Getting divorced in Texas often takes a toll on your finances, however, it is important to know you can recover. For many parties who are newly separated or in the process of getting divorced, the financial impact of divorce can be difficult to manage at first. Instead of living in a single household and sharing finances, you will now have to live on a single salary and may have additional unexpected expenses, such as childcare costs because of co-parenting.
If you are worried about what kind of settlement you are likely to get from your divorce, you should keep in mind that Texas is a community property state. Under Texas law, most property acquired after the date of the marriage will be classified as community property and will be divided between the parties in a manner the court deems just and right. But even assuming the division of community property is fair, you may still have concerns about getting your finances back on track.
The following are some tips for regaining control of your financial life after divorce in Dallas.
Take a Financial Inventory
If you want to regain control of your finances after a Dallas divorce, it is extremely important to understand what assets you have, what debts you owe, and what type of income you can expect. It is often helpful to use a spreadsheet to determine what amount of money you bring in and what you owe each month. When it comes to debts, you should also consider and discuss paying off debts altogether and, if possible, avoiding future liabilities.
Make a Budget That You Can Stick To
After you have taken a financial inventory, the next important step for regaining control of your finances is making a budget to which you can hold yourself accountable. You should consider any monthly bills, budget for unexpected expenses, and leave yourself room for entertainment and recreational activities. By having a budget, you can know exactly how much you must spend, what you need to spend money on, and how much may be leftover.
Make Any Necessary Modifications to Your Accounts
An extremely important element of regaining control of your financial life after divorce is making necessary modifications to your accounts. What does this mean? First, if you still share any accounts in name with your spouse, it is time to change ownership of the accounts or, if necessary, to close those accounts and reopen new ones in your name alone, subject to court restrictions that are in place during your case. This goes for bank accounts, credit card accounts, and any other relevant accounts. When you and you alone have access to your financial accounts, you can make sure you have control over them.
When you make changes to your accounts, it is also a good idea to reconsider beneficiaries on your accounts. For example, if your ex-spouse is named as a beneficiary on a life insurance policy, now is a good time to make those changes.
Contact a Texas Divorce Lawyer
At Orsinger, Nelson, Downing and Anderson, LLP, we are committed to assisting clients with a wide variety of divorce questions and concerns in Texas. Our experienced Dallas divorce lawyers regularly service individuals and families in Dallas, Fort Worth, Frisco, and San Antonio. Contact Orsinger, Nelson, Downing and Anderson, LLP to learn more about how we can help with your divorce.