Divorce is common phenomenon in the lives of many persons today. It changes the structure of the family and, in so doing, changes the lives of the couples involved and presents the children of divorce with their own set of adjustment issues. This study examined the literature on children's overall adjustment to divorce. Subjects (N=102) were recruited from 15 elementary, middle, and public high schools in a mid-south urban area. A stepwise multiple regression analysis was used in order to determine the relative contribution of each of the family functioning variables to children's adjustment in specific areas. The family's role in facilitating overall competence, the effect divorce can have on such development, and suggestions for mediating the negative impact of divorce on the child's adjustment level were explored. In order to determine which dimensions of family dynamics are most associated with child socio-emotional adjustment, data from the Child Behavior Checklist, the McMaster Family Assessment Device (FAD), and the Divorce Adjustment Inventory (DAI) were collected and analyzed. Three family subscales of the FAD (Roles, Behavior Control, and Affective Involvement) and two risk factors from the DAI (Child's Reaction and Insight into the Divorce and Conflict) were found to be significant. A systems approach to understanding divorce appears useful in assessing initial risk as well as the effectiveness of various program components. (ABL)