For Texas couples, the breakdown of a marriage is a difficult time. People do not get married with the intention of getting a divorce, but the facts are that a substantial number of marriages end in divorce. There is nothing wrong with being prepared, particularly if there are worsening problems in the marriage.
There is a litany of concerns that will come to the forefront such as how the children will react, what will happen to property and their financial circumstances. Finances are a primary worry and people should be aware of how they can protect their interests as they head for divorce.
What is advisable financially as a divorce decision approaches?
In marriages where the parties are on reasonably good terms, it might be possible to discuss finances in an open and aboveboard way. This can be effective with couples who both know there are challenges with the union and parting ways is a legitimate consideration. For example, they could stop using joint credit cards and begin the process of separating their assets including bank accounts and investments.
Some people take the step of having a prenuptial or postnuptial agreement. This will generally dictate what will happen after the divorce. It often smooths the process and prevents rancor. Of course, the document needs to be valid and both sides signed it willingly. The agreement could say who receives what in the divorce and detail how support issues are handled.
There are instances where finances are tied up in large purchases. A marital home is an example. Statistically, three out of four first-time home purchasers are married couples. When calculating the number of people who get divorced and comparing it to those who are buying their first home, it will clearly lead to disputes over the property.
If both spouses are listed as owners, it can complicate matters as there will need to be a determination as to what to do with the property. One can buy out the other; they can decide to sell it and split the proceeds; or it can decline into discord over who is entitled to it. Even if one person was the main earner and largely paid for the property, the other person could claim their contributions entitles them to a large portion of its value. These and other factors are likely to arise.
Knowing how to address divorce concerns can ease the process
Regardless of a person’s financial situation and if they are a high-asset couple or are of more modest means, it is imperative to be fully prepared. In situations where the divorce seems inevitable, there are ways to avoid rancor and complications by taking specific steps in advance. In cases where the divorce comes as a surprise or occurs due to someone’s hidden behaviors, it can be harder.
Divorce happens to people of all ages. Younger couples might have fewer assets, but will be in tougher financial straits than older people. Those who have retired and accumulated property, retirement funds and saved money will need to consider how they will untangle their finances. No matter what, family law can be difficult and being prepared is key.