As we move into 2026, divorce and inheritance can no longer be viewed as isolated financial events. Increasingly, they are overlapping life transitions that occur later in life, with less margin for error and far greater consequences when decisions are made out of sequence. Returns still matter. But what is now shaping outcomes just as powerfully is when money is accessed, how assets are converted, and at what moment key decisions are made. In my work, the most damaging outcomes rarely stem from poor investing. They come from good decisions made too quickly or in the wrong order.
Divorce: when incentives change, the plan breaks
Consider a woman divorcing in her late forties. Her child turns 18 but remains in school and emotionally dependent after years of family stress. Financial support was never formally defined as “through graduation”; it was simply assumed. Then life intervenes. The former spouse remarries and has a child later in life. Incentives shift almost overnight. What once felt stable becomes uncertain. The real issue is not legal interpretation. It is timing. Income changes before earning capacity realistically exists. Without a clear strategy for the transition period, short-term needs begin to erode long-term security. The risk is not overspending. It is drawing on capital before it has the chance to support the future.
After the agreement: where capital quietly leaks
Another pattern often appears after a divorce agreement is finalized. On paper, the settlement looks solid. Assets are divided. A major decision follows—such as purchasing a home—in the name of stability. Months later, a tax or conversion consequence emerges that permanently reduces the capital intended to support the years ahead. No one failed. Each professional acted within scope. What failed was sequencing. Decisions were made independently, without anyone translating assets into their real-world impact over time. In these situations, timing becomes the dominant risk factor. Once capital is reduced at the wrong moment, no level of future returns can fully restore it.
Inheritance: grief, speed, and invisible costs
Inheritance often arrives during grief, not planning. And it rarely arrives as a diversified portfolio. More often, it comes in the form of property, a concentrated sale, or cash accompanied by new responsibilities. It is common for part of that money to be used for long-delayed travel, family support, or caregiving. Unexpected costs—tax timing issues, medical expenses, or responsibilities that were not anticipated—can quickly consume reserves meant for “the future.” Money is not lost through extravagance, but through well-intentioned decisions made without a full view of their consequences.
Conclusion: the KING lens
This is why I treat divorce and inheritance as financial transitions, not events that are simply “completed.” I use the KING lens: Know the true cost of the new life; Interpret assets based on how and when they will be used; Navigate the first year after change, when outcomes are often decided; and then focus on Growth—understanding that growth is rarely linear, but very much possible. In 2026, growth does not come from chasing returns. It comes from protecting capital long enough for returns to do their work.
Working with clients in divorce or inheritance? I partner with legal and tax professionals to help clients protect and grow their wealth during financial transitions—when timing matters most. Let’s talk.
Disclaimer
This content is for educational purposes only and does not constitute legal, tax, or individualized investment advice.
