Even the most amicable divorce can be stressful when it comes to the financial implications of the end of a marriage. Texas residents who have experienced divorce understand the divorce issues that can stem from the division of assets, retirement accounts and other financial considerations. Because of the financial implications of divorce, it can be extremely beneficial for both parties to have a degree of preparedness when entering the divorce process.
The first goal for both parties should be a strong understanding of how divorce law in their state affects the division of marital assets. In Texas, which is a community property state, marital assets, or assets accrued during the marriage, are considered community property and are, therefore, divided equally between both parties. Assets accrued prior to the marriage revert ownership to the individual who originally earned, purchased or received them.
It is also important to consider more intangible assets. For example, 401(k) and retirement assets may need to be more carefully scrutinized before they can be divided. It can be helpful for both parties to negotiate a qualified domestic relations order, or QDRO, that is required when dividing assets of this type.
Ultimately, education is the most powerful tool in tackling divorce issues. Texas residents approaching divorce could benefit from the support of qualified professionals as they work toward learning more about their individual rights and responsibilities under the state’s laws. This level of preparedness can go a long way toward smoothing the road to an amicable and equitable divorce settlement.
Source: thestreet.com, “How to Survive Financially After a Divorce“, Thomas Scarlett, Feb. 21, 2016