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Understanding financial concerns for divorcing spouses

On Behalf of | Jul 13, 2021 | Divorce

Going through a divorce can be a painful and stressful time for both spouses. Even so, Texas couples going through a split should focus on critical matters related to the proceedings, especially financial issues. Those who don’t take care of financial concerns may find that their divorce leads to dire money troubles.

Taking care of financial responsibilities

When a spouse moves out of the marital home, their mind might focus on convenience, such as choosing the first available apartment. If they’re renting month-to-month, that could bring short-term financial pain. Likewise, signing a lengthy lease at an overly expensive apartment could drive up costs immensely. Little things like these add to the financial burden of going through divorce. Other mistakes and oversights could create even worse troubles.

A proper budget might examine rent, insurance, food, transportation and more. Without effectively budgeting a new lifestyle, a divorcing spouse might end up financially strained and unable to remain fiscally afloat.

Some individuals want to hang onto the house, but this could turn into a disastrous problem. Owning and living in an unaffordable house may result in financial hassles. Perhaps selling and dividing the assets is a preferable plan.

The divorce proceedings

Divorce proceedings come with many financial considerations, including asset and property distribution, debt and tax payments, maintenance support, child support and other considerations. Approaching the settlement with fairness in mind is important because asking for things the other party and the court aren’t likely to award could increase time and costs.

Organizing all financial accounts, both assets and liabilities, will help move the divorce proceeding along better. Poor financial documentation could result in dragging out settlement negotiations and even create potential problems in court.

A family law attorney may advise a client on financial matters to help protect their finances during and after divorce. The attorney may seek an equitable division of assets for a client and work to negotiate the best possible outcome.