Emotions are often high when a marriage ends. Sometimes, it is easier to focus on the minutiae rather than face the prospect of a future alone. Unfortunately, this thinking will only put a Texas resident’s financial future in jeopardy. Instead, the focus should be on how to structure post-divorce finances and what steps need to be taken during the divorce process to provide the best opportunity to fulfill the plans an individual makes.
For instance, health insurance is often a concern after a divorce. If one spouse was on the other party’s plan, other arrangements will more than likely need to be made. If a couple has children, who will be responsible for providing health insurance for the children? Who pays for the incidental expenses such as co-pays and prescriptions? These questions need to be answered sooner rather than later so that any agreement between the parties can be memorialized.
A budget is essential for any Texas resident facing divorce. The resources that once supported one household will now have to support two, and that requires some adjustments. Even when a realistic budget is designed during the divorce, it might still require tweaking post-divorce. The more conservative and realistic the budget is when negotiating a settlement, the better the chances that any adjustments needed post-divorce may not be drastic.
These are just two areas of post-divorce finances that require consideration and planning during the process. Regardless of how the marriage ended, each party would benefit from putting aside their feelings for the other and think about their individual futures. Ultimately, the divorce will happen, and both spouses need to do what they can to prepare their finances in such a way that allows as smooth a transition as possible going forward.
Source: Wicked Local Southborough, “Dollars and Sense: Finding financial stability after a divorce“, Alan F. Auteri, May 9, 2017