Married couples if Texas may find that they can’t always make things work. If there are problems within the relationship that cannot be worked out, divorce might be the best thing for everyone. Before you go through the process, there are certain important steps you should take.
Review your insurance
Divorce means that you will no longer share the insurance with a spouse. You should review certain types of insurance like your homeowner’s and auto policies. If your name is not on the homeowner’s insurance, it should be there in the event that you get the home during your divorce. Your auto insurance rates might increase since many companies offer discounts to married couples.
If your spouse is listed as a beneficiary on your life insurance policy, you will want to update that. You might want to name your children instead.
Go over accounts
If you have joint accounts with your spouse, it can benefit you during the divorce. For example, if you receive sole ownership of your marital home, you will have to have your name on the mortgage or it will be difficult to qualify for a loan.
On the other hand, depending on the circumstances, you might want to remove your name from the deed to your home. If your spouse ends up getting your house as part of the divorce settlement, you can still be liable for problems if your name is included as an owner.
You will want to remove your spouse’s name as a beneficiary from your retirement account. Credit card accounts that are joint should be closed.
Check your credit report and open a new credit account
Checking your credit report before the divorce is final is important. It can help you see where you stand with your credit and see if there are any mistakes that could possibly hurt you. If there are errors, report them to the credit bureau. You will want to start fresh and open a new credit card that’s in your name only.
Learn about the tax situation
After your divorce, you will no longer have the benefit of filing taxes as married. When you have to switch back to filing as a single person, it can be overwhelming. You will have to pay more in taxes as married couples get more tax breaks.