Financial Issues to Consider During Divorce
Divorce can be a stressful and confusing time for anyone going through the process. Other than child custody, the number one issue in any divorce is finances. The financial decisions that you hammer out in your divorce will likely have a significant effect on your financial future, and there are some steps that you can take now to bolster your financial security.
The Devil Is In The Details
Divorce is messy, and your thoughts and efforts are likely going in many different directions. If you carve out some time now, however, to take care of some of the financial details, it will help prepare you to move forward into your future with confidence. Let’s take a closer look:
- Update your estate and policy plans. It’s never fun to think about estate planning, but if you’re going through a divorce, it’s a good time to remove your soon-to-be ex as an inheritor. Further, make sure that your insurance policies, retirement accounts, annuities, pensions, and other such documents no longer list your divorcing spouse as a beneficiary.
- Clean up your credit. Before your divorce is final is a great time to clean up your credit score and ensure that any joint accounts are shut down. Divorce is the time for a fresh start, and you don’t want your finances entangled with your soon-to-be ex’s credit card habits. If you haven’t built your own credit history now is a good time to start.
- Divvy up your home. Your home is probably the most significant asset you have, and dividing it between the two of you may be one of your most daunting financial tasks. If neither of you plans on staying in the home, the cleanest approach is to sell the house and divide the proceeds. If, on the other hand, you plan to continue living in your home—with your children, for example—it’s important to refinance your mortgage and transfer it to your name. If you are staying, you’ll probably be required to buy your ex out of his or her half of the property. Again, this is all in an effort to extricate your finances from one another’s.
Although divorce comes with its own unique challenges, paying attention to your financial situation is essential. Your dedicated divorce lawyer will help ensure that you get your finances in order so that you don’t experience any pesky financial surprises related to your divorce down the road.
Consult a Texas Divorce Attorney Today
Evaluating and taking care of your financial situation before you divorce can help you move forward with purpose and confidence. Attorney Frank J. Vendt at The Vendt Law Firm, P.L.L.C., is here to help you do just that, whether you live in Richmond, Katy, Richmond, Rosenberg, or anywhere else in Texas. Mr. Vendt has the experience, knowledge, and dedication not only to help you clean up your finances but also to protect your financial best interests throughout the divorce. To schedule a consultation with Mr. Vendt, please contact or call us at (832) 276-9474 today.