Divorce is becoming increasingly common. All age groups are now seeking a divorce. Additionally, women are becoming more likely to file for divorce. If you go through this process, the financial implications are noticeable.
Chances are, your income will fall due to a divorce. However, your life will continue, and you still have to pay the bills. That can bring about any of these questions about your financial state during and after your divorce.
How do you dismantle a shared financial life?
The first thing you need to do is sit down and look at your finances. Then, create a budget with your assets and income and plan for the future. Then, you can worry about other things, like alimony, separately.
What happens to your investments?
You divide your investments and other assets during a divorce based on local laws. Texas has some unique rules when it comes to asset division. For starters, it is a community property state. That means that any property acquired during the marriage has equal ownership, and the courts divide it equally between spouses. Additionally, during fault divorces, one spouse can plead victim to get a larger share of the estate.
What happens to your house?
While you might look at your house and see the place where you raised your kids and live, it is just an asset under the law. Put your emotions aside for a second. Think about if you can afford to keep your home. It is often better to list it and agree with your spouse on a fair sales price.
Divorce can put you through a financially challenging time. However, it can also give you more freedom and hope for the future.