Avoid Financial Pitfalls In Divorce

On Behalf of Steele Law Firm PLLC | Sep 21, 2018 | Uncategorized

When your friends and family learn that you are getting divorced, you’ll likely start hearing all sorts of advice. Some, you might welcome, while other tips come unsolicited. When it comes to finances, you’ll want to be quite selective as to whose advice you take. In fact, some well-meaning spokespeople can indirectly cause you serious financial problems if they steer you off-course.

The financial aspects of divorce can be tricky. If your spouse is willing to play fair, then you can simply be proactive and cooperate to achieve an amicable settlement. There are several things to keep in mind, however, to avoid common problems that can wind up leaving you broke after divorce. You’ll want to build a strong support system from the get-go to help you overcome any obstacles that arise.

Step by step

Preparing for divorce can be emotionally upsetting and overwhelming. It’s always a good idea to take things one step at a time and to know where to turn for guidance, as needed. The following ideas are practical ways you can protect your finances during divorce:

• If you have never really been one to budget, now is a good time to start. Especially if adapting to a single income is going to be challenging for you, you’ll have a better idea of where you stand financially by creating a budget ahead of time.
• You will navigate property division proceedings at some point. Be prepared by listing all your assets and liabilities before you go to court.
• If you suspect your spouse is not being forthright regarding financial disclosures, you can further investigate the matter to protect your rights and best interests.
• Pay stubs, bank account information, credit card statements and other documents are important documents that you’ll want to have in your possession when preparing for divorce.

If your relationship with your spouse is less than amicable at this time, you’ll want to arm yourself with information, especially regarding Texas property division laws, in order to protect your rights. As for new financial decisions, it may be best to hold off from making any major life-changes until the court finalizes your divorce. In addition to consulting with a financial analyst, it’s a good idea to know where to turn for legal support as well.

Financial relief

You may find that your divorce prompts a need for debt relief. There may be several options available to help you get things back on track. The good news is that most financial problems, even those prompted by divorce, are temporary, as long as you know where to seek support and are willing to adapt your plan, as needed.