It doesn’t matter if you’re considering divorce or already moving forward with the process in Austin, your financial situation is likely to take up a lot of space in your head. Regardless of your assets and liabilities, it’s critical to have a plan in place for dealing with everything that comes your way.
There are many potential financial implications of divorce, including the following:
- Children: If you have children with your soon-to-be ex-spouse, consider how this will impact your finances. For example, one parent may be required to pay child support to the other. Just the same, there may be questions about who pays for future educational expenses. And that’s just the start.
- Tax consequences: There is more to property division than what initially meets the eye. For example, the division of retirement assets, such as a 401(k) or IRA, is likely to impact your tax situation now and/or in the future.
- Life insurance: Many divorcing couples have to figure out how to best deal with active life insurance policies. As a general rule of thumb, the spouse who owns the policy should receive the policy. If you maintain life insurance after your divorce, double-check your beneficiary (as you probably don’t want it to remain your ex-spouse).
- Estate planning: Any major life event, such as divorce or marriage, calls for you to review your estate plan. For example, you may want to remove your ex-spouse as a beneficiary, to ensure that they don’t receive anything upon your death. Also, review your health care power of attorney, as giving this power to your ex may not be in your best interest.
These are far from the only potential financial implications of divorce, but they should definitely be at the top of your mind as the divorce process begins.
With the right approach, you’re able to prepare yourself for everything the divorce process will bring. This allows you to make informed and confident decisions that protect your finances now and in the future.
It doesn’t matter if you’re going through mediation or have moved on to litigation, do whatever it takes to protect your legal rights.
Visit our website for more information on family law matters, including divorce and property division.