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Some key financial considerations before you begin your divorce

On Behalf of | Oct 21, 2020 | Divorce

Whether you’re just beginning to consider divorce or you’re ready to talk to an attorney and start the process, one of your biggest worries is likely how it will impact you financially. It’s important to take a look at your current financial situation and what you’ll need to seek in the divorce to minimize the negative impact.

Here are a few things to consider:

How will the divorce impact your cash flow? Are you able to support yourself or will you need some support from your spouse for a while? Will your spouse need support from you?

How much debt do you have? In Texas, debt that’s incurred by either spouse during the marriage is typically considered their shared responsibility in a divorce. It’s a good idea to get all of your credit card and loan documentation as well as a copy of your credit report so that you know what you’re dealing with.

Where will you live? One of the biggest assets that most divorcing couples have to find a way to split is the house. Often, they opt to sell the family home and split the proceeds because neither one may be able to afford the mortgage and other expenses of homeownership alone.

Housing will likely be one of your largest expenses as you create your post-divorce budget, even if you move into an apartment. Therefore, it’s wise to consider whether what you want to seek when you and your spouse begin working out the details of your property division.

Retirement income: Many couples are divorcing as they approach retirement or even after they’ve retired. Splitting up your retirement accounts can be complicated, but your attorney can help you with that. If you have been married for at least a decade, you will likely still be able to claim Social Security spousal benefits based on your spouse’s work record when the time comes. Knowing your options can help you plan for a post-divorce retirement.

Everyone’s financial situation and concerns are unique. Your attorney can provide valuable guidance and perhaps recommend that you also consult with a financial professional. This can help give you a clear idea of what your goals are as you work toward a financial settlement.