Travel Nurse Divorce: Financial Guide for Splitting Finances on the Road

Introduction: When Your Personal Life and Travel Nursing Finances Collide

Divorce is one of the most financially disruptive events in anyone’s life. For travel nurses, the disruption runs deeper because so many financial structures in travel nursing — your tax home, your stipends, your insurance, your housing strategy — are tied to assumptions about your household that may no longer hold true.

When your tax home was your spouse’s house, what happens when you move out? When your health insurance came through your spouse’s employer, what happens when you are no longer on their plan? When your tax-free stipends depend on maintaining duplicated living expenses at a fixed address, what happens when that address is being divided in a settlement?

These questions do not have simple answers, and getting them wrong can cost thousands of dollars in lost stipends, unexpected tax liabilities, and financial penalties. This guide walks through the financial specifics that are unique to travel nurse divorce. It is not a replacement for legal counsel or therapy — you need both. But it will help you understand the financial landscape so you can make informed decisions during an incredibly difficult time.

This is educational content, not financial, legal, or tax advice. Divorce involves complex legal issues that vary by state. Consult a family law attorney, CPA, and financial advisor for guidance specific to your situation.

How Divorce Affects Your Tax Home Status

Your tax home is the foundation of your travel nursing pay structure. If you lose it, you lose your eligibility for tax-free stipends — and that can mean a $15,000 to $25,000 annual reduction in your take-home pay.

If Your Tax Home Is the Marital Home

Many travel nurses use the marital home as their tax home. They own or rent a property with their spouse, maintain that address as their permanent residence, and receive tax-free stipends while working assignments elsewhere.

When divorce proceedings begin, several scenarios can affect your tax home:

Scenario 1: You keep the house. If you are awarded the marital home in the divorce settlement (or you buy out your spouse’s share), your tax home remains intact. You continue to have a mortgage or rent payments, utilities, and all the duplicated living expenses the IRS requires. This is the simplest outcome for your travel nursing finances.

Scenario 2: Your spouse keeps the house. You now need to establish a new tax home. This means finding a new permanent residence — renting an apartment, buying a new home, or entering a rent-free arrangement with a family member that still satisfies the IRS requirements. You must act quickly because any gap in your tax home status puts your stipends at risk.

Scenario 3: The house is sold. Both parties move out, and the proceeds are divided. You need a new tax home before your next assignment. If you start an assignment without a valid tax home, your stipends should be reported as taxable income.

Scenario 4: You temporarily move out during separation. This is the gray area that causes the most confusion. If you move out of the marital home during separation but still own it (or are still on the lease), your tax home may still be valid — but only if you are still paying toward the property and intend to return or maintain ties to the area. If you move out and stop paying, your tax home claim weakens significantly.

Establishing a New Tax Home After Divorce

If you need a new tax home, prioritize this immediately. The IRS requires that you satisfy at least two of the three tax home factors:

You perform some work in the area of your tax home (PRN shifts, per diem work)
You have duplicated living expenses (rent, mortgage, utilities at your tax home)
You have not abandoned the area (you return regularly, you have not moved your entire life to your assignment locations)

Practical steps:

Lease an apartment or rent a room in the area where you want to establish your tax home
Set up utilities in your name
Update your driver’s license and voter registration to the new address
Register with a local per diem agency and pick up shifts between assignments
Keep meticulous documentation of all expenses and ties to the new address

For a complete walkthrough of the requirements, see our tax home guide. Consult a CPA who specializes in travel nursing taxes to ensure your new tax home is established properly.

Tax Home When Both Spouses Are Travel Nurses

If both you and your spouse are travel nurses who shared a tax home, divorce means you both need to evaluate your individual tax home situations. You cannot both claim the same property as a tax home if only one of you maintains ties to it. The spouse who keeps or continues paying for the property has the stronger claim. The other must establish a new one.

Asset Division: What Travel Nurses Need to Know

Divorce means dividing everything you own and owe. For travel nurses, there are specific assets and income streams that require careful handling.

Are Stipends Considered Income for Divorce Purposes?

This varies by state and by judge, but here is the general landscape:

For calculating child support and alimony: Courts often consider your total compensation, including tax-free stipends, when determining support obligations. Even though stipends are not taxable income for IRS purposes, they represent real earning capacity, and family courts care about your actual ability to pay.

Your total pay package matters. If your agency pay package shows $2,800 per week in total compensation ($1,200 taxable + $1,600 in stipends), a court may use the $2,800 figure when calculating support, not just the $1,200 taxable portion.

Document your actual compensation. Gather your pay stubs, contract summaries, and total compensation records. Your attorney needs to understand how travel nurse pay works to properly represent your interests.

Retirement Accounts

Retirement accounts accumulated during the marriage are generally considered marital property and subject to division. This includes:

401(k) accounts from staffing agencies — even if they have not fully vested, the marital portion may be divisible. See our 401(k) guide.
IRA accounts (Traditional and Roth) — contributions made during the marriage are typically marital property.
Brokerage accounts — investment accounts built during the marriage are divisible.

Dividing retirement accounts requires a Qualified Domestic Relations Order (QDRO), which is a court order that directs the retirement plan administrator to divide the account. A QDRO allows the division to happen without triggering early withdrawal penalties or taxes. Get this right — dividing accounts without a proper QDRO can result in unnecessary tax consequences.

If you have been investing aggressively toward FIRE (financial independence) or building a real estate portfolio, those assets are part of the marital estate and will need to be addressed in the settlement.

Debt Division

Debts accumulated during the marriage are also divided. For travel nurses, this commonly includes:

Student loans: Federal student loans in your name are generally your responsibility, but this can vary by state. Private loans taken during the marriage may be considered marital debt. See our student loan guide.
Credit card debt: Joint credit card accounts are divided in the settlement. Individual accounts may or may not be considered marital debt depending on when and how the debt was incurred.
Car loans and mortgages: These are typically assigned to whoever keeps the asset.
Housing-related debts: If you have lease obligations at your tax home or assignment housing, determine who is responsible for those obligations as part of the separation agreement.

Travel Nursing Equipment and Professional Assets

Your nursing career assets (stethoscope, certifications, licenses, professional development investments) are generally not divided in divorce. However, if you own a business related to nursing (an LLC, a side business, a rental property used for tax home purposes), that business interest may be subject to division.

Insurance Changes During and After Divorce

Divorce triggers significant insurance changes that require immediate attention.

Health Insurance

If you are on your spouse’s health insurance plan, you lose coverage when the divorce is finalized (or sometimes when you are legally separated, depending on the plan).

Your options:

Agency health insurance. If your staffing agency offers health insurance, enroll during the next open enrollment period or qualify for a special enrollment period triggered by your divorce (loss of coverage is a qualifying life event). See our health insurance guide for details on agency plans.
ACA Marketplace. Divorce and loss of coverage qualify you for a special enrollment period on the ACA marketplace. Depending on your income (remember, your taxable income may be lower than your total compensation due to stipends), you may qualify for premium subsidies. See our ACA guide.
COBRA. You can continue your spouse’s employer plan for up to 36 months through COBRA, but you pay the full premium (employer and employee portions) plus a 2% administrative fee. This is typically the most expensive option. See our COBRA guide.
Short-term health insurance. If you need temporary coverage while evaluating your options, short-term plans can bridge the gap. They are limited in coverage but better than nothing.

Act quickly. Special enrollment periods are typically 60 days from the qualifying event. Miss the window and you may have to wait until open enrollment.

Malpractice Insurance

Your personal malpractice insurance policy should not be affected by divorce since it is an individual professional policy. However, verify that your coverage is current and that your contact information and address are updated.

Life Insurance

If you have a life insurance policy and your spouse is the beneficiary, decide whether to change your beneficiary designation. If you have children, you may want to keep your spouse as beneficiary (or name the children directly with a trust arrangement) to ensure they are protected. Review your life insurance policy with your attorney.

Auto and Renters/Homeowners Insurance

If you shared auto insurance, separate your policies. If you are establishing a new tax home with a new lease, you need renters insurance. If you keep the marital home, update your homeowners insurance to reflect single ownership.

Custody Logistics for Travel Nurse Parents

Custody arrangements are among the most challenging aspects of travel nurse divorce. The nature of travel nursing — working in different cities, being away for 13-week stretches — creates unique custody complications.

How Courts View Travel Nursing in Custody Decisions

Family courts prioritize stability for children. A parent who travels for work is not inherently at a disadvantage, but you need to demonstrate that you have a plan for consistent, quality time with your children.

Factors courts consider:

Your work schedule and availability
Your ability to maintain a stable home environment for the child
The child’s school and community ties
Your history of involvement in the child’s life
The distance between your assignment locations and the child’s primary residence
Your willingness to facilitate the other parent’s relationship with the child

Custody Arrangements That Work for Travel Nurses

Extended time during gaps. Many travel nurse parents negotiate custody agreements that give them extended periods with their children between assignments. For example, you might have custody during the two to four weeks between contracts, plus holiday periods and summer breaks.

Assignment-specific arrangements. Some custody agreements include provisions for local assignments. If you take an assignment close to your child’s primary residence, your custody time may increase to a more traditional schedule during that period.

Virtual visitation. Courts increasingly recognize video calls, FaceTime, and other digital communication as meaningful parent-child contact. Include provisions for regular virtual contact in your custody agreement.

Geographic restrictions. Be aware that some custody agreements include geographic restrictions on where you can work. A court might limit your assignments to within a certain distance of your child’s primary residence, which could significantly affect your earning potential. Discuss this with your attorney and understand the implications before agreeing.

Financial Implications of Custody for Travel Nurses

Child support calculations. Your total travel nurse compensation, including stipends, may be considered when calculating child support. Higher-earning travel nurses may face substantial support obligations.

Travel costs for custody exchanges. If your tax home is far from your child’s primary residence, factor in the cost of flights, gas, and lost work time for custody exchanges. These costs add up quickly and should be addressed in your custody agreement.

Tax filing status. The parent who has the child for more than half the year typically claims the child as a dependent, which affects your tax return. Determine this in your divorce agreement and understand how it affects your overall tax situation. Your tax deductions may change.

Financial Reset Checklist After Divorce

Use this checklist to ensure you address every financial item during and after your divorce.

Immediate (Within 30 Days)

Open individual bank accounts if you shared joint accounts
Change direct deposit for your travel nurse paycheck to your individual account
Review and update all insurance policies (health, auto, renters/homeowners, life, malpractice)
Secure your emergency fund — if you shared one, establish your own with three to six months of expenses
Change passwords on all financial accounts
Freeze your credit if there is any risk of unauthorized account opening
Notify your staffing agency of address and tax withholding changes

Short-Term (Within 90 Days)

Establish a new tax home if you no longer have access to your previous one
Update your W-4 with your agency to reflect your new filing status (single or head of household)
Create a new individual budget based on your single-income household
Close or separate joint credit card accounts
Update beneficiary designations on all retirement accounts, life insurance, and investment accounts
Consult with a CPA about your tax situation for the current year (you may file jointly for the year of divorce if still legally married on December 31, or you may file separately)
Review your credit report for any joint accounts that need to be addressed

Medium-Term (Within 6 Months)

Rebuild your emergency fund to the recommended level for a single-income household
Review and adjust your retirement savings strategy
Review and adjust your investment portfolio if it was divided
Ensure all QDROs have been processed for retirement account divisions
Update your estate plan (will, power of attorney, healthcare directive)
Set up a new financial plan that reflects your individual goals

Long-Term (Within 12 Months)

File your first post-divorce tax return with a CPA who understands travel nursing
Evaluate whether your current travel nursing strategy still aligns with your personal and financial goals
Consider meeting with a financial advisor to create a long-term wealth-building plan as a single professional

Managing Emotions and Finances Simultaneously

Divorce is emotionally devastating. Making major financial decisions while grieving, angry, or overwhelmed leads to mistakes.

Do not make permanent decisions based on temporary emotions. Selling your house at a loss to “just be done with it,” accepting an unfair settlement to avoid conflict, or taking on high-risk investments to try to rebuild quickly are all decisions you may regret.

Hire professionals. A family law attorney protects your legal rights. A CPA protects your tax position. A financial advisor helps you rebuild. A therapist helps you process the emotional weight. These are not luxuries — they are necessary expenses during one of the most consequential financial events of your life.

Lean on your travel nursing community. Other travel nurses who have been through divorce can share practical wisdom about managing the unique challenges. Travel nursing forums and support groups can be valuable (just be cautious about taking legal or tax advice from non-professionals).

Use travel nursing as a tool for recovery. Many divorced travel nurses find that the ability to choose new locations, meet new people, and focus on their career is actually healing. A change of scenery between assignments can be exactly what you need. And the higher earning potential of travel nursing gives you the financial runway to rebuild faster than most careers allow.

Key Takeaways

Your tax home status is the most urgent financial concern — losing it means losing tax-free stipends worth $15,000 to $25,000 per year
If you lose access to the marital home that served as your tax home, establish a new tax home immediately before your next assignment
Courts may consider your total travel nurse compensation (including tax-free stipends) when calculating child support and alimony
Divorce is a qualifying life event that triggers special enrollment periods for health insurance — do not miss the 60-day window
Retirement accounts built during the marriage are marital property and require a QDRO for tax-free division
Create separate individual bank accounts, update all beneficiary designations, and establish your own emergency fund as soon as possible
Custody arrangements for travel nurse parents require creative scheduling and clear provisions for extended time during assignment gaps
Hire a family law attorney, CPA, and financial advisor — the cost of professional guidance is far less than the cost of financial mistakes during divorce

Frequently Asked Questions

Will I lose my tax-free stipends if I get divorced?

Not necessarily, but you must take immediate action to maintain or establish a valid tax home. If the marital home was your tax home and your spouse keeps it, you need a new tax home before your next assignment. Lease an apartment, set up utilities, and establish ties to the area. Without a valid tax home, your stipends become taxable income.

Are travel nurse stipends considered income in divorce proceedings?

Courts vary on this, but many judges consider your total compensation — including tax-free stipends — when determining child support and alimony obligations. Even though stipends are not taxable income for IRS purposes, they represent real earning capacity. Be prepared for your total pay package to be scrutinized.

Can I still travel nurse with a custody agreement?

Yes, but your custody agreement needs to account for the travel nursing lifestyle. Work with your attorney to build in flexibility for your assignment schedule, including extended custody during gaps between assignments, virtual visitation provisions, and geographic considerations. Some custody agreements include provisions that adjust based on whether you are on a local versus distant assignment.

How do I handle health insurance during divorce?

Act within 60 days of losing coverage (your qualifying life event). Your best options are typically your staffing agency’s health plan, an ACA Marketplace plan (where you may qualify for subsidies based on your taxable income), or COBRA continuation of your spouse’s plan (expensive but immediate). Do not go uninsured — one medical emergency without coverage can cause financial devastation.

Should I take the house or let my spouse have it?

This depends on your overall financial picture and your tax home strategy. Keeping the house preserves your tax home and your stipend eligibility, but also means mortgage payments, maintenance costs, and property management while you are on assignment. If you let your spouse keep the house, you gain liquidity from the equity buyout but need to establish a new tax home. Run the numbers on both scenarios with your CPA and attorney.

Affiliate Placement Notes: Financial advisor matching service referral in the professional guidance section. CPA referral service in the tax home and tax implications sections. High-yield savings account referral in the emergency fund rebuilding section. Insurance comparison tools in the health insurance and life insurance sections.