Finances are a primary concern for many people about to end a marriage. A change in lifestyle is usually inevitable after a divorce, and making ends meet may require some support. Even if a Texas resident receives spousal support, he or she may decide to take advantage of another source of income to supplement it -- Social Security benefits.
Ending a marriage means untangling the financial life of a Sugar Land couple. In order to do this properly, each party needs to pay close attention to the couple's current financial situation as well as what each of them will need for the future. This means preparing for the financial aspects of the divorce ahead of time to gain some idea of how to divide assets and liabilities going forward.
Many Sugar Land couples decide to end their marriages due to some sort of incompatibility. Perhaps they fell out of love, one cheated on the other or arguments about everything from dinner to money have become too much. The point is that they decide to divorce because they no longer want to be in the marital relationship. However, a new trend appears to contradict this thinking.
Ending a marriage is an emotional time for everyone involved, but the challenge of dealing with that aspect is not the only concern Sugar Land couples have. The divorce process itself presents numerous challenges as well. Determining what is separate versus community property, deciding how to divide retirement accounts and more can cause a great deal of stress in their lives. Things continue to get even more complex for couples with children.
Many millennials here in Texas and across the country watched their parents go through divorce and struggle with dividing their assets. For this reason, many millennial couples are more mindful of identifying separate versus community property when they marry. In fact, around 28% choose to keep separate financial accounts, believing they will remain 100% theirs in the event they divorce. The problem is that may not be true.
More and more people are becoming aware of the need for estate planning in Texas. Protecting assets for one's heirs has become an important issue and people realize they can protect those assets with an estate plan. Most plans attempt to cover all foreseeable contingencies. Divorce may be one contingency that is not planned for. In the event of a divorce involving an heir, the issue of separate versus community property may arise.
Divorces can often drag out over a long period of time, but high asset individuals may want to take steps to finalize their agreements sooner than later. Under new tax laws, people who divorce after Dec. 31, 2018 will no longer be able to deduct alimony payments unless they use retirement accounts to transfer funds. Trying to get ahead of this change may be best for many individuals in Texas, especially those with a high net worth.
Couples or individuals can often get tripped up with common mistakes during a divorce. For Texas divorcees, these often result from misunderstandings of family law and financial mismanagement. Whether it's a misunderstanding of separate versus community property or reckless financial behavior following a separation, these common issues can make it extremely difficult to rebuild after a marriage ends.
Sometimes, marriages in Texas come to an end no matter how hard couples try to make them work. However, that does not necessarily mean the divorce process has to be a drug-out, painful one. This is true even if two spouses may not necessarily be on the same page when it comes to dividing retirement accounts and other assets. A couple of tips may help with navigating the divorce process in the most efficient and positive way possible.
When two individuals in Texas decide to get divorced, they may naturally be overwhelmed, not knowing where to start. After all, divorce is a complicated emotional process as much as it is a complicated legal and financial one, especially for those dividing large assets, such as retirement accounts. Here are a few tips regarding what to do and what to avoid doing during this type of family law proceeding in the Lone Star State.