Using panel data from the National Survey of Families and Households (n = 844), we examine the impact of divorce on father-child relationship quality and fathers' psychological well-being, the extent to which the residence of a focal child moderates these associations, and how changes in the quality of the father-child relationship over time affect fathers' psychological well-being. Results indicate that the effect of divorce on the quality of the father-child relationship and fathers' psychological well-being is moderated by the residence of children. Divorce is associated with lower relationship quality only for nonresident fathers and is associated with a decline in happiness for coresident fathers. Divorced fathers are more depressed than their married counterparts, regardless of child residence. Changes in relationship quality do not significantly influence fathers' psychological well-being.