Value Today = (Home Equity + Retirement + Cash) − Debts
Alimony Total = Monthly Amount × 12 × Years
Projected Value (N years):
Investments FV = (Retirement + Cash) × (1 + Growth Rate)^N
Home FV = Home Equity × (1.04)^N (4% annual appreciation)
Total FV = Investments FV + Home FV − Debts
Alimony Total = Monthly Amount × 12 × Years
Projected Value (N years):
Investments FV = (Retirement + Cash) × (1 + Growth Rate)^N
Home FV = Home Equity × (1.04)^N (4% annual appreciation)
Total FV = Investments FV + Home FV − Debts
Worked Example
Example: Option A vs Option B — Who Really Wins?
Option A offers more home equity ($260k) and $1,200/mo alimony for 5 years. Option B offers more retirement savings ($180k) and $800/mo alimony for 8 years.
Option A — Net Today$370,000
Option B — Net Today$354,000
Option A — 10-Year Value$512,000
Option B — 10-Year Value$558,000
Option A looks better today but Option B wins after 10 years because retirement savings compound faster than home equity appreciates. Your personal time horizon matters enormously.
Frequently Asked Questions
Alimony is best valued as a total stream: monthly payment × 12 months × years. However, it carries risk — it ends if you remarry or if your ex-spouse can't pay. It's also taxable income under older agreements (pre-2019) and tax-free under newer ones. Liquid assets are more certain and don't depend on your ex-spouse's continued cooperation.
This is one of the most common divorce dilemmas. The house carries ongoing costs (mortgage, taxes, maintenance) and is illiquid. Retirement accounts grow tax-deferred and are liquid at retirement. If keeping the house means stretching your budget, retirement savings often create more long-term wealth. Consider your age, income stability, and whether you have children at home.
Yes. Many couples use mediation, collaborative divorce, or simply negotiate directly with the help of financial advisors. However, having a divorce attorney review the final agreement before signing is strongly recommended — especially to protect pension rights, tax implications, and future liability for joint debts.
A CDFA is a financial professional trained specifically in divorce financial planning. They can model settlement scenarios, identify hidden tax implications, and help you understand the true long-term value of different proposals. CDFAs typically cost $200–$400/hour and can save much more in avoided mistakes.
If spouses cannot reach a settlement, the case goes to trial and a judge decides. Litigation is expensive ($15,000–$100,000+), slow (1–3 years), and unpredictable. Judges often split assets down the middle, which may be worse than a negotiated outcome for both parties. Mediation resolves the vast majority of contested divorces before trial.