For some couples, no amount of mediation or counseling can save a marriage. If your marriage is bound for dissolution, it is important that you avoid costly financial mistakes that might put you in a disadvantaged position after the divorce.
Unfortunately, untangling two people’s money is never a walk in the park. Long before you sign those dotted lines, it is important that you row your ducks — financially speaking. Here are financial decisions that can put you on the right path during the divorce process:
Sever your financial ties
When you are married, the law sees you as one entity. As such, any assets you accumulate, as well as debts, are treated as joint property and, thus, subjected to Texas community property laws during division. If you share any joint credit and debit cards with your spouse, take steps to deactivate and close them as soon as you decide to divorce to avoid unpleasant surprises down the road.
Gather marital assets
One of the most contentious, yet inevitable, subjects you will have to deal with during the divorce is the division of marital assets according to Texas laws. For this to happen, both parties will be required to furnish the court with what they own. It is important that you are forthright while declaring marital assets.
Come up with your post-divorce budget
Your household income is most likely going to be impacted by the divorce. If you were sharing bills with your spouse, this is going to stop after the divorce. And if the court directs you to pay child and spousal support, then these obligations too are going to eat into your finances. As such, it is important that you review your finances and make appropriate adjustments to your budget.
Divorce comes with several financial implications. You may need to find out how you can protect your financial rights and interests while planning your divorce.