Did you know that most people underestimate the financial impact of ending a marriage? Unfortunately, this means many spouses are ill-prepared to live on a single income during and after divorce.
Since Texas is a community property state, you must be extra cautious about what you do with marital assets before and during a divorce. For example, you should not withdraw substantial funds from your joint bank accounts.
Still, there are a few steps you can take to protect yourself from economic hardships in the aftermath of your divorce.
Consult a financial advisor
You may need to readjust how you address economic issues as a single individual, particularly if your spouse always handled your family’s financial matters. Often, an expert like a financial advisor or planner can help you understand your current finances and implement strategies to protect your assets.
Halt all unnecessary expenditures
As you may know, spouses are encouraged to resolve their property matters between them. As such, you may think you know what you will obtain. Remember, a judge must approve your property arrangements before they become binding. Instead of spending unnecessarily, hold on to your money to enhance your financial security if the judge overrules your property agreement.
Beware of hidden assets
Unfortunately, divorce often causes people to behave uncharacteristically. Many spouses are not above stashing away valuable assets to keep them out of the property division phase of divorce. Keep a watchful eye on your financial statements or consider working with a forensic accountant to spot possible misconduct.
A little planning can do much to prevent economic hardships from disrupting your single life. For protection in other areas of divorce, such as child custody and support, consider seeking guidance from an experienced legal practitioner.
