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Make a financial plan before a divorce

| Dec 20, 2019 | Divorce |

While the divorce rate in the United States has gone down since the 80s, about 39% of marriages still end in divorce. Since divorce can be financially devastating, couples in Texas should learn about a few steps they can take to get their finances ready before splitting up.

Some spouses have benefited from discussing their finances with a financial planner, especially if they have not had the most active role in managing the family’s money. These professionals could help a client deal with tax laws, asset distribution and other aspects of finance that will help them to be sure that they get a fair settlement in a potential divorce.

Before a couple divides their property, they need to know their assets. It is wise to compile a list of all assets, including retirement, investment and savings accounts. Printing out bank statements and income tax returns while gathering pay stubs and the like can help a person to understand where they sit financially.

A soon-to-be ex-spouse should calculate a new budget. They need to determine what their new living costs will be and calculate how these may be affected by payments like spousal and child support. Medical insurance could be affected by a divorce, so an ex should consider the new costs of insurance and learn about other options that may be available. Conservative spending is usually wise during a divorce.

Retirement accounts will likely be affected during a divorce. A lawyer could show a client how a divorce would affect their finances, including their estate plan. Legal counsel may also provide information about child custody, alimony and child support. If it is necessary, a lawyer could represent a client in court and argue for their fitness as a parent.