Practical Steps for Preparing Financially for Divorce

Dissolving a marriage, particularly one of long duration, can be a difficult and financially demanding process. Especially if you rely wholly or partially on your spouse’s income, preparatory steps are vital to making you organized and informed before proceedings begin and to give yourself the best chance for immediate and long-term financial security.

Here is a checklist of positive actions you can take to help make the process smoother and less stressful:

• Seek professional guidance — Seek the advice of a qualified Texas divorce attorney, who can explain your rights, advise you on what to expect during the divorce process and advocate for fair support and property division. You may also benefit from consulting an accountant or financial planner to analyze your assets and anticipate your long-term needs and options.

• Gather and organize financial information — Start by collecting copies of all your important financial documents. These can include bank statements, tax returns for the past several years, pay statements, investment and retirement account statements, property documents (like deeds and mortgages), car titles, insurance policies, household bills and credit card and loan statements. Having this information at hand is critical to ensuring readiness in settlements and negotiations and can make a significant difference in obtaining a fair outcome.

• Take stock of your assets — In Texas, most assets and debts acquired during the marriage are community property belonging to both spouses. The property owned before marriage, as well as gifts or inheritances you received individually, are regarded as separate property. Determining which assets are community versus separate is key to an accurate and fair division of property.

• Assess expenses and budgeting — Look at your current household expenses and anticipate how they may change after divorce. Track your spending and project a realistic budget based on your needs moving forward. This assessment not only helps you plan for the future but will also serve as a guide in negotiations over temporary or permanent support and division of property.

• Establish credit and secure funds — If you do not already have a bank account or credit card in your own name, open these as soon as you can. A separate bank account allows you to manage your own finances and allows you access to funds independent of your spouse. If possible, set aside an emergency reserve: enough to cover two to three months’ worth of expenses such as rent and groceries. Also, a credit card in your name helps establish and improve your personal creditworthiness, which will be important if you need housing or loans after the divorce.

Texas law allows for temporary spousal maintenance for an eligible spouse during the divorce process. This is court-ordered payment by one spouse to help the other maintain stability and meet their needs while the divorce is ongoing. In deciding whether to order maintenance, a judge will consider whether the requesting spouse is in financial need such that they cannot pay for their monthly expenses. You may also qualify for post-divorce maintenance upon a strong showing of financial need.

The Law Office of Shelly A. Merchant in Deer Park provides compassionate and skilled divorce representation to clients throughout Harris County, Texas. To schedule a consultation, please call or contact us online.