Going through a divorce can have the potential to wreak havoc on your finances. One of the main reasons for this is because, in Texas, the legal theory of community property is recognized. This means that, in many cases, assets will be divided between spouses 50/50, even if one spouse acquired the vast majority of income.
If you are considering filing for a divorce in Texas, it is important that you plan ahead to ensure that you are organized and that you go about the process in a way that protects your interests. The following are some strategies that you can adapt to ensure that you get a successful financial outcome from your divorce.
Think twice about selling the family home
For the majority of families, their primary residence is their biggest asset. This means that when it comes to dividing up property, selling the family home seems like a no-brainer. However, it is important that you fully evaluate the pros and cons of doing this. Selling a home can mean that large transaction costs are incurred. Additionally, you should think of the emotional impact that this might have for your children.
Choose your battles wisely
Many divorcing spouses fall into the trap of getting involved in petty arguments. Financially speaking, it will be beneficial to you to only invest time and energy in the negotiations regarding significant assets. Getting dragged into petty arguments can blur your vision and lead to financial losses.
Don't forget about the accumulation of debt
While the division of assets is a significant part of property division, so is the division of debts. If your spouse has accumulated a significant amount of credit card debt, for example, you should take action to make sure that this debt responsibility is not split equally at divorce.
Factor in the costs of alimony and child support
Many divorcing spouses do not consider the possibility of needing to pay significant amounts in child support and alimony in the future. It is important that you plan financially for this.
You can never plan too early for a divorce filing. By understanding how the law works in Texas, you will be better equipped to take positive actions.