When a couple decides to end their marriage, the equitable division of financial assets can often be the main issue to settle between the parties. How to divide things like a car, a home and its contents, financial accounts, such as savings or retirement, and fair child support payments may have to be decided. Texas is a community property state, meaning that upon divorce, all property acquired during the marriage must be split 50-50, and the courts make these decisions if the parties cannot come to an agreement.
A recently published list of steps to take after a divorce to ensure one’s financial stability highlight how important it is for both parties to attain a fair divorce settlement. While some of the recommendations like hiring a new financial professional and saving money won’t be dependent on the final agreement, several others could be considered unattainable without one that meets their needs. From creating a new budget to protecting one’s credit, the nine-item list includes tips that are more achievable by attaining the best possible terms at the time of divorce.
Stated as the first thing to do after a divorce to manage finances, creating a budget would most likely not be successfully accomplished without planning for the future prior to the final decree. For example, one’s total income after divorce may need to considered before fighting for an asset such as a car or home. Also on the list is updating joint expenses that are specifically related to child support. By taking into account both present and future financial possibilities, a good divorce agreement will ensure the well-being of the child and list which party would be responsible for specific needs like medical expenses or extracurricular school activities. Texas law allows for adjustments to child support payments as the financial situations of the parties changes.
The present and future needs of all those affected should be taken in account when a divorce ensues. An attorney can help sort through the many details involved in creating the divorce decree. By making a intelligent and detailed evaluation of the assets and incomes of those involved, an experienced attorney can help ensure the future financial stability of any client he or she represents.
Source: khou.com, “9 things you should do after a divorce to save your finances”, Jan. 19, 2017