A marital breakup in Texas can be a challenging experience emotionally, but it can be just as hard financially. This is particularly true for those who do not have many assets or high-net-worth assets, including funds in their retirement accounts. A couple of tips may help with navigating these issues in the aftermath of a divorce.
Following a divorce, both parties generally must make the transition to independent financial living. Of course, this is much easier for the financially more sophisticated partner, or the moneyed spouse. The non-moneyed spouse, on the other hand, may be at a loss regarding what to do with any cash settlement received through the divorce.
One suggested move after receiving a cash settlement is to convert it into an investment portfolio that is diversified. The goal is to create a portfolio that will generate enough returns for the upcoming decade, two decades or three decades -- and at a risk level that one deems to be acceptable. This can be challenging and even frightening, particularly for those lacking the means to replace capital that may be lost. For this reason, connecting with a qualified investment advisor is critical.
When it comes to reaching the settlement in the first place, divorcing spouses can negotiate directly, alongside their respective attorneys, or agree to divorce mediation to try to work out a satisfactory settlement. An attorney in Texas will push for the most personally favorable outcome for the client in light of the circumstances surrounding the divorce proceeding. The attorney's goal in this situation is to ensure that the client receives his or her fair share of assets, including money in retirement accounts, so as to be in the best financial position following the end of the marriage.
Source: Forbes, "Divorce: Investing Your Financial Settlement", Rob Clarfeld, Feb. 21, 2018