Financial Factors in a Divorce
Divorce is messy, and it leaves nearly everyone in a state of anxiety and uncertainty. After all, it’s very difficult to know what your life is going to look like after your divorce. While many people cite money problems as a motivating factor in their divorces, many of these same people are surprised to find that a divorce doesn’t make their financial problems go away. Although every divorce is unique and everyone’s goal is to make it through as best one can, there are several financial factors that can help guide you toward the best decisions for you.
Shared Credit
If you and your divorcing spouse have any joint credit cards or accounts, now is a good time to cancel them. Figure out a way to divide the balances (if possible), and shut them down. You don’t want to tie your credit score to your soon-to-be ex’s spending habits. If you don’t have much of a credit rating on your own, now is a good time to get started on that.
Beneficiary Update
You probably don’t realize how many policies you have that list your nearly ex as a beneficiary—including pensions, annuities, life insurance, trusts, and retirement accounts. Everyone’s situation is unique, but now’s a good time to update your beneficiaries on these documents (having young children together can play a role in what will work best for you—consult with an experienced divorce attorney to sort this out).
Splitting The Family Home
The cleanest way to divide your family home in a divorce is to sell it outright and to equally divide the proceeds. This, of course, isn’t always feasible—for example, if you have young children that you want to continue to live at home you might not want to sell. In such a case, whoever’s living in the house should refinance the mortgage under their name, and the person who moves out should ensure that their name is no longer on the title or mortgage. It’s important to note that simply removing your name from the title doesn’t mean you’ve erased your liability on the mortgage.
Dividing Retirement Plans
If you have retirement plans to split, it can be especially tricky. An experienced Texas divorce lawyer will provide you with your options and will help you split the plan without incurring out-of-sight administrative fees and tax consequences. There may also be a specific order that needs to be filed. This is a task that’s best guided by your divorce lawyer.
Alimony And Child Support
Finally, if your ex will be paying alimony and/or child support, there are methods by which your attorney can help you set the payments up so that they’re paid automatically and consistently.
If You’re Heading Toward Divorce, Consult a Richmond, Texas, Divorce Lawyer Today
Every divorce is unique, but no divorce is easy. Your finances will play an important role in your divorce, and there are some things that you can do to help that piece of the puzzle go as smoothly as possible. Attorney Frank J. Vendt at The Vendt Law Firm, P.L.L.C., in Richmond, Texas, has the knowledge and dedication to help guide your case toward its most positive resolution. To schedule a consultation with Mr. Vendt, please contact or call our office at (832) 276-9474 today.
