Gray Divorce Financial Specialist
Pensions, retirement accounts, real estate — Wisconsin's 50/50 split requires expertise. This guide shows you what to protect.
Leanne Ozaine, CDFA® & CFP® | Specializing in gray divorce for 50+
Turn Panic Into Power — $97Here's what nobody tells you: A "fair" settlement can still leave you struggling.
50/50 sounds equal. But if you take the house and your spouse takes the 401(k), only one of you has retirement income. A pension isn't cash. Tax treatment turns "half" into 40% or 60% depending on which half you take.
Your lawyer knows the law. They don't know what you'll live on for the next 30 years.
Most people sign their settlement while still in emotional shock. The brain is in survival mode — the prefrontal cortex that makes rational decisions is literally offline. By the time the fog lifts, the settlement is final.
You need someone whose only job is protecting your financial future — not billable hours, not legal posturing. Someone who can show you exactly what different settlement scenarios mean for your life 5, 10, 25 years from now.
If you're over 50 and facing divorce in Wisconsin, you're likely dealing with something most people don't talk about: the complete shift in your financial future when child-related issues are no longer the focus. Your children may be grown and financially independent, which means your entire divorce becomes about protecting and dividing decades of accumulated wealth.
This is especially overwhelming if you've never personally managed the household finances—and you're certainly not alone. Many of our Wisconsin clients are navigating complex financial decisions for the first time during divorce, often involving manufacturing pensions from companies like Harley-Davidson or Johnson Controls, retirement savings built over 30+ year careers, or family businesses in dairy, agriculture, or manufacturing.
Why Wisconsin is different: Wisconsin is one of only two states (along with Idaho) that uses the term "marital property" instead of "community property"—but it functions similarly to community property states like California. Wisconsin presumes equal division of marital property, but courts have discretion to deviate based on specific factors. This combination of presumed equality with judicial flexibility makes Wisconsin unique.
The fear-to-strength progression: Right now, you might be feeling panic about losing half of everything you've worked for, or confusion about what "marital property" really means. That's normal. But here's what we do together: we turn that panic into power by understanding exactly what Wisconsin's marital property law means for YOUR situation, identifying when deviation from 50/50 makes sense, and building a post-divorce financial plan that gives you confidence and security.
Here's what makes Wisconsin truly unique: Wisconsin uses the term "marital property" instead of "community property," but the system functions very similarly to community property states. Wisconsin law presumes equal division of marital property—but unlike California's strict 50/50 rule, Wisconsin courts can deviate from equal division based on specific statutory factors.
What counts as marital property in Wisconsin:
What counts as individual property in Wisconsin:
The presumption of equal division: Wisconsin law presumes that marital property should be divided equally (50/50). However, courts have authority to deviate from this presumption based on the factors listed in Wisconsin Statutes § 767.61.
Critical difference from California: Unlike California's mandatory 50/50 split, Wisconsin courts can order unequal division when equal division would be unfair or inequitable. This gives you more flexibility—but also more uncertainty.
This is one of Wisconsin's most important and strategic aspects of property division.
While Wisconsin presumes equal division of marital property, courts can deviate from 50/50 based on these specific statutory factors:
Statutory factors for unequal division (Wis. Stat. § 767.61):
What this means in practice:
If you're 62 years old, you supported your spouse through dental school 30 years ago, you have health issues that limit your earning capacity, and your spouse earns $400,000/year while you earn $45,000/year—a Wisconsin court could deviate from 50/50 and award you 60% or more of the marital property to account for these disparities.
Conversely, if your spouse brought a $500,000 inheritance into the marriage that was kept separate, and you dissipated $100,000 of marital funds on gambling, a court could award your spouse more than 50% to account for these factors.
The strategic implication: Understanding which deviation factors apply to YOUR situation—and documenting them thoroughly—can significantly impact your financial outcome. This is where financial planning expertise combined with strong legal representation becomes absolutely critical.
This distinction is fundamental to your divorce outcome.
Wisconsin law clearly distinguishes between marital property (subject to division) and individual property (generally not subject to division). Understanding this distinction can save you tens or hundreds of thousands of dollars.
Common scenarios that confuse people:
Question: Your mother passed away five years ago and left you $150,000. Is this marital or individual property?
Answer: It's individual property—IF you kept it completely separate. If you deposited it into a joint account with your spouse, or used it to pay off the marital home mortgage, or invested it in a jointly-titled brokerage account, you've likely converted it to marital property through commingling. This is why documentation and keeping inheritance separate is so critical.
Question: You owned a home worth $200,000 before marriage. During your 25-year marriage, you paid down the mortgage with marital income and the home appreciated to $450,000. How is this divided?
Answer: This gets complex in Wisconsin. The original $200,000 value (minus any mortgage at marriage) is likely your individual property. However, the appreciation ($250,000) and the mortgage principal paid down with marital funds are marital property subject to division. Your spouse may be entitled to half of that marital portion—potentially $125,000 or more. Proper documentation and expert valuation are essential.
Question: You started a dairy farm before marriage worth $300,000. During marriage, the farm grew to $1.2 million in value. How is this treated?
Answer: Wisconsin courts will likely determine that the $300,000 pre-marital value is individual property, but the $900,000 increase during marriage is marital property subject to division—regardless of whether that growth was "passive" (market forces) or "active" (your labor). This differs from some states that protect passive appreciation. Your spouse may be entitled to half of the $900,000 increase ($450,000).
Key takeaway: Wisconsin's marital property laws are complex. Proper classification of assets as marital vs. individual, thorough documentation of separate property, and expert tracing of commingled funds can have enormous financial implications. Don't try to navigate this alone.
Wisconsin has a rich manufacturing history, and many gray divorce cases involve pensions from companies like Harley-Davidson, Johnson Controls, Kohler, Oshkosh Corporation, Rockwell Automation, SC Johnson, and countless smaller manufacturers across the state.
Key manufacturing pension division issues:
Example calculation: Your spouse worked at Harley-Davidson for 30 years total, but you were married for 20 of those years. The pension's marital portion is 20÷30 = 66.67%. If the monthly pension benefit is $3,000/month, the marital portion is $2,000/month, and you may be entitled to half of that ($1,000/month) for life.
For those new to finances: A pension is a promise to pay you monthly income in retirement. Unlike a 401(k) you can see and control, pensions are managed by the employer. Understanding how to divide this invisible asset fairly requires specialized knowledge of pension valuation and division strategies.
Your 401(k), IRA, or other retirement accounts may be your largest asset. In Wisconsin, the portion accumulated during your marriage is marital property subject to division.
Critical retirement division issues:
For those new to finances: A 401(k) is your employer-sponsored retirement account. The money grows tax-deferred until you withdraw it in retirement. Dividing it incorrectly can trigger massive tax bills—this is where expert guidance pays for itself many times over.
If you've been married 10+ years, you may be entitled to Social Security benefits based on your ex-spouse's earnings record—even if you never worked outside the home or earned significantly less. This is federal law, not Wisconsin law.
Key benefits:
Critical timing: When you start Social Security significantly impacts your lifetime income. This is an essential part of your post-divorce financial plan.
Whether you're in suburban Milwaukee, Madison, or anywhere across Wisconsin, your home equity is likely a major asset and is marital property if acquired during marriage.
Key home division decisions:
Tax implications: The capital gains exclusion ($250K single, $500K married) affects whether you sell before or after divorce. Timing matters.
Wisconsin property tax consideration: Property taxes in Wisconsin vary by municipality. Can you afford the ongoing property taxes, insurance, maintenance, and utilities on one income?
For gray divorce: Keeping the house often sounds emotionally comforting, but it can jeopardize your retirement security if it ties up too much of your wealth in an illiquid asset. We need to run the numbers together.
Wisconsin's agricultural heritage means many gray divorce cases involve family farms, dairy operations, or agricultural land that has been in the family for generations.
Agricultural property division challenges:
Common scenario: You inherited a 200-acre farm from your parents worth $500,000 before marriage. During your 30-year marriage, the farm appreciated to $2 million. The original $500,000 is individual property, but the $1.5 million appreciation is marital property subject to division. Your spouse may be entitled to $750,000—but you can't sell half a farm. Buyout strategies, offsetting with other assets, or creative solutions become essential.
If you or your spouse owns a business or professional practice (medical, dental, legal, manufacturing, retail), valuation and division become critical issues.
Business division considerations:
For those new to finances: Business valuation is complex. Courts typically require expert valuations from qualified business appraisers. The valuation method chosen can result in hundreds of thousands of dollars in difference. This is not a DIY project.
Wisconsin uses the term "maintenance" instead of "alimony" or "spousal support," but it serves the same purpose: providing financial support to a spouse who lacks sufficient property or earning capacity to meet their needs.
Types of maintenance in Wisconsin:
Statutory factors Wisconsin courts consider (Wis. Stat. § 767.56):
Critical considerations when you're approaching or in retirement:
If you're the potential recipient:
If you're the potential payor:
Wisconsin tax considerations: Under current federal law (post-2018 divorces), maintenance is NOT deductible by the payor and NOT taxable to the recipient. This is federal law. However, maintenance is still subject to Wisconsin state income tax considerations in terms of overall financial planning.
Looking for information specific to your area? Explore our metro-specific pages:
Unlike states with no income tax (like Tennessee or Florida) or flat tax rates, Wisconsin has a graduated state income tax system with rates up to 7.65%. This creates important planning considerations for your divorce.
Wisconsin tax rates (2024 tax year):
Key tax considerations for divorce:
Strategic planning implications:
Wisconsin courts can consider economic misconduct when dividing property. If your spouse has been hiding assets, gambling away marital funds, or making large unexplained transfers, Wisconsin courts can account for this when determining property division.
Common forms of economic misconduct:
How to protect yourself: Document everything. Bank statements, credit card statements, tax returns, and financial records become critical evidence if you suspect misconduct. As a financial professional, I can help you identify red flags, trace dissipated funds, and work with your attorney to pursue remedies—which may include deviation from equal property division to account for dissipation.
Many of our Wisconsin clients over 50 have never personally handled the household finances. If your spouse always managed the money, investments, taxes, and retirement planning, facing divorce can feel overwhelming. You're suddenly responsible for understanding complex financial decisions you've never made before—and the stakes are incredibly high.
Here's what we do together:
This isn't just about dividing assets. It's about building your financial confidence, protecting your future, and ensuring you don't settle for less than you deserve simply because you don't understand the numbers.
Wisconsin's marital property laws are complex, and getting the division wrong can cost you tens or hundreds of thousands of dollars. Here's what specialized divorce financial planning provides:
Attorney vs. Financial Planner: What's the difference?
You need both. Your attorney handles the legal strategy and court proceedings. Your CDFA® handles the financial strategy and long-term planning. Together, they ensure you get both a legally sound AND financially optimal outcome.
What a CDFA® does for you:
The financial reality: Hiring a CDFA® isn't an expense—it's an investment that typically pays for itself many times over through better negotiation outcomes, tax savings, and avoiding costly mistakes.
The 5-step system that shows you what you'll actually live on, so you stop guessing and start knowing.
Calculate your real post-divorce income — including spousal support, assets, and earning potential — so you negotiate from facts, not fear.
Document gathering checklists tell you exactly what to bring to your attorney — so you walk in prepared, not panicked.
Map out your real expenses as a single person — before you fight for something you can't actually maintain.
The asset identification system helps you find accounts and property you might not even know exist.
22-page guide + video tutorials + checklists + templates
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Get the Clarity You Need — $97You don't have to navigate Wisconsin divorce finances alone. Let's turn your fear into financial strength.
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