Divorce can be a difficult financial time for many people in Texas. In fact, many people stay in unhappy marriages for years because of their fears about the fiscal effects of a divorce. In some cases, the emotional and practical aspects of a divorce have long since been completed, but the financial consequences can linger on for years. However, by keeping some key tips in mind, divorcing spouses can help to protect their assets and emerge for divorce ready to meet their financial goals for the future.
In the first place, many people feel a desire to spend after ending their marriages. They may want a new look, a single vacation or a new home or car. While minor expenses may not be a problem, the immediate post-divorce period can be a poor time for large decisions like taking out a new car loan. People often need to adjust to the realities of a single-income household, so it can be better to opt for frugal choices immediately after a divorce. After some time has passed, people are better able to estimate their new budget.
Others may face difficulties making ends meet and paying the bills as part of their new single lifestyle. They may be tempted to liquidate assets held in investment funds in order to cover expenses. However, there can be costly tax consequences to cashing in an investment, and people may be set back significantly in their financial goals. If possible, it’s better for people to look for ways to cut their budget and save.
When people decide to divorce, they may be uncertain about how it will affect them financially. A family law attorney might provide advice and strong representation to a divorcing spouse throughout the process, helping them arrive at a settlement on issues like property division and spousal support.