When a Texas marriage is coming to an end, both spouses must take care to pay close attention to the division of marital assets. The outcome of that process will have a huge impact on each spouse’s financial standing in the months and years to come. As such, one of the biggest mistakes that spouses can make during a divorce is failing to have a comprehensive understanding of the full range of marital wealth.
It is not uncommon for one spouse within a given marriage to handle the bulk of the financial duties for the family. One person often takes responsibility for the bills, budgeting and savings, while the other handles other tasks within the family. This works well for many couples, but when divorce is on the horizon, the spouse who is not involved in the household finances can be at a serious disadvantage.
As soon as divorce becomes an issue, both spouses should take the time to gain a full accounting of the assets held within the marriage. This includes documenting the income of both parties, as well as all outstanding debts. Be sure to include investments, retirement savings and any other accounts that may exist. Each party should take care to look for hidden assets as well, and may wish to hire a forensic accountant if there is a suspicion that wealth has been intentionally concealed.
When a couple is moving toward divorce, preparation is key to a favorable outcome. Having all of the above-mentioned information in place can help a Texas spouse create a negotiation strategy that works for his or her financial interests. Failing to fully understand the family’s financial standing places a spouse largely at the mercy of the other party and can lead to serious money troubles in the years to come.
Source: thefiscaltimes.com, “Divorce: 3 Mistakes That Will Crush Your Financial Future“, Kathryn Tuggle, May 28, 2015
