Financial planning and divorce

Texas couples preparing to go through a divorce need to make sure that financial planning is a part of the process. Many people fail to financially plan for their futures after the divorce, leading to financial pitfalls and problems.

People who expect to be paying child and spousal support need to go beyond thinking about how those amounts will impact their budgets. They should also plan for how they will be able to invest while making those payments. People should also include a plan to contribute to their retirement, understanding that their retirement accounts will likely be divided.

Another important consideration is thinking about how liabilities will be paid after the divorce, especially when a person will be going down to one income instead of two. People may determine that they would be better off moving to a less expensive home rather than staying in the marital home if making the payment will be difficult on their own. After considering everything, each spouse may want to gather all of their financial documents together, including a listing of their assets and liabilities, and meet with their respective family law attorneys and financial advisers.

Facing the end of a marriage can be difficult for many people. A person who is in this type of circumstance may want to get the advice of a family law attorney regarding property division and finances, among other matters. An attorney may be able to help negotiate a property settlement that will best protect the client’s financial interests after the divorce. This could include helping the client reach an agreement in which the client gives up the right to one type of asset in exchange for not dividing the retirement account balance, for instance.