Financial issues are a common stress point in marriage and one of the main reasons that couples choose to end their marriage. These issues can carry over into divorce, and it is no secret that resolving money-related disputes can complicate and lengthen the process. However, a full understanding of how to protect one’s financial interests can help avoid unnecessary litigation and lay the foundation for a strong future.
It is critical to understand how debts and assets will be divided according to state laws. Texas is a community property state, which typically means that all marital debts and assets will be divided equally. A spouse could be equally liable for a debt, even if he or she is no longer married or living to the other person. Because of this, it is important for all debts to be disclosed.
As divorce will impact all assets, including retirement accounts, it is important to change beneficiaries on these accounts when appropriate. A new plan for retirement savings will be necessary as these are also considered community property if accumulated over the course of the marriage. Many Texas residents who are navigating divorce or considering divorce may find it useful to work closely with a lawyer who can help them make beneficial, practical decisions.
Divorce will change everything, including finances. It is important to know what to expect in order to properly prepare and work toward a strong future. A lawyer with experience in divorce in Texas can help a person prepare for divorce or effectively navigate this potentially complex process.
Source: msnewsnow.com, “7 ways to protect yourself financially in a divorce”, Andrew Housser, July 18, 2016
