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Planning a Texas divorce requires financial savvy

Tuesday, June 27, 2017

It is a well-known fact that finances play a considerable role in a divorce situation. A Texas divorce can influence not only day-to-day finances but also retirement and other long-term financial considerations. It can be helpful for both individuals involved in the separation to develop their own comprehensive plans for preparing themselves to deal with the financial realities of a divorce.

Much of the work to be done to financially prepare for a divorce should be embarked upon before beginning the separation process. If the divorce is amicable, it can be helpful to begin closing joint bank accounts and opening separate accounts in the names of each individual involved. Gathering investment and tax information will also help expedite the process once the parties are at the negotiation table.

Preparing for a divorce settlement also requires thinking ahead. If the couple has children, it is beneficial to discuss future investments like college or other educational funds and how they will be contributed to, who will be responsible for them and so on. Additionally, drafting new versions of individual wills can help to specify where finances will go in the event of a tragedy, so as to ensure each individual's personal finances are disseminated in the way that they want.

Texas divorce is not an easy process from an emotional standpoint, but the hardships associated with a separation can be mitigated by pre-planning. Understanding joint and individual finances and compiling the information ahead of time can help to lessen the potential for disagreements once the settlement phase is reached. Ideally, both parties will be able to come to a mutually amicable agreement on how to divide assets, starting each off in their newly single lives on the right foot.

Source: CNN, "Don't let divorce wreck your finances", Karen Cheney, April 4, 2014

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