Divorce involves a separation of two lives that were joined together, and that includes separating the money and assets that a couple owns. Texas is a community property state. Everything that one or both spouses came to acquire during the marriage is considered part of the community property that gets divided in the divorce. Whether you and your soon to be former spouse settle on the issue of dividing your property or a judge decides that for you, the result will be an equitable division of the property.
As you navigate the financial discussions and decisions of your divorce, the following three financial strategies will help you come through your divorce in the best possible financial position. The first strategy is not a strategy per se. It’s a reminder and an important one at that. When listing assets or discussing money in your divorce, you are legally obligated to be one hundred percent honest. If you attempt to conceal or hide assets in any way, the penalty for being found out can cost you even more than you would gain if you had gotten away with it. This means no hiding money in offshore accounts, no giving expensive items “away” to friends or relatives, no lying about whether the oil or gas lease that you bought is productive, or anything else that is not the truth. Don’t run the risk that you could get penalized with a lopsided divorce decree or criminal charges for concealing assets.
Hiring a divorce attorney is another financially sound strategy for your Texas divorce. This seems counterintuitive because lawyer fees are an expense, but you get what you pay for regarding the expertise and efficiency with which your attorney can help you understand your financial situation in the context of your divorce. Your Texas divorce attorney will also help you understand your options are for creating a divorce settlement that is equitable in light of you and your soon to be former spouse’s priorities. Settling a divorce costs far less than litigating it, and divorcing couples who work with attorneys are well-served by the attorneys’ ability not only to communicate and help them negotiate a settlement but to create an agreement that a judge is likely to approve.
Managing debt is another good financial strategy for divorce. When you know that you are getting a divorce, do not take on new debts. Try to pay off some of your smaller or higher interest debts during the divorce process. It’s true that apportioning responsibility for paying marital debts is part of your property settlement, which must have the overall result of being equitable. However, the after-effect of what appeared to be an equitable division of debt may not work out as planned. If your soon to be former spouse gets assigned responsibility for a debt as part of the divorce decree and they fail to pay it; the creditor may try to collect payment from you. In contrast, paying off debts before the divorce ensures that they are gone forever.
A Texas Family Law Attorney can guide you in understanding your options for dividing your property and in all matters regarding your divorce. Call (903) 753-7499 today, to set up a consultation with Texas Family Law Attorney Alex Tyra. Alternatively, visit our web page anytime and submit an online contact form.