Texas Divorce Financial Consequence Attorney
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Divorce Financial Consequence Lawyer in Texas
The Financial Consequences of Divorce
Separating finances is one of the most challenging parts of many divorces, especially because the same amount of money must go from supporting one household to two.
If property like houses or vehicles was purchased during the marriage, the divorce decree will determine how these items are to be separated. Sometimes, one spouse will buy out the other’s interest in the physical property. Sometimes, they will figure out a way where both can keep some property, such as someone holding the primary home and the other keeping a vacation home and recreational vehicles. When negotiating the separation of assets, it’s important to consider the cost of maintenance and insurance and whether you’ll be able to afford the extra costs associated with the property.
If debts were accrued during the marriage, those also need to be separated equitably. If one spouse took out student loans or credit card debt during the marriage, both spouses could be liable for paying that off unless they come to a different agreement.
Sometimes, retirement accounts need to be split up as well. If one spouse has stayed home and out of the workforce to raise children or manage the household, the other spouse might owe them alimony.
Divorce Often Hurts the Wallet
In almost every situation, both spouses will experience a lower quality of life after the divorce is finalized. The salary that they have stays the same, but instead of pooling resources with a partner, that pool of money needs to support two households.
During the divorce, children can be impacted as well. Their parents may not be able to afford the same extracurricular activities that they could when they were married. They may also not get to spend as much time with their parents now that previously stay-at-home parents may need to go back to work full-time.
Children can also financially impact their parents in the case of a divorce, most noticeably in the form of child support. The primary parent will, in most case, receive court-ordered child support from the other parent. Regardless of the situation leading to the divorce, parents are responsible for the care of their children until the children reach age 18. In many cases, child support also includes funding for post-secondary education.
A divorce can also impact your insurance coverage if the entire family was covered by a single plan. It can affect your estate planning, income taxes, and any bank accounts or credit cards that you hold jointly as well. A court will determine the assets and debts held by each party of the divorce during the discovery process, establishing its financial impact.
While divorce is highly emotional, it’s important to consider the logistical implications as well as your financial future. Depending on the length of your marriage, your finances may have been mingled with your spouse’s for most of your adult life. Figuring out how to equitably separate them in a way that is fair to both parties can be complicated, which is why you need a lawyer that you can count on to be on your side throughout the proceedings. A good Texas divorce lawyer can help you to understand the financial impacts of your divorce and what you should ask for as part of the settlement.
