Going through the marital dissolution process in Texas can be stressful for a number of reasons. However, one of the biggest areas of contention during divorce is finances. A few tips may help one to experience as smooth of a divorce process as possible.
First, creating a budget for the post-divorce period is critical. Both a spouse who was dependent on the other party financially during the marriage and the spouse who was the primary breadwinner will face different financial situations following their separation. Thus, new individual budgets are necessary to account for these changes.
Second, closing joint accounts is critical. These accounts include joint checking and savings accounts as well as accounts for mutual funds and credit cards. Closely monitoring one’s credit report is important to ensure that one’s new financial situation is accurately reflected on it as well. In addition, updating beneficiaries on accounts such as IRAs, 401(k)s and life insurance policies is important so that these assets do not end up in the hands of one’s ex-spouse versus those of a potential future spouse down the road.
Finally, pursuing divorce mediation may be beneficial. Mediation is an alternative process to traditional divorce litigation, where two spouses can come together and work on reaching a mutually beneficial agreement with the help of a neutral third-party mediator. With mediation, the spouses can avoid further court intrusion. However, if they cannot find common ground, they will have to depend on a judge in Texas to make final decisions for them regarding matters such as property division.
Source: newswire.net, “5 Financial Tips for a Smooth(er) Divorce“, Jennifer Gretson, Oct. 21, 2017