Money matters may not be the top priority of divorcing couples in Houston, Texas. The process can be such a cause of distress that separating spouses often may not consider many costly financial concerns in their efforts to resolve the divorce quickly. However, each of the spouses should be mindful about their finances while going through divorce.
A financial advisor recently shared a few helpful reminders about how to prevent mistakes that can have a negative effect on a spouse's financial future. According to the expert, it is important for a spouse to understand and document his or her financial situation. This includes assessing investments, other assets and financial obligations. Reviewing tax returns can also be helpful to ensure that the soon-to-be ex-spouse is not hiding any assets.
For property division, the initial value of marital properties and investments can vary over time and may be different once they are liquidated as part of the divorce proceedings. It is important that the current values of these assets be appraised properly to ensure fair division. Getting help from attorneys and financial advisors can also be a good investment to ensure that legal documentations are in order and they can help in making sound financial decisions.
Spouses also need to have a realistic view of their financial future by assessing their post-divorce income. As such, a spouse can plan whether to cut back on expenses even if there is divorce income available. In addition, divorcees can update their wills, insurance beneficiaries and other financial documents to assign the rightful beneficiary of their properties and release them from the obligations of their future ex-partners.
The impact of divorce can cause emotional distress. Nonetheless, divorcees should understand that, although it is painful, the emotional toll of the end of a marriage is short-term compared to the potential financial implications if poor financial decisions are made. The couple may seek legal representation to ensure the fair settlement of distribution of properties, parenting responsibilities and support.
Source: Wicked Local Hopkinton, "AUTERI: Financial concerns during a divorce," Alan Auteri, May 9, 2013