Texas is a community property state, which means that all assets acquired during the marriage are generally considered owned equally. If you made more money than your spouse during the relationship, it may also mean that you were able to put more into a retirement or savings account. It may also mean that you’re capable of paying alimony or child support after the divorce is finalized.
Savings accounts
If you were the primary or sole breadwinner during the marriage, you probably contributed the bulk of the money sitting in a savings or retirement account. However, as it is considered a joint asset, your spouse may be entitled to half of that money regardless. Furthermore, a separate account may become community property if it was used to pay for or maintain a joint asset such as a house or car.
Protecting your property
You may be able to safeguard assets during and after your divorce by creating a prenuptial or postnuptial agreement. This type of document can be used to override state divorce laws, which may allow you to retain control of a business or keep a house in your name. You may also be able to safeguard assets by putting them into a trust well before divorce proceedings begin.
Alimony and child support aren’t forever
Alimony payments are typically limited in scope and may be reduced or eliminated if your former spouse’s circumstances change. Furthermore, you may be able to use a prenuptial or postnuptial agreement to limit or eliminate the need to make payments in a final settlement. Child support payments typically end after a child turns 18, and it’s also possible that the amount you’re required to pay goes down. This may be true if your spouse gets a job, an inheritance or other financial resources.
A divorce can have a significant impact on your finances regardless of how much you earned during the marriage. Taking a proactive approach to the divorce settlement process may help you protect assets or otherwise minimize the potential short or long-term hit to your wallet.
