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Texas divorce can cost more than one might think

Friday, September 22, 2017

Everyone knows divorce can be an expensive process, between division of assets and legal fees. But those about to embark on a Texas divorce might wish to consider the farther-reaching implications of the fiscal sacrifices associated with a separation. Especially for those coming from high-income households, the long-term effects of divorce might be more involved than an average Texan realizes.

For one thing, the division of assets immediately halves a spouse's material wealth -- this much is already well-documented. However, those assets can be further divided and disseminated when it comes time to leave inheritances and the like to successors. Divorce often means remarriage, which means familial funds could be spread over a considerably wider area than they would have been had the divorce not taken place.

Additionally, the question of pension -- typically the most valuable familial asset outside a family home -- must also be raised. If one spouse in a former marriage does not work, or is incapable of working, a portion of an arranged pension package must be allocated to that person's care. Add into that the fact that financial wrangling can drag on for months or years after a divorce is sought, and it becomes clear that divorce could be a far costlier endeavor than either spouse realized.

Ultimately it is the responsibility of both spouses involved in a Texas divorce to be educated about their rights and responsibilities before approaching the negotiation table. In high-income situations particularly, this means learning more about how division of assets and of pension will work in a practical sense. It may be helpful to seek external assistance in clarifying these matters effectively.

Source: Money Observer, The financial implications of divorce, Penny Lovell, Sept. 2, 2013