Avoid these financial pitfalls during your Texas divorce
Gain insight on starting life after divorce off on the right financial foot with a few great tips.
As you prepare for and move through your divorce, it is vital that you do what you can to avoid spending more money than necessary on dissolving your marriage. After all, you need to prepare for your new life in Texas. One of the best ways to do that is to start on solid financial footing. Learn some of the more common financial pitfalls to sidestep as you end one chapter of your life and start a new one.
Get a solid idea of your current financial situation
Going through debts, assets, income and the like is a vital part of divorce proceedings. With that in mind, it is the perfect time to take stock of your individual income, what assets you will retain and consider what your finances may look like after your divorce is final. Go ahead and tweak your budget to account for your new lifestyle, making sure that you look for opportunities to cut or reduce as much spending as possible.
Quickly pay down joint debt
There is likely either credit card debt or a mortgage in your and your soon-to-be-ex-spouse’s names. Because you are legally liable for that debt, no matter whose name is on it, it is best to try to pay it off as quickly as possible with joint marital assets. Once that is done, either freeze or close the account. This is so you do not have to worry about your soon-to-be-ex-spouse mucking up your credit by running up a new debt on the account failing to pay a joint debt, which can have a negative effect for years to come.
Refrain from making major financial decisions
Do everything in your power to refrain from making big financial decisions right now. That means not buying a new car, going on a retail therapy spree, buying a new house, taking an expensive vacation, or starting a business. You can certainly think about such purchases and investments, but do not spend the money or incur the debt until your divorce is over and you have a better understanding of your new financial obligations.
Remember your taxes
There is much to consider in terms of taxes when you divorce. This includes any spousal or child support you have to pay, as well as your personal taxes as a single taxpayer. Go ahead and sit down with an accountant or tax preparer who has experience with newly divorced individuals to see what you can expect to pay next tax year.
No matter how you feel about your divorce in Texas, you owe it to yourself to lay a solid financial foundation for your future. For more money tips and a review of your legal options during this time in your life, you may wish to consult with an experienced Board-certified Family Law expert attorney in Collin County, Dallas County, Denton County, Tarrant County, or elsewhere in Texas.