Analysis
Discover how divorce affects your Financial Independence / Retire Early (FIRE) plan. Compare years to FIRE before and after separation.
This calculator helps individuals assess the financial impact of divorce on their Financial Independence, Retire Early (FIRE) plan and real estate portfolio. It is designed for those who are pursuing FIRE and need to understand how a divorce might affect their assets, liabilities, and timeline to financial freedom.
Input Current Financials
Enter your current assets, including real estate properties, investment accounts, and other significant holdings. Also, input your liabilities such as mortgages, loans, and other debts.
Define Divorce Settlement Terms
Specify the proposed division of assets and liabilities, including how real estate properties will be split or sold. Consider different scenarios for asset distribution and spousal support.
Project Future Income and Expenses
Estimate your post-divorce income and living expenses. This includes any changes in employment, child support, or alimony payments, and new housing costs.
Analyze FIRE Timeline Impact
Evaluate how the revised financial situation affects your FIRE number and the projected date of financial independence. The calculator will show the new timeline based on the settlement.
Optimize and Plan
Review the results and explore alternative settlement options or financial strategies to mitigate negative impacts. Develop a revised plan to get back on track with your FIRE goals.
For a 240 000 € home in Braga, Portugal, document ownership shares, mortgage balance and local transaction costs.
The result is an educational negotiation scenario and does not determine legal rights.
The FIRE Number is the total portfolio value you need to retire early. It equals 25× your annual expenses, based on the 4% Safe Withdrawal Rate (Bengen Rule). For example, if you spend £40,000/year, you need £1,000,000 to achieve FIRE.
Divorce typically delays FIRE in three ways: (1) splitting the portfolio reduces your starting capital; (2) individual expenses are usually higher than half of joint expenses (two households cost more); (3) one-off divorce costs (legal fees, notary, etc.) further reduce your portfolio.
If your partner keeps the property and pays you a buyout, this cash is added to your portfolio, potentially accelerating your FIRE timeline. Conversely, if you keep the property and pay a buyout, this reduces your investable portfolio.
A common assumption is 7% nominal (or 5% real after 2% inflation) for a diversified equity portfolio (e.g., S&P 500 index fund). Conservative investors use 5-6%; aggressive investors may use 8-10%. The calculator uses nominal returns.
