While divorce can affect numerous Texas couples, many are not prepared for the financial disruption that can come as a relationship is formally severed. Unfortunately, the emotional side of divorce can result in extreme financial devastation as one party endeavors to destroy another. However, there are some helpful steps to consider when facing such a split to minimize the financial impact.
Some individuals are able to part on good terms, in which case mediation or collaborative divorce might be possible. However, it is wise to hire a lawyer if one’s spouse has done so to ensure that there is a balance. It is also crucial to have a clear understanding of one’s finances heading into a divorce. Good documentation should include several years of account statements and tax returns. It is also wise to have a clear understanding of the values of certain assets, including businesses. Debt information should be clear, starting with an evaluation of one’s credit report. An understanding of one’s debts may provide a picture of potential obligations after a divorce concludes.
Financial expertise could be important to ensure that the tax implications of a potential asset or settlement are clear. Additionally, this may be important for understanding how to manage one’s financial issues going forward, especially if during the marriage there has been little personal management of accounts and bills. Although divorce proceedings can be draining and difficult, it is important to be persistent to avoid suffering financially; an individual should make decisions motivated more by common sense than by emotion.
An individual who has been married for an extended period of time might need guidance related to assets such as retirement accounts and other investments. A legal professional may focus on the benefits of certain types of retirement accounts and provide guidance on avoiding costly tax mistakes after a settlement.