Over the years, we have heard clients say they had wanted a divorce for a long time, but delayed it for years because they were afraid it would ruin their credit, or they would end up bankrupt or penniless. This uneasiness is understandable as these fears are not necessarily unfounded.
Many divorcing spouses have made financial mistakes that have resulted in long-lasting consequences. However, the good news is that most mistakes can be entirely prevented with the proper education, preparation, and high-caliber legal counsel.
Financial Issues to Consider in a Divorce
If you are in a destructive or insupportable marriage and are worried about the financial implications, the old saying is true, “Knowledge is power.” The more you understand about your rights and responsibilities under Texas’ divorce laws, the better position you will be in to protect your financial standing.
If you decide to file for divorce, here are some important things for you to consider:
- Texas is a community property state.
- Spousal support (a.k.a. alimony) is not automatically awarded.
- Child support and spousal maintenance are subject to modification in the future.
- If spouses cannot agree on a marital settlement agreement, the judge will decide for them.
- It is typically much more cost-effective to seek an agreed divorce settlement than pursue divorce litigation.
- What you post on social media can affect certain aspects of your divorce.
- Adultery can have a definite impact on spousal support and property division.
- Spousal support is tax-deductible for the paying spouse, and counted as income for the receiving spouse.
- Spouses cannot legally conceal marital assets in an attempt to deprive their spouse of their fair share of the community property.
- It is critical that you are diligent about protecting your credit during a divorce.
- It may be in your best interests to sell the marital home.
Unfortunately, many spouses let feelings of anger, grief, jealousy, or apathy to cloud their judgement during the divorce process, leading to long-lasting financial consequences. Fortunately, these mistakes can be avoided with the right information and direction from a Katy divorce lawyer.
It is important that you protect your credit and your share of the marital estate. That being said, our firm is here to answer your financial questions and offer you sound guidance every step of the way should you need it.
We are only scratching the surface on the state’s community property laws. If you have further questions about property division in Katy, Texas, please contact our firm to schedule a consultation.