There are many things that change for a couple as they move from being married to being divorced. During the divorce process, they will navigate changes in residence and family time, and, of course, drastic changes in their financial situations. Many people do have trouble with their finances before, during, and after divorce. Fortunately, there are things that you can do, even if you begin your divorce on shaky financial footing, to maintain financial stability throughout the divorce process and set yourself up for post-divorce financial success.

Dealing with debts is an unpleasant but extremely important aspect of divorce. One way that you can reduce the likelihood that debt will continue to be a problem for you after your marriage ends is to avoid incurring any new debt, if at all possible. Also, if you can, pay off some of your debts. Although it may seem tempting to put a hold on paying off debts until you (or the court, if you do not reach an agreement) decide which of you will be responsible for each of your marital debts, those debts pose a threat to your financial stability until they are paid off. If your spouse accepts responsibility for a debt as part of your property settlement, or if the court decides that they should pay that debt as part of the property settlement and they fail to pay it, the creditor can still try to collect payment from you. Getting rid of as much debt as possible reduces the chance that this will happen.

Navigating a change in financial resources is challenging, to say the least. Add to that the expense of transitioning from one household into two, and it becomes even more daunting. As you set up your independent living arrangements, challenge yourself to find as many ways to save money as you can. For example, if you need to rent a place to live, don’t jump on the first place that you see. Make a list of the features that you need, as well as the size and location that you desire, and shop around. The same goes for services like cell phone, internet, and utilities. You are starting fresh, so be sure that you select only the products and services that fit your needs as you move forwards into your new life.

If your spouse proposes a property settlement to you, go over it carefully with your attorney before you decide whether or not to agree to it. Make sure that you fully understand both the present and future effects that accepting the settlement offer would have on your finances, including any tax savings or liabilities that would be associated with dividing the property as proposed. If a settlement will meet your needs, accepting it may be a good way to avoid the expense of costly divorce litigation that could result in you receiving a property settlement that does not meet your needs.

Set yourself up for post-divorce financial success by opening a separate bank account for yourself and establishing credit in your name. After your divorce has become final, carefully check each of your insurance policies to make sure that they list the proper beneficiaries. Get rid of any policies on cars, real estate, or other things that no longer belong to you. Also, make sure that all joint credit cards are cancelled and all joint bank accounts are closed, and the proceeds are distributed according to your property settlement.

While you take steps to ensure a solid financial future for yourself, your Texas Family Law Attorney can help you pursue a property distribution that will meet your current and future needs. If you have questions about the effect of divorce on your finances, or any other issues related to your divorce or family law case, please contact attorney Alex Tyra today, to schedule your free consultation. We can be reached at (903) 753-7499, or you may visit us online to submit a convenient online contact form.