Numerous contentious issues arise during the divorce procedure. Child custody, spousal support, and property division are all factors that require a significant amount of attention. The status of your finances also warrants careful consideration.
Individuals are often so wrapped up in contesting family issues, that they neglect to organize their finances both for and after divorce proceedings. Outlined below are some tips that should help you to financially prepare for divorce.
Have you considered the tax implications?
While many divorces are settled within a matter of months, the process can take a considerable amount of time. The state of Texas also imposes a 60 day waiting period, which means that a couple may still have to file joint taxes, depending on the time of year.
Do you need a new home?
It may be tempting to try and hold on to the family home for nostalgic reasons or convenience. However, you should think carefully about whether this is financially sustainable. The reality is that your income may be halved, so keeping the home might be an expense that you do not need.
Does your divorce need to be a battle?
Like many legal proceedings, divorce is often thought of in terms of being an adversarial process where the “winner takes all.” The truth is that it doesn’t need to be this way.
It is highly unlikely that both spouses will get everything they want, so a level of compromise will be needed. Couples often find that it is in their best interests to separate in an amicable manner. When children are involved, this can set both parents up for a workable co-parenting arrangement. Additionally, the more disagreements you have, the more likely you are to incur more expenses associated with your divorce. Keeping hostility to a minimum is a sure way to reduce the economic impact of your divorce.
Getting your finances in place before the commencement of a divorce could significantly reduce your stress levels. As a spouse in Texas, it is also vital to remember that you are legally protected.